Uzbekistan’s President Signs Decree to Boost Efficiency and Reduce Costs of State-Owned Enterprises

Tashkent, Uzbekistan (UzDaily.com) — President Shavkat Mirziyoyev of Uzbekistan has signed a decree titled “On Measures to Reduce Production Costs and Increase the Efficiency of State-Owned Enterprises.”

The decree is aimed at establishing a more results-oriented management model for state assets and enhancing the competitiveness of domestic producers.

The primary goal is to achieve reduced production costs and improved operational efficiency by 2026 for enterprises where the state holds 50 percent or more ownership. To this end, a set of systemic measures has been outlined, including cost optimization and increased labor productivity.

Specifically, the plan includes regular review of expenditures with a complete budget revision to identify priorities and eliminate inefficient items, as well as the introduction of lean manufacturing principles and standardization systems, which will enhance production processes and reduce costs.

To coordinate these efforts, a Republican Commission on Reducing Production Costs and Improving Efficiency of State Enterprises will be established. The commission will provide methodological support to enterprises in developing cost-optimization programs and facilitate the reduction of accounts receivable and payable through improved financial discipline and mechanisms.

Key organizational measures include reducing the number of managerial staff in state enterprises by up to 10 percent.

Additionally, a range of auxiliary functions will be outsourced, including cleaning and security services, catering, vehicle maintenance, technical and IT support, accounting and legal services, marketing, and call-center operations. This will allow enterprises to focus resources on core production activities and improve overall operational efficiency.