BAKU, Azerbaijan, July 21. Uzbekistan’s
President Shavkat Mirziyoyev criticized the rise in production
costs at a number of large state-owned enterprises, noting that
inefficiency leads to a decline in profitability.


This was reflected in a statement released by the press office
of the Uzbek President, citing Mirziyoyev’s remarks at a government
meeting dedicated to reviewing economic performance for the first
half of 2026 and setting priorities for the year ahead.


According to the statement, the government has shifted from
evaluating companies based on overall spending reductions to
analyzing the production cost of individual goods, a methodology he
said provides a more accurate picture of operational
efficiency.


"In the past, sectors reported lower costs by reducing overall
expenditures as a percentage," Mirziyoyev said. "Analyzing the
production cost of each unit now reveals the real situation."


The review found that production costs have increased across
several of Uzbekistan's largest industrial enterprises. At the
Navoi Mining and Metallurgical Company (NMMC), the production cost
of one ounce of gold rose by 8.2%, while the company's overall
expenses increased by 6.2 trillion soums (about $517.7 million), or
22%, compared with the previous year.







The president also cited rising costs at other strategic
enterprises. At the Uzbek Metallurgical Plant, the production cost
of steel grinding balls increased by 5.4%, while at Uzkimyosanoat,
the cost of producing urea rose by 11.1% and ammonium nitrate by
8.3%.


Mirziyoyev said the government is also working with global asset
manager Franklin Templeton, which has completed an assessment of 13
major state-owned companies scheduled for initial public offerings
(IPOs). The review is expected to help improve corporate governance
and operational efficiency ahead of their planned listings.


The president also highlighted operational shortcomings at
Uzbekistan Airways, saying inefficient route planning, long
intervals between flights, frequent delays and a lack of
competition in catering and maintenance services are costing the
airline an estimated $120 million in annual revenue.


The findings form part of Uzbekistan's broader efforts to reform
state-owned enterprises, improve productivity and prepare major
companies for greater private-sector participation. The government
has made corporate governance reforms, cost optimization and
privatization key pillars of its economic modernization agenda as
it seeks to attract investment and strengthen the competitiveness
of strategically important industries.