Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
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The national development strategy prioritizes SME development but no 
concrete strategic action plans have been prepared. A comprehensive policy 
framework for SME development and financial inclusion have yet to be 
established. The Cabinet of Ministers will play the leading role of coordinating 
SME policy discussions with line ministries and the CBU, and in setting an SME 
development master plan covering financial and nonfinancial issues.
4.4.2. role of state-owned enterprises and banks
ADB (2018) assessed the engagement and reform of SOEs in Uzbekistan and 
came up with several important findings. Based on these findings, this section 
discusses the role of SOEs, especially state-owned banks. 
Issues arising from SOEs.
The business environment in Uzbekistan has 
been partly controlled by enterprises that are fully or partly state owned. In 
Uzbekistan, all enterprises that are not directly or indirectly fully state-owned 
are considered to be not state-owned. Thus, for example, enterprises with state 
ownership of more than 50% but less than 100% are legally classified as private 
sector businesses. Privatization of SOEs is moving forward, but privatized 
enterprises with partial state ownership often dominate private sector markets, 
potentially crowding out new private sector entrants. Moreover, strategically 
and socially important enterprises remain SOEs, especially in banking, mining, 
gas, electricity, water supply, and transport. Some designated goods and 
services do not rely on market-based pricing but use the Ministry of Finance’s 
set pricing mechanism. This can limit the competitiveness of private sector 
business and risk market distortions, impeding private sector-led economic 
growth. The government is aware of this issue, and the national development 
strategy incorporates SOE reform as a key policy action under the pillar of 
economic development.