Explanation given on the growth of Uzbekistan’s external debt

Earlier reports stated that as of the first nine months of 2025, Uzbekistan’s total external debt had reached $75.4 billion. The Ministry of Investments, Industry and Trade has published an explanatory note addressing the growth of the country’s external debt and detailing which sectors the funds are being allocated to.

According to the ministry, the core principle is straightforward: the purpose of attracting investments and resources is to improve the population’s standard of living.

“This is not about lofty reports or abstract figures, but about tangible improvements that people can feel in their daily lives—jobs, household incomes, infrastructure, access to clean drinking water, energy, transport, and quality social services,” the statement said.

The ministry noted that the economic rationale behind external financing is also clear. For the economy to grow faster, it needs resources such as capital, technology, equipment, and access to new markets. If a country stops attracting resources, growth slows down: fewer jobs are created, and it becomes more difficult to upgrade roads and social infrastructure, expand water supply systems, and ensure affordable energy.

For this reason, Uzbekistan has been consistently attracting investment to accelerate economic development, ensure GDP growth, and ultimately improve quality of life and life expectancy. Since 2020, average life expectancy has steadily increased, rising from 73.4 years to 75.1 years in 2024.

“At the same time, people care not about slogans, but about concrete, measurable results that can be seen and assessed,” the ministry emphasized.

As of October 1, 2025, Uzbekistan’s total external debt amounted to $75.4 billion. Of this, $37.4 billion accounts for public external debt, while nearly $38 billion represents the debt obligations of private and state-owned enterprises without state guarantees, classified as corporate debt.

According to the explanatory note, under international classifications Uzbekistan’s public debt level is considered moderate and manageable. Public external debt of $37.6 billion is equivalent to approximately 26 percent of GDP, which is significantly below the threshold levels commonly regarded as potentially risky for macroeconomic stability.

Projects implemented using public debt funds between 2017 and 2025 include the following:

• 1,564 kilometers of highways reconstructed;
• 470 kilometers of railway lines electrified;
• 6,793 kilometers of drinking water networks and 664 kilometers of wastewater networks built;
• 96 kilometers of heating pipelines, 1,286 individual heating units, 166 water distribution facilities, and 31 wastewater pumping stations constructed;
• 2,737 MW of additional power generation capacity created and 1,106 kilometers of high-voltage transmission lines installed;
• an additional 2,084 MW of capacity launched, along with annual production of 16,423 million kWh of electricity and 551.8 thousand Gcal of thermal energy.

Transport and urban services modernization included the procurement of:

• four Boeing 787-8 aircraft;
• two Talgo-250 high-speed passenger trains;
• 30 electric locomotives;
• 70 metro cars and 29 trainsets;
• 1,900 buses;
• 1,000 ambulances;
• 541 waste collection vehicles;
• 13 heating boilers.

In the education and social sectors:

• 119 educational and research laboratories were established at 60 higher education institutions;
• 6,213 state preschool institutions were equipped with furniture and teaching materials, along with 4,940 units of office equipment.

In agriculture and water management:

• 1,593.1 kilometers of canals were rehabilitated;
• 3,396 hydraulic facilities were modernized;
• 423 vertical wells were drilled;
• modern greenhouses covering 2,200 hectares and intensive orchards spanning 12,600 hectares were established;
• cold storage facilities with a total capacity of 334,900 tons were built;
• enterprises with processing capacity of 258,200 tons of agricultural products were launched;
• livestock facilities were established with capacity for 12.3 million poultry, 5,752 sheep, and 26,300 cattle, as well as garment and textile enterprises producing 90.2 million units annually.

The ministry clarified that these figures reflect debt funds already utilized for project implementation. Many infrastructure and social sector modernization projects are still ongoing, and additional benefits are expected as they are completed.

It was also reported that as a result of comprehensive measures implemented between 2017 and 2025, more than two million jobs were created, export volumes increased by 270 percent, and GDP per capita rose by 418 percent.

“However, the most important point is that attracting resources must be carried out strictly under clear rules, transparency, and effective oversight. As emphasized by the head of state, members of parliament will monitor projects throughout their entire life cycle—from selection and tender processes to implementation and final outcomes. Information on project status, stages, and progress will be published in real time, allowing for clear oversight of how tenders are conducted and obligations fulfilled,” the statement said.

According to the ministry, Uzbekistan’s approach to investment is clear: resources are essential for growth, but they must be accompanied by strict control, transparency, and measurable results that serve public interests. All processes are being conducted on this basis—openly, step by step, and with clearly defined responsibilities.

For reference, during the first nine months of 2025, public debt increased by more than 10 percent, while corporate debt rose by nearly 27 percent. At the same time, quarterly growth rates of public external debt attracted from abroad showed a noticeable slowdown: growth stood at 5.7 percent in the first quarter, 3 percent in the second quarter, and 1.2 percent in the third quarter.