Uzbekistan’s procurement agency seeks to reshape business access

Tashkent, Uzbekistan (UzDaily.uz) — Public procurement is one of the key drivers of Uzbekistan’s economy, with the potential to boost domestic production or become a barrier if managed inefficiently.

The Industrial Cooperation and Public Procurement Agency has become a key institution in this ecosystem, with its activities reaching a new level in 2026.

As chairman of the Association of Public Procurement Participants, I have closely followed the transformation of the sector. What has the agency achieved since the beginning of the year, how long has it existed and what reforms can businesses expect in the near future?

Institutional foundation: an inside view

The body coordinating industrial cooperation and public procurement in its current form has been operating for a relatively short period.

Its institutional foundation was established as part of the large-scale administrative reforms of recent years. In my view, the agency was created with a clear strategic objective: to bring localization chains and transparent mechanisms for distributing government orders under unified management. This made it possible to directly link domestic government demand with the capabilities of local factories and plants.

What has been achieved since the beginning of 2026

The first half of 2026 was a period of intensive work for the agency in two areas: market digitalization and systematic direct dialogue with businesses.

Large-scale procurement and budget savings

During the first six months of 2026, the total volume of public procurement in Uzbekistan reached 188.4 trillion soums. About 113 trillion soums of this amount accounted for transparent competitive procurement, generating 7.8 trillion soums in savings for the state budget. These figures demonstrate the scale of the market that domestic businesses are seeking to enter.

Unprecedented regional coverage

The agency moved beyond its offices and launched a systematic “Open Dialogues” mechanism. Meetings with manufacturers were held in all 208 districts and cities of Uzbekistan, bringing together 2,710 entrepreneurs.

Specialized sectoral sessions were also held for agriculture, food and light industries, and pharmaceuticals. Our association records that 20 of 30 pressing issues were resolved directly on the spot. Across the country, 155 of the 447 problems raised by businesses were resolved promptly, while strict monitoring was established for the remaining issues.

Launch of a package of preferences

Under Presidential Decree No. UP-17 of 4 February 2026, the agency introduced a number of support measures that the association views very positively.

Price preferences mean that when a local company competes with a foreign supplier, it automatically receives a price advantage of 8% to 15%.

Under the rating-based benefits, manufacturers with high and medium sustainability ratings receive a 50% discount on trading platforms’ intermediary fees and are exempt from providing additional security.

Local auctions have also been launched, with bidding limited exclusively to domestic companies.

For goods with a localization level of at least 30%, advance payments can be made in proportion to the level of localization.

Strategic plans: what comes next

Despite the progress achieved, the agency’s leadership and the association agree that significant untapped potential remains in the system.

The statistics are telling. Of the 646,000 active business entities, only half — 344,000 — are registered in electronic public procurement systems. Just 126,000 actually participate, while only 36,000 companies win tenders and conclude contracts.

The following measures are planned for the second half of 2026 and beyond.

Engaging small, medium-sized and women-owned businesses

The agency is preparing a large-scale educational program across all regions to improve entrepreneurs’ digital literacy and train them to work on electronic trading platforms. The overall goal is to double the number of active suppliers among small and medium-sized businesses.

Removing barriers and payment delays

Based on requests collected across the regions, the agency is systematizing the systemic problems faced by businesses. Regulatory amendments are being prepared that would establish strict liability for government customers that artificially delay payments under contracts or impose unjustifiably high requirements in tender documentation.

Legislative reform

Together with relevant ministries, the agency is working on a package of amendments to procurement legislation. The aim is to automate product moderation on electronic platforms and simplify certification requirements for local manufacturers.

Developing domestic cooperation

The practice of establishing long-term supply chains under the “customer — local manufacturer” model will continue. Under this approach, major state-owned holdings guarantee in advance the purchase of products from local enterprises.

Market expectations: looking ahead

Uzbekistan’s business community has high expectations for the agency. The main expectation is that it will preserve and strengthen its position as an open government institution that regularly consults market participants and experts before introducing regulatory changes. Transparent feedback will allow the government to make balanced and thoroughly analyzed decisions.

As an expert, I consider it fundamentally important that future reforms should not be based on mechanically copying foreign models, but instead on a careful analysis of actual statistical data and the history of the domestic market, an understanding of the local business mentality and the specific characteristics of doing business in Uzbekistan’s regions, and a fair balance between the interests of the state, major customers and small manufacturing enterprises.

Conclusion

In my view, Uzbekistan’s Industrial Cooperation and Public Procurement Agency is steadily transforming from a regulatory body into a service-oriented institution for businesses. The shift from resolving individual problems to introducing systemic legislative changes is precisely what the domestic market has been waiting for.

The Association of Public Procurement Participants is ready to provide comprehensive expert support. Continued cooperation between the agency, analysts and businesses themselves could make Uzbekistan’s procurement system more fair, transparent and efficient.

Anvar Omanullayevich Mukhitdinov

Chairman, Association of Public Procurement Participants