Monday, 15, April, 2024

The Asian Development Bank (ADB) has approved a $150 million policy-based loan and a $400,000 grant to improve economic management in Uzbekistan.

The first subprogram of ADB’s Economic Management Improvement Program, Phase 2 continues and deepens ADB’s earlier support in public sector management reforms. The program supports the government’s efforts to reform the legal, regulatory, and institutional framework to strengthen the effectiveness and transparency of fiscal management; improve the governance and operation of state-owned enterprises (SOEs), including antimonopoly systems for promoting competition; and enhance public sector accountability with robust anticorruption and audit systems.

“Uzbekistan has demonstrated strong commitment to reforms that are enabling its transformation to a more open and competitive market economy,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “ADB will continue to help the country achieve this goal while maintaining macroeconomic stability as well as inclusive and sustainable growth.”

The reforms under the first subprogram strengthen the management of fiscal risks and public debt, improve the allocation of public resources through gender-sensitive and green budgeting, and enhance the domestic resource mobilization through information technology-based tax administration. They also expand the coverage of social protection and raise the effectiveness of anticorruption and audit systems.

The program also supports the development and implementation of Uzbekistan’s green economy transition strategy. A clear national plan will help the government meet its commitments under the Paris Agreement, upgrade infrastructure, and train its labor force to obtain the necessary skills required for green jobs.

“The improvements in fiscal transparency, corporate governance, and professional management of SOEs, along with enhanced antimonopoly systems are necessary to generate the fiscal space for public sector investments, improve the quality of public service delivery and create the enabling conditions for private sector development in Uzbekistan,” said ADB Principal Public Management Economist Çiğdem Akın.

The $400,000 technical assistance grant will support the implementation of the reforms.

Latest in Finances