The government’s policy measures, facilitated through this operation, focus on mitigating the impact of energy tariff increases on low-income households, protecting women from workplace harassment and violence, and enhancing competition in strategic sectors such as telecommunications, agriculture, and energy. The reforms are also designed to expand Uzbekistan’s international trade and improve the efficiency of state-owned enterprises.

The $800 million package provides highly concessional loans, offering low-cost, long-term repayment conditions that are more favorable than those available in international financial markets. This arrangement will reduce debt servicing costs, enabling the government to allocate additional resources toward social and economic priorities.

The World Bank’s support will help implement urgent policy measures across several strategic areas:

1. Social protection: Compensation payments to low-income households will be increased to offset rising electricity, heating, and gas tariffs. Annual cash transfers will rise from UZS 270,000 per family to UZS 1,000,000.

2. Economic opportunities for women: Legislation and mechanisms will protect women from sexual harassment and workplace violence and prohibit employers from refusing to hire, reducing wages, or dismissing women due to pregnancy or childcare responsibilities.

3. Expanding social services: Conditions will be created to allow private and non-governmental providers to deliver accredited social services to vulnerable groups, improving access and quality.

4. State-owned enterprise (SOE) reform: A National Investment Fund (NIF) will be established to manage and privatize SOEs more effectively. An independent telecommunications regulator will limit state dominance in broadband and mobile markets, encouraging private sector investment.

5. Agriculture: Agricultural risk insurance will be introduced, alongside reforms in the cotton sector. These include a more flexible farmgate pricing mechanism and enabling textile enterprises to purchase cotton directly from any farmer.

6. Trade liberalization: