President Calls for Faster Industrial Growth and Greater Efficiency of State-Owned Enterprises
Uzbekistan
Industrial production, exports, the efficiency of state-owned enterprises and tax revenues were among the key topics discussed during a videoconference chaired by the President. The Head of State called for eliminating systemic shortcomings, accelerating economic reforms and ensuring that planned targets are achieved across all sectors.
The President recalled that following the first-quarter results, personnel decisions had been taken regarding officials who failed to meet industrial production and export targets. Although most regions subsequently fulfilled their six-month forecasts, industrial growth and export performance remain below expectations in several districts and cities. The Prime Minister was instructed to assess the performance of 17 regional leaders, with additional personnel measures to be considered if no improvement is achieved by the end of the nine-month period.
Special attention was paid to the performance of strategic enterprises. The analysis revealed rising production costs at several major companies, including the Navoi Mining and Metallurgical Company, the Uzbekistan Metallurgical Plant and enterprises of Uzkimyosanoat. The President emphasized the need for more efficient cost management and greater competitiveness.
According to an analysis conducted by Franklin Templeton, major state-owned companies have significant untapped potential. In particular, Uzbekistan Airways is estimated to lose around $120 million in annual revenue due to inefficient route planning, flight delays and limited competition in onboard catering and maintenance services. The report also noted that the market value of Regional Electric Networks could potentially double, while Uzbekistan Airways could increase its value by about 40% and Uztelecom by 50% through further reforms.
The meeting also addressed losses in the energy sector. During the first half of the year, electricity losses reached 17.2%, or 4.8 billion kWh, while natural gas losses totaled 797 million cubic meters. It was noted that approximately $8 billion will be required over the next decade to modernize the country's energy infrastructure.
Tax administration was another focus of the discussion. Although tax revenues increased by 27%, exceeding 130 trillion soums, only 40% of the annual target for additional revenues has been achieved. Following the review, the First Deputy Governor of Bukhara Region was dismissed. Regional authorities and tax agencies were instructed to ensure full tax collection from major taxpayers.
The President also highlighted the issue of idle industrial capacity. Due to prolonged legal disputes over loan obligations, 16 textile enterprises have effectively suspended operations, resulting in the loss of 5 trillion soums in production capacity and $400 million in export potential. The Government was instructed to restore the operations of these enterprises.
It was further reported that production has declined by 11 trillion soums across 57 sectors and 76 regional enterprises since the beginning of the year. The Deputy Prime Minister was instructed to conduct a detailed review of each enterprise within ten days and prepare measures to restore production.
The meeting also announced a new phase of the state privatization program. It предусматривает the sale of 1,300 real estate assets, 8,000 hectares of land, and state stakes in 66 enterprises. For entrepreneurs purchasing state property, the required down payment will be reduced from 30% to 15%, while the remaining balance may be paid in installments without interest.
Special attention was paid to the performance of strategic enterprises. The analysis revealed rising production costs at several major companies, including the Navoi Mining and Metallurgical Company, the Uzbekistan Metallurgical Plant and enterprises of Uzkimyosanoat. The President emphasized the need for more efficient cost management and greater competitiveness.
According to an analysis conducted by Franklin Templeton, major state-owned companies have significant untapped potential. In particular, Uzbekistan Airways is estimated to lose around $120 million in annual revenue due to inefficient route planning, flight delays and limited competition in onboard catering and maintenance services. The report also noted that the market value of Regional Electric Networks could potentially double, while Uzbekistan Airways could increase its value by about 40% and Uztelecom by 50% through further reforms.
The meeting also addressed losses in the energy sector. During the first half of the year, electricity losses reached 17.2%, or 4.8 billion kWh, while natural gas losses totaled 797 million cubic meters. It was noted that approximately $8 billion will be required over the next decade to modernize the country's energy infrastructure.
Tax administration was another focus of the discussion. Although tax revenues increased by 27%, exceeding 130 trillion soums, only 40% of the annual target for additional revenues has been achieved. Following the review, the First Deputy Governor of Bukhara Region was dismissed. Regional authorities and tax agencies were instructed to ensure full tax collection from major taxpayers.
The President also highlighted the issue of idle industrial capacity. Due to prolonged legal disputes over loan obligations, 16 textile enterprises have effectively suspended operations, resulting in the loss of 5 trillion soums in production capacity and $400 million in export potential. The Government was instructed to restore the operations of these enterprises.
It was further reported that production has declined by 11 trillion soums across 57 sectors and 76 regional enterprises since the beginning of the year. The Deputy Prime Minister was instructed to conduct a detailed review of each enterprise within ten days and prepare measures to restore production.
The meeting also announced a new phase of the state privatization program. It предусматривает the sale of 1,300 real estate assets, 8,000 hectares of land, and state stakes in 66 enterprises. For entrepreneurs purchasing state property, the required down payment will be reduced from 30% to 15%, while the remaining balance may be paid in installments without interest.
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