Uzbekistan Diagnostic Assessing Progress and Challenges in

INTEGRATED
[ATQ = 4.20]
Barriers to trading across borders are substantial
. Lengthy procedures to obtain border 
and documentary compliance, as well as frequently changing regulations, continue to hinder 
international connectivity and put Uzbekistan behind its regional peers in terms of ease of 
trading. FDI inflows were very low in recent years.
External integration 
Uzbekistan’s trade and investment openness was for a 
long time impaired by heavy regulation and 
restrictions both on current account and capital 
account convertibility.

Lengthy procedures to obtain border and 
documentary compliance and frequently changing 
regulations put Uzbekistan behind its regional 
peers in terms of ease of trading. Uzbekistan ranks 147
th
in the trade freedom component 
of the Heritage Foundation’s economic freedom index, which is a composite measure of 
average tariff rates and non-tariff barriers, the lowest among Central Asian countries. 

The country has 50 bilateral investment agreements; however obstacles to profit 
repatriation and also the repatriation of the principal due to the lack of currency 
convertibility recently severely constraint investment openness until.
Internal integration 

Domestic transport:
Despite an extensive 
network of roads and railways, the overall 
condition of the transport infrastructure outside 
main economic centres has remained poor due to 
insufficient maintenance services. Uzbekistan’s 
logistics performance is below the EBRD 
average due to lack of high-quality logistics 
services.

Cross-border integration: 
International logistics services, dominated mainly by foreign 
companies, remain inadequate due to inefficiencies in customs and border clearance. 
High cost of trading across borders hinders competitiveness and integration. 
ICT:
Although almost one-half of households have internet subscription (fixed and mobile), 
the ICT infrastructure is still owned monopolistically, and most services are limited to urban 
areas.