Uzbekistan Diagnostic Assessing Progress and Challenges in

Administrative reform needs to deepen and the various state agencies need to be better 
coordinated to free the private sector from dealing with a multitude of regulatory 
bodies and contradictory regulations
. This is also required to streamline state support 
programmes for the economy, make them more efficient and ensure that vested interests will 
not find new niches for preferential treatment. The establishment of the State Investment 
Committee in March 2017 to lead the formulation and implementation of a unified state 
investment policy and attracting foreign investments is a positive development in the 
institutional framework. In August 2017, the State Fund for Business Support was created to 
provide financial support to SMEs via credit lines and guarantees. Lastly, a Commission for 
Support of Entrepreneurship and Business Environment Improvement was proposed, to 
oversee business environment improvements, coordinate relevant activities of state and 
municipal authorities and organise regular discussions of investment climate challenges. 
Chaired by the President, the Commission is to include all key Ministers and Heads of 
relevant State Committees and Agencies, business associations and SOEs, as well as mass 
media. Establishing a Foreign Investor’s Council, which would cooperate with the 
government to promote foreign investment and address issues of concern for foreign 
investors, is also under discussion.
3.4 Financial sector challenges and access to finance 
To overcome state interference in credit decisions as well as lending to related parties, 
governance needs to improve, particularly in state-owned banks. State directed lending is 
distorting lending in favour of SOEs. Lending to SMEs is heavily based on collateral and 
insufficient for their needs. Non-bank channels for financing are little developed, though