ADB Grants $500M to Boost Uzbekistan’s Economic Governance and Global Integration

The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support the Government of Uzbekistan in modernizing its public sector, improving fiscal transparency, and strengthening its integration into the global economy. The loan, part of the Economic Management Improvement Program (Phase 2), aims to build on the country's reform momentum and accelerate its shift toward a competitive, resilient, and inclusive market economy.

"This program reflects Uzbekistan's strong commitment to institutional reform, inclusive growth, and global integration," said ADB Country Director for Uzbekistan, Kanokpan Lao-Araya. "As a strategic partner, ADB stands firmly with the government in its pursuit of economic modernization. ADB remains committed to supporting reforms that unlock the country's full potential as Uzbekistan moves toward World Trade Organization (WTO) accession and deeper global engagement."

Advancing Fiscal and Governance Reforms

Phase 2 of the Economic Management Improvement Program introduces a comprehensive reform framework to strengthen the foundations of economic governance in Uzbekistan. The program focuses on improving public financial management, enhancing the efficiency and accountability of state-owned enterprises (SOEs), and fostering a competitive and transparent business environment aligned with international standards.

Key reform measures include:

• Unified regulations for public investment and public–private partnerships (PPPs), ensuring better alignment between public spending and development priorities.

• New legislation to strengthen competition policy and enhance governance of public investments.

• Modernization of SOE governance, including improved board structures, gender representation targets, and mandatory adoption of international financial reporting standards (IFRS).

• Tax base expansion and stronger international tax cooperation, supporting fiscal sustainability and fair revenue collection.

• Enhanced anti-corruption measures, including a new conflict-of-interest law and modernization of national audit systems.

These reforms are designed to make public institutions more efficient, transparent, and responsive to citizens while attracting greater private investment.

Supporting WTO Accession and Global Integration

A key priority of the program is to align Uzbekistan's economic legislation and trade frameworks with international norms as the country moves closer to accession to the World Trade Organization (WTO). This alignment will strengthen Uzbekistan's participation in global markets, open new trade opportunities, and enhance investor confidence.

By adopting international trade and investment standards, the reforms aim to facilitate smoother cross-border trade, reduce barriers to market entry, and attract export-oriented industries. This marks a significant step in Uzbekistan's ongoing transformation from a centrally planned economy toward a more dynamic and globally integrated market system.

Social Protection and Inclusive Development

Recognizing the human dimension of economic reform, ADB's program includes targeted social protection measures to mitigate the short-term impacts of restructuring on vulnerable populations. The initiative seeks to ensure that economic modernization translates into inclusive and equitable growth, providing safety nets for low-income households and retraining opportunities for workers affected by reforms.

These measures support Uzbekistan's broader vision of social cohesion and equitable prosperity, ensuring that the benefits of transformation are widely shared across society.

A Milestone in ADB–Uzbekistan Partnership

The approval of this $500 million program comes as ADB and the Republic of Uzbekistan celebrate 30 years of partnership. Since joining ADB in 1995, Uzbekistan has received a total of $14.6 billion in loans, grants, and technical assistance, spanning sectors such as transport, energy, agriculture, and social protection.

Over the past three decades, ADB has been a key development partner in supporting Uzbekistan's market transition, infrastructure modernization, and policy reform agenda, helping to build institutional capacity and strengthen governance systems.

Toward a More Competitive and Resilient Uzbekistan

The Economic Management Improvement Program (Phase 2) represents a pivotal step in Uzbekistan's reform journey. By deepening structural reforms, improving fiscal accountability, and advancing green and inclusive growth, the program aims to lay the groundwork for sustainable prosperity and position Uzbekistan as a competitive economy integrated into global markets.

Through continued partnership with ADB, Uzbekistan is charting a clear path toward economic modernization, global competitiveness, and inclusive development — a transformation driven by strong governance and a vision for shared growth.