ISLAMABAD, January 6. /Dunyo IA/.  Pakistan’s newspaper “The News” has published an article titled “Uzbekistan’s economic transformation”, reports Dunyo IA correspondent.

The article notes that a spectacular outcome of these reforms was the emergence of five Central Asian states as independent and sovereign nations. Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan gained independence in August 1991, and Kazakhstan declared independence a few months later. Gradually, these nations began to develop and over the past 25-30 years have evolved into, or are becoming, strong economies.

 “Uzbekistan is a case study. Its economy was once a state-controlled, agrarian-industrial system, highly dependent on cotton and natural resources. Today, the economy is in a rapid growth mode, developing into a diversified, market-oriented system, with strong growth in the services and industrial sectors and a substantial increase in GDP and living standards”, - author writes.

The article further underlines that over the last 7-8 years, structured reforms have liberalised the economy and driven unprecedented progress. Foreign investors are being encouraged through pragmatic government policies ranging from independent energy regulation to key privatisation projects in strategic sectors. Spearheading this process has been the ‘Uzbekistan-2030’ strategy, a future-focused roadmap designed to transform every facet of the national economy. The envisaged theme is “The Big Country with Big Opportunities - Reform in Action”. At its core, it is a commitment to fostering a dynamic, innovation-led environment that champions private enterprise, green energy and digital technology.

According to the author, one key litmus test of global recognition is usually the interest of foreign investors. Over the past seven years, Uzbekistan received $120 billion in foreign direct investment, including a significant $37 billion in 2024 alone. FDI inflows are increasing due to growing confidence in the government, whose policies are driven by progressive amendments in the legal framework along with well-defined initiatives aimed at attracting foreign companies.

Particular attention is given to strategically important sectors such as renewable energy and mining, which have generated strong interest among leading international corporations. In addition, interest rates below 10 percent have helped stimulate economic activity and expand access to credit for both domestic and foreign businesses.

The publication also highlights Uzbekistan has announced new investment policy priorities to attract an additional $50 billion in foreign investment in 2026. The stipulation is that future investment must not only finance projects but also bring advanced technologies and boost the production of high-value-added goods. Uzbekistan is also promoting public-private partnerships, viewing them as essential to improving public services and attracting critical investment and expertise. Today, the country has seen significant growth in PPP projects, with more than 400 infrastructure initiatives valued at approximately $16 billion. This marks a radical departure from the past, when there was little private sector interest in such projects.

“Pakistani decision-makers can learn much from Uzbekistan’s experience. Emphasis should be placed on a market-oriented economic framework that encourages private-sector participation and investment. When Tashkent reduced key tax rates, such as value-added tax, corporate income tax, and property tax, from more than 20 per cent to 12 per cent, the treasury doubled its tax collection”, - article concludes.