Department of economics couse work from economics

1.2 Privatization and foreign investment.


In order to reduce the state’s participation in business in Uzbekistan, the Cabinet of Ministers adopted Resolution No. 166 of 29.03.2021 “On Approval of the Strategy 2021-2025 for the management and reform of enterprises with state participation”. According to this decree, it is planned to reduce the number of state-owned enterprises by 75%, to introduce modern management methods in enterprises with the involvement of foreign specialists, including leading specialists of the European Bank for Reconstruction and Development. Moreover, it is planned to increase the number of independent members of the supervisory board in state-owned enterprises. From July 1, 2021, an audit committee under the Supervisory Board and an internal audit service under the Supervisory Board will be established at all enterprises with state participation. It also provides for the placement of shares of at least 20 state-owned enterprises for public auction.
I would also like to note that on 04.05.2021, the Cabinet of Ministers adopted Resolution No. 266 “On additional measures for the effective use of the assets of enterprises with state participation”. This resolution contains lists of non-core and unused state property, which, first, will be put up for public auction. Secondly, it will be donated to the state administration bodies and local executive bodies on the right of operational management at the book value to the state property for further effective use. Third, the resolution provides for a list of organizations whose shares in the authorized capital are transferred to state authorities, local executive bodies and business entities at book value.
Foreign private investment means investment of foreign capital by a person who is not a citizen of Uzbekistan or by a company incorporated outside Uzbekistan, but does not include investment by a foreign Government or an agency of foreign Government Foreign Private Investment Act, 2001 license to the applicant, and shall determine in such license the period within which to implement the scheme and to start production. Investment sectors in Uzbekistan allows foreign investment in all sectors of economies except the following sectors:
 arms and ammunition and other defense equipment and machinery,
 forest plantation and mechanized extraction within the bounds of reserved forests,
 production of nuclear energy security printing and mining.


If government gives huge sectors of country to the private sectors , the development of these sectors will be increases in a high percent. Because foreign investors analyse the privatization of the country before investing to the sectors of this country. When we look at to the developed countries there are lots of huge private companies which owns to the capitalization amount more than some countries yearly GDP.