World Bank Group Recommends Policy Actions to Boost Private Investment and Create Over 300,000 Jobs in Uzbekistan

Tashkent, Uzbekistan, July 6, 2026 - Uzbekistan can unlock significant private investment, create more and better jobs, and accelerate its transition to a more competitive, private sector-led economy by advancing reforms in logistics, tourism, and pharmaceuticals.

A new Country Private Sector Diagnostic (CPSD) for Uzbekistan, released by the World Bank Group, identifies three sectors - logistics, tourism, and pharmaceuticals -where concrete policy actions can generate commercially viable opportunities for private investment, selected based on their potential to attract private capital, create jobs, and feasibility of reform in the near term. The report finds that if implemented, these reforms could help Uzbekistan attract an estimated $5.2 billion to $6.4 billion in private investment and generate more than 300,000 direct and indirect jobs over the medium term.

Since launching major market-oriented reforms in 2017, the country has transformed its economy by improving the business environment and raising incomes. Building on this progress, Uzbekistan's 2030 Development Strategy sets an ambitious course for continued growth. According to the CPSD, sustaining this momentum will require reinforcing these efforts at the sector level by reducing barriers to competition, addressing skills gaps, and tackling the infrastructure and regulatory constraints that continue to discourage private sector investments.

"Uzbekistan has a major opportunity to unlock more private investment by creating the conditions for firms to grow, compete, and innovate," said Lisa Kaestner, IFC Division Director for Türkiye, Kazakhstan and Uzbekistan. "Targeted reforms in high-potential sectors can help mobilize capital, expand economic opportunities for local enterprises, and generate more and better jobs."

In logistics, the report identifies road freight and warehousing as having significant potential to attract private investment to Uzbekistan. At the same time, developing these segments could strengthening the country's role as a regional trade and transit hub, including along the Trans-Caspian Transport Corridor (Middle Corridor). It argues that streamlining land acquisition and construction approvals, combined with more transparent, digitally enabled access to international freight permits, could attract between $950 million to $1.05 billion in private investment and create up to 108,000 direct and indirect jobs.

In Uzbekistan's tourism sector, the report highlights significant untapped potential in cultural and nature-based tourism. It finds that reforms around land-leasing rules, human capital, and professional site management frameworks could help attract between $3.1 billion and $4.2 billion in private investment. These measures could also support about 180,000 jobs and enable Uzbekistan to broaden its tourism footprint beyond its traditional destinations, moving toward higher value-added segments of the market.

In pharmaceuticals, the CPSD identifies generics and dietary supplements as sub-sectors with private investment potential, driven by growing domestic and regional demand. Building on notable progress in this sector, the report recommends establishing accredited bioequivalence laboratories, further aligning good manufacturing practice (GMP) standards with international benchmarks, enforcing active pharmaceutical ingredient (API) documentation requirements, and streamlining drug registration and approval processes.

Targeted reforms could attract up to $188 million in additional private investment to the sector and create up to 20,000 direct and indirect jobs over the medium term, helping position Uzbekistan as a more competitive regional pharmaceutical supplier.

"The next stage of Uzbekistan's economic transformation will require continued market reforms to unlock the full potential of the private sector," noted Najy Benhassine, World Bank Regional Director for Central Asia. "Greater competition and fewer barriers to business growth will stimulate investment, boost productivity through the adoption of global best practices, and help develop the skilled workforce needed for a modern economy."