February 11, 2022

Reforms of state institutions

On February 8, 2022, the Resolution of the President of the Republic of Uzbekistan No. PP-123 “On measures to accelerate the reform of state institutions” (hereinafter referred to as “Resolution No. PP-123“) was adopted. Resolution No. PP-123 was adopted in order to increase the efficiency of the use of state property, introduce modern management methods, principles of openness and transparency, create broad opportunities for private capital to participate in the activities of state institutions, as well as reduce state participation and create a competitive environment in the economy.

In accordance with the Resolution № PP-123:

  1. from March 1, 2022 to August 1, 2023 to hold, as an experiment, external audit, including the subject matter of the availability of the property, its current status and the effects of fulfillment of obligations, government agencies, income from sales of products (works, services) which exceed a thousand times the size of the base value;
  2. prohibits state agencies for the establishment and participation in the Charter Fund (Charter capital) of business entities, except for the cases stipulated by the decisions of the President and the Cabinet of Ministers;
  3. an inventory of all state institutions is carried out by September 1, 2022;
  4. a list of state institutions subject to abolition due to non-implementation of activities is approved within a month;
  5. by September 1, 2022, measures are being taken to privatize or abolish, in accordance with the established procedure, state institutions operating in highly competitive industries where five or more private business entities operate on the same commodity market, as well as non-core assets belonging to them;
  6. it is envisaged that ministries, departments and public authorities will place financial indicators of state institutions in their composition, including information on proceeds from the sale of products (works, services) at the end of each quarter and year.