Central Bank calls for reducing tariff and non-tariff barriers in trade

Timur Ishmetov, Chairman of the Central Bank of Uzbekistan, outlined the fundamental factors driving price increases, emphasizing the need to strengthen competition, liberalize foreign trade by reducing tariff and non-tariff restrictions, decrease import concentration, ensure energy stability, and improve transport infrastructure to bring inflation down.

Photo: KUN.UZ

To maintain price stability in Uzbekistan, it is necessary to address the supply-side fundamental factors of inflation, Ishmetov said at a press conference on October 24.

According to the Central Bank Chairman, tackling the root causes of inflation requires:

strengthening competition in the domestic market;
liberalizing foreign trade by gradually reducing tariff and non-tariff restrictions;
reducing concentration levels in imports;
ensuring uninterrupted energy supply to increase the availability of goods and services;
developing adequate transport infrastructure capacity.

He also stressed the importance of accelerating the transformation and privatization of state-owned enterprises and reducing the use of directive and preferential lending.

Improving the capital market is another key element, as it enhances the effectiveness of monetary policy decisions.

“Successfully implementing these structural reforms will increase the potential and productivity of economic sectors, ensuring low and stable inflation while supporting high economic growth,” Ishmetov said.

The Central Bank expects inflation to hover around 8 percent by the end of 2025.