BAKU, Azerbaijan, August 28. Uzbekistan has
carried out broad reforms across its tax, banking, fiscal and
business systems since 2016, reshaping the country’s economic
framework.


This was reflected in an infographic released by Uzbekistan’s
Ministry of Economy and Finance.


According to the Ministry, the reforms were implemented under a
series of strategic documents, including the Action Strategy,
Development Strategy, and “Uzbekistan–2030” Strategy.


One of the key areas has been tax reform. The government has
worked to reduce the tax burden and simplify tax administration,
making the system more predictable for businesses. The World Bank has also identified tax-system
reform and reduced tax complexity as important components of
Uzbekistan’s broader economic transformation.


The banking and monetary system has undergone particularly
significant changes. Uzbekistan liberalized its foreign-exchange
market in 2017, including the unification of exchange rates, while
moving toward stronger central-bank independence and greater
reliance on market mechanisms.


Fiscal policy has also become more transparent. The reforms
introduced a legal framework for approving the state budget,
strengthened parliament's role in the budget process, and expanded
the participation of local governments in budget management. The
World Bank has noted that Uzbekistan has made substantial progress
in bringing off-budget expenditures into the formal budget system
and increasing fiscal transparency.







The government has simultaneously sought to improve the business
environment. Measures highlighted in the infographic include the
introduction of an Ombudsman institution to protect entrepreneurs,
the removal of planned inspections and certain licensing and
permitting requirements, and the creation of institutions such as
the Business Development Bank and Entrepreneurship Development
Company.


The reforms represent a shift from administrative management
toward greater use of market-based mechanisms. The most
consequential changes have been in foreign-exchange liberalization,
taxation, financial-sector regulation and fiscal transparency —
areas that directly influence investment decisions and
private-sector activity.


The World Bank says Uzbekistan’s real GDP growth averaged around
6% annually from 2017 through 2025, while reforms have helped
expand private-sector participation and improve access to foreign
investment.


At the same time, the reform process remains unfinished. The
World Bank continues to identify reducing state dominance,
accelerating privatization, improving competition, and
strengthening the environment for private investment as key
priorities.


In Trend’s assessment, the next stage of Uzbekistan’s economic
transformation will depend less on introducing individual reforms
and more on ensuring that the new market institutions work
effectively in practice. This includes stronger competition, deeper
financial markets, more efficient state enterprises and greater
access to finance for private companies.