The World Bank has approved a substantial $800mn financing package for Uzbekistan under its Development Policy Operation (DPOS) with the primary objective of expediting the country's transition to a market economy. This initiative also aims to ensure equal economic opportunities for citizens and establish a solid foundation for sustainable economic growth.
World Bank's report shows that Uzbekistan has made a progress in transitioning to a market economy. However, the need remains to expedite this process and shift the current economic model towards a more environmentally friendly and equitable one. These measures are deemed essential for achieving socio-economic development goals and environmental protection in the country.
The Uzbek government has set ambitious targets, including halving poverty levels by 2026 and elevating the country to the status of upper-middle-income economies by 2030. To meet these goals, the World Bank suggests that faster economic growth is imperative. This can be achieved by reducing state control over the economy and emphasizing the private sector as the main driver of economic development.
Marco Mantovanelli, World Bank Country Manager for Uzbekistan, outlined the operation's objectives, stating,
"The new World Bank operation aims to support key government priorities, including reducing state dominance in critical sectors such as agriculture, rail, chemicals, and energy."
The operation is designed to facilitate private sector participation in these industries and enhance socio-legal protection for vulnerable groups, along with addressing climate change and environmental challenges.
The $800mn loans allocated to Uzbekistan come with special preferential terms, offering the government a lower interest rate and an extended repayment duration compared to conventional international financial markets. This financial arrangement allows Uzbekistan to redirect saved resources toward priority socio-economic tasks.
Zhasur Karshibaev, Deputy Minister of Economy and Finance of Uzbekistan, affirmed the government's commitment to a reform program.
"The World Bank is supporting the country in achieving this goal by providing the necessary expertise, international experience, and financing," Karshibaev added.
The financial resources provided by the World Bank are designated for implementing reforms across key sectors of the Uzbek economy, including energy, railway, chemical industry, agriculture, fiscal obligations, social protection, gender-based violence, legal aid, climate change, environmental protection, and the transition to a "green" economy.
Earlier Daryo reported that the World Bank's Board of Executive Directors has approved a $50mn soft loan for the "Digital Inclusion in Uzbekistan" initiative.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)