Jamshid Kuchkarov: Borrowing abroad is necessary, not shameful

Uzbekistan requires economic support to establish and maintain domestic infrastructure and ensure sustainable growth, which is why external borrowing is necessary, and there is no shame in it. Deputy Prime Minister Jamshid Kuchkarov made this statement on June 3 during a discussion on the State Budget at the latest session of the Legislative Chamber.

According to Kuchkarov, the economy demands significant financial resources. A portion of the expenditures related to key state responsibilities — such as infrastructure development, roads, drinking water supply, energy networks, airports, railways, highways, as well as defense and national security — is covered through external debt. For example, commercial banks need long-term funding to issue mortgage loans for newly constructed apartments, which is also financed via external borrowing.

As of the end of 2024, Uzbekistan’s external debt stood at $33.7 billion, while internal debt totaled $6.5 billion, bringing the total to approximately 35 percent of the country’s GDP. By international standards, this level of debt is considered moderate.

As of April 1 this year, Uzbekistan’s public debt amounted to $42.4 billion. Of this, external debt made up $35.6 billion, and internal debt stood at $6.9 billion, equivalent to 33.5 percent of the projected GDP for 2025, which is still within internationally accepted limits.

The legislation on public debt stipulates that total public debt should not exceed 60 percent of GDP. Kuchkarov emphasized that every borrowed dollar is closely scrutinized, with specific attention paid to its intended use.

“Be it cities, villages, or makhallas—everywhere is becoming more prosperous, and a portion of those expenses is funded through external borrowing. If I may say so, there is nothing shameful about this. Those who criticize the increase in debt should also acknowledge that Uzbekistan’s GDP has reached $115 billion today,” Kuchkarov said.

It is worth noting that the Central Bank’s report, Balance of Payments, International Investment Position, and External Debt of Uzbekistan, indicated that by the end of 2024, the country’s total external debt stood at $64.1 billion (55.7 percent of GDP). Of that, government external debt was approximately $33.9 billion (29.5 percent of GDP), while corporate external debt totaled $30.2 billion.