Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov has defended Uzbekistan’s rising public debt, emphasizing that borrowing is a strategic tool for national development.
Speaking at a session of the lower house of parliament, Kuchkarov said, “There is nothing shameful about this. Borrowing is not a problem.”
According to Kuchkarov, Uzbekistan is taking on every dollar of public debt carefully and with specific goals. He explained that the country’s growing economy requires large-scale investments to meet its infrastructure, defense, and social obligations.
“Our growing economy needs a lot of money. There are expenses associated with the implementation of state tasks — roads, drinking water, energy networks, and ensuring national defense and border security,” he said.
Kuchkarov also pointed to the government’s housing initiatives.
“Today, multi-storey buildings are being built in all regions of the country, including the most remote districts. Entrepreneurs are building them. People are taking out mortgage loans and buying houses. The loan is provided for a long term. Long-term loans are also brought from abroad to provide banks with funds. This is also an issue related to our external borrowing.”
As of April 1, 2025, Uzbekistan’s total public debt stood at $42.4bn. Of this amount, $35.6bn was borrowed from external sources, while $6.9bn was sourced domestically. The public debt accounts for 33.5% of the country’s projected GDP for 2025. Kuchkarov stressed that this figure remains well below the legal threshold, which caps public debt at 60% of GDP.
“The leadership looks very carefully at every dollar of borrowing. Every dollar is subject to a thorough examination of why and for what purposes it is borrowed,” he noted.
Kuchkarov argued that economic growth justifies the current borrowing levels.
“When the gross domestic product is growing, incomes are increasing, and regions are becoming prosperous, a certain part of the expenses are covered by external debt. Anyone who says that the debt has increased should also mention that Uzbekistan's GDP has reached $115bn today.”
Sources and Allocation of Uzbekistan’s Public Loans
Uzbekistan’s public debt increased by $2.2bn in the first quarter of 2025 alone. A breakdown of the country’s external debt shows that 54% — or $19.3bn — comes from international financial institutions. The largest lenders include the World Bank, which provided $7.74bn, and the Asian Development Bank, which lent $7.44bn.
In addition, foreign government financial institutions have provided a total of $10.6bn in loans. The China Development Bank and the Export-Import Bank of China are the largest lenders in this category, with a combined $3.6bn. The Japan International Cooperation Agency also contributed $3.1bn. Foreign investors, meanwhile, purchased $5.66bn in international bonds issued by Uzbekistan.
The Ministry of Economy and Finance reports that $16.8bn of the country’s external debt has been directed toward budget support. Significant portions of the borrowed funds have also gone to key sectors such as agriculture and water management ($6bn), the fuel and energy industry ($5.9bn), electricity ($3.9bn), housing and communal services ($2.9bn), transportation infrastructure ($2.8bn), and healthcare, education, and ICT ($2.5bn). Another $1.7bn was allocated to the oil and gas sector. Overall, the fuel and energy sectors have received the largest share of borrowed funds.
Uzbekistan Faces Growing Burden of Debt Servicing
Uzbekistan’s public debt is projected to reach $45.1bn by the end of 2025, equivalent to 36.7% of the expected GDP of $125bn. The government plans to borrow $5.5bn this year, allocating $3bn for budget support and $2.5bn for investment projects.
Projections for 2026 suggest that GDP could exceed $140bn, with the public debt expected to surpass $53bn. The debt-to-GDP ratio is estimated to remain stable at around 37.9%, assuming favorable macroeconomic and fiscal conditions.
However, rising debt levels also mean increasing interest payments. In 2023, Uzbekistan allocated UZS 8 trillion ($623mn) for interest repayments on public debt. This amount rose to UZS 14.5 trillion ($1.1bn) in 2024 and is expected to climb to UZS 21.1 trillion ($1.6bn) in 2025. Forecasts show further increases to UZS 30.3 trillion ($2.4bn) in 2026 and UZS 33.8 trillion ($2.6bn) in 2027.
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