“UzAuto Motors” and “Navoiyazot” to be prepared for privatization

In Uzbekistan, “UzAuto Motors,” “Navoiyazot,” and thermal power plants are being prepared for privatization. This was discussed during a presentation on proposals to reduce state participation in the economy and accelerate privatization processes, reviewed by President Shavkat Mirziyoyev on April 6.

According to the report, the state’s share in the economy currently stands at 42 percent, while the number of enterprises with state participation amounts to 1,685. Last year alone, nearly 30 trillion soums worth of state assets were privatized, generating more than 10 trillion soums in budget revenues. The volume of land sales has also steadily increased, reaching 6 trillion soums.

A system of incentives for privatization has been introduced, leaving 2.6 trillion soums in the regions and 7 billion soums at the mahalla level. State-owned enterprises paid 49 trillion soums in dividends to the budget. Overall, over the past five years, the number of state enterprises has decreased by 60 percent due to privatization.

The meeting, held in a critical tone, also highlighted unresolved issues in the sector. In particular, it was emphasized that requirements must be strengthened to preserve jobs during privatization, ensure the introduction of modern technologies by new owners, and improve production efficiency. The fact that the number of inefficient state enterprises reached 362 last year indicates the need to further accelerate reforms in this area.

It was noted during the presentation that modern digital tools and artificial intelligence are not being sufficiently utilized in the system for analyzing state-owned enterprises. In 2024, 451 financially distressed enterprises recorded losses of 14 trillion soums, while in the previous year, 362 enterprises incurred losses totaling 4 trillion soums. In this regard, the need to introduce a new mechanism for in-depth analysis of state enterprises, assessment of their financial stability, and early identification of problems was emphasized.

It was also noted that an analytical approach has not been sufficiently applied in the privatization process. Going forward, the process will be organized based on a sectoral approach, with each sector analyzed separately, its socio-economic impact assessed, the competitive environment studied, and proposals developed on that basis.

It was highlighted that existing opportunities for the efficient use of state property in the regions and the involvement of idle spaces in economic activity are not being fully utilized. In this regard, it was proposed to gradually transfer state-owned real estate to a unified management system and reduce the average space per employee from 27 square meters to 12–15 square meters. This would allow 4.9 million square meters of space to be brought into economic circulation, vacant buildings to be offered for sale or lease, and maintenance and utility costs to be reduced.

Special attention was also given to land plots allocated to entrepreneurs but not fully utilized in economic activity. In particular, it was noted that out of 11,400 hectares of land allocated between 2022 and 2025, economic activity has not been fully launched on 3,100 hectares.

Therefore, it was emphasized that there is a need to introduce online monitoring of the actual status of land plots, auction them based on ready-made project proposals, and strengthen requirements for investment commitments. To this end, it was proposed to integrate information systems such as “E-auksion,” “Yerelektron,” the Uzbekcosmos agency, “Shaffof qurilish,” and “UzKAD” to identify underutilized land more effectively.

It was also instructed to enhance the role of local authorities in bringing such land into economic circulation. From now on, land plots for business purposes will be auctioned as ready business projects together with the necessary permits.

In addition, information was provided on preparations for the privatization of major assets, including “UzAuto Motors” and its affiliated enterprises, “Navoiyazot,” and thermal power plants.

A proposal was also put forward to establish a digital technologies project office within the State Assets Management Agency. Within this system, all privatization processes will be monitored online, and elements of artificial intelligence will be introduced into the financial analysis of state enterprises and the distribution of revenues.

The head of state gave relevant instructions to officials to further reduce state participation in the economy, ensure efficient use of assets, and accelerate privatization processes based on modern approaches.