TASHKENT

Uzbekistan plans to reform the country’s service sector by investing $300 million and allowing private businesses to lend offices to public organisations and provide 24-hour services.

The initiative was established under a decree issued by President Shavkat Mirziyoyev, who had made the improvement of the country’s business climate and attracting foreign investors top priorities of his ambitious reform agenda.

The document envisages a two-fold increase of the service sector within the next three years and is aimed at expanding and improving the quality of services in Uzbekistan, which has taken steps to reform its economy.

The $300 million financing will be provided by the country’s Fund for Reconstruction and Development. Uzbekistan’s National Bank for Foreign Economic Activity is expected to attract an additional $200 million from international financial institutions.

The funds will be used to refinance commercial banks for projects to create tourist, transport, medical and educational facilities, as well as large shopping centres in 28 large and medium-sized cities.

Starting from July 1, Uzbekistan will introduce a rating of the level of development of the service sector in the regions. The government will also abolish the obligatory participation of local government bodies in the authorised capital of newly created food markets and shopping malls.

One of the main innovations is “the widespread introduction of a system for accommodating the state bodies and organisations in buildings of business entities on a rental basis with the optimisation of the construction of buildings and structures within the framework of programmes for the development of social and industrial infrastructure.”

At the initial stage, an inventory of land plots, buildings and structures where state bodies and organisations are located will be conducted in the three districts of Tashkent. Their land plots and buildings will be scrutinised, and proposals for their optimisation will be submitted to the government.