EBRD Outlines Contours for Creating a Modern Pension System in Uzbekistan
Economy
Dynamic structural reforms and consistent improvements in corporate governance have enabled Uzbekistan to establish itself on the global investment map in the shortest possible time; however, to attract the largest international players, it is critically important for the republic to build a strong domestic investor base and modernize its financial sector. This conclusion was reached by participants during a specialized session at the Tashkent International Investment Forum. Renowned international experts emphasize that an external investment narrative will not yield long-term success without the parallel development of national institutions for long-term savings, life insurance, and capital markets.
Speaking at the forum, Francis Malige, Managing Director and Head of the Financial Institutions Group at the European Bank for Reconstruction and Development (EBRD), pointed to the phenomenon of an "inverted perspective" on risk perception, where frontier markets appear excessively dangerous to foreign analysts only until they visit the country in person. Data transparency, predictability of state policy, and a level playing field for private and state-owned businesses remain immutable demands of investors amidst deteriorating geopolitical environments and the return of economic and financial sovereignty issues to the global agenda. Concurrently, the successful listing of the National Investment Fund of Uzbekistan (NIFU) on a reputable stock exchange clearly demonstrated how high-quality data alters a nation's image in the eyes of global capital.
Nevertheless, the EBRD representative highlighted several constraints holding back the influx of capital into the country. Currently, the republic's financial sector is still heavily dominated by state-owned banks, private banking institutions remain too small, and there are no significant listings of leading financial organizations on the stock market. Francis Malige strongly recommended that Uzbekistan leverage its unique demographic advantage—a high ratio of working citizens to retirees—and avoid repeating the mistakes of European countries that built their pension systems without considering demographic shifts. According to him, global investment funds only enter domestic markets that are already functioning and active.
The republic's government promptly responded to the recommendations of international partners. Advisor to the Minister of Economy and Finance, Jasurbek Karshibaev, confirmed the authorities' full solidarity with the outlined strategy, noting that systematic work is underway in the country to update macroeconomic benchmarks, encourage state-owned enterprises to enter capital markets, and improve transparency standards. It is worth noting that the EBRD demonstrates record volumes of financing for Uzbek projects, integrating deeply into the renewable energy and critical raw materials sectors.
Nevertheless, the EBRD representative highlighted several constraints holding back the influx of capital into the country. Currently, the republic's financial sector is still heavily dominated by state-owned banks, private banking institutions remain too small, and there are no significant listings of leading financial organizations on the stock market. Francis Malige strongly recommended that Uzbekistan leverage its unique demographic advantage—a high ratio of working citizens to retirees—and avoid repeating the mistakes of European countries that built their pension systems without considering demographic shifts. According to him, global investment funds only enter domestic markets that are already functioning and active.
The republic's government promptly responded to the recommendations of international partners. Advisor to the Minister of Economy and Finance, Jasurbek Karshibaev, confirmed the authorities' full solidarity with the outlined strategy, noting that systematic work is underway in the country to update macroeconomic benchmarks, encourage state-owned enterprises to enter capital markets, and improve transparency standards. It is worth noting that the EBRD demonstrates record volumes of financing for Uzbek projects, integrating deeply into the renewable energy and critical raw materials sectors.
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