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Uzbekistan is pushing ahead with a sweeping overhaul of financial reporting across its state-owned enterprises (SOEs), as part of a wider campaign to improve transparency, attract investment, and modernize corporate governance.
Under reforms mandated by Presidential Decree No. 4611, a growing number of major enterprises are now required to produce financial statements in line with International Financial Reporting Standards (IFRS). The first wave of compliance, launched in 2021, is beginning to bear fruit, with government officials hailing early successes and promising full adoption across all largest SOEs by the end of 2025.
A recent seminar in Tashkent brought together finance leaders from SOEs, international audit firms, and regulators to share progress and lessons learned. Officials from the Ministry of Economy and Finance noted that 20 major state enterprises are on track to submit IFRS-compliant reports by the end of this year.
Among the most recent adopters is Navoiyuran, the state uranium producer, which has already published two consecutive years of IFRS financials. The company received an unqualified audit opinion from Deloitte, marking a significant milestone. Its statements included fair-value assessments of key assets – an essential step for the company’s ambitions to secure a credit rating from Fitch. As a result, on 13 June Fitch Ratings has published State Enterprise Navoiyuran’s Long-Term Issuer Default Rating (IDR) of ‘BB-‘ with a Stable Outlook. The Standalone Credit Profile (SCP) is ‘BB-‘.
“This is not just about ticking boxes,” said Bobur Abdinazarov, Chairman of UzAssets. “It’s about laying the foundations for greater accountability, market confidence, and eventual investment.”
The IFRS push is part of a broader reform agenda backed by the Asian Development Bank and the European Bank for Reconstruction and Development. Alongside new accounting standards, SOEs are being required to implement governance frameworks covering anti-corruption measures, internal audits, and whistleblowing protections.
The Ministry of Economy and Finance has translated and endorsed more than 60 IFRS documents into Uzbek, while working with the Big Four accounting firms to train finance teams and build capacity. Auditors have been deployed to guide first-time adoption and ensure quality control during the transition period.
In the mining sector, beyond uranium, companies such as Navoi Mining and Metallurgical Complex (NMMC) and Almalyk Mining and Metallurgical Complex (AMMC) have already institutionalized IFRS reporting, with their financial statements audited by Big Four firms for several consecutive years. With a strategic role in Uzbekistan’s gold, copper metals output, NMMC and AMMC is seen as a bellwether for sector-wide financial reform. Greater transparency is a prerequisite for foreign investor interest in the country’s vast mineral reserves.
Uzbekneftegaz, the largest company in the country’s oil and gas sector, adopted IFRS in 2018. Its financial statements for the year ended 2024 were issued in April 2025, setting a new benchmark for accelerated financial reporting among SOEs. This marked a significant improvement, as the company had historically released its audited financial statements in July. Other key sector players, including Uztransgaz and Hududgazta’minot, also report under IFRS. However, significant delays persist in their period-end closing and issuance of audited IFRS financial statements, which limit the flexibility for those companies to have efficient communication with investors. The reforms are seen as critical to attracting capital for infrastructure upgrades and gas export expansion.
In manufacturing, the state has earmarked enterprises in textiles, chemicals, and automotive production for IFRS alignment. Firms such as UzAuto Motors, a key employer and export contributor, have been issuing IFRS-based financials for several years as part of broader engagement with capital markets and preparation for future privatisation initiatives.
The energy sector, which comprises strategic and infrastructure-related assets is undergoing a fundamental transformation. Following the unbundling of Uzbekenergo in 2019, the sector was restructured into separate entities for generation (Thermal Power Plants JSC), transmission (National Electric Grid of Uzbekistan JSC), and distribution (Regional Electric Networks JSC). These entities have been publishing IFRS-compliant financial statements for several years and are actively preparing for partial privatization as part of Uzbekistan’s broader energy sector reform agenda.
The transport and logistics sector, particularly Uzbekistan Railways and the national airline Uzbekistan Airways, is also part of the IFRS drive. IFRS-based reporting has already become standard practice for Uzbekistan Airways, positioning the company among SOEs in terms of financial transparency. Uzbekistan Railways, after undergoing diagnostic assessments and internal restructuring, is set to publish its first IFRS-adopted financial statements by the end of 2025. These efforts aim to enhance transparency, financial accountability, and investment attractiveness across one of the country’s most capital-intensive sectors.
Yet challenges remain. Some enterprises are struggling to find qualified personnel, and the rollout of modern internal controls has been uneven. In many cases, there are still significant delays in the preparation and issuance of audited financial statements. To support transparency, improve oversight, and build investor confidence – particularly in the context of upcoming privatizations – a fast financial close process and full transition to IFRS are essential. Observers caution that sustained political will – and continued investment in governance systems – will be crucial to meeting the 2025 deadline.
Still, the government insists it is on track. “We are building a culture of financial discipline,” continues Mr Abdinazarov. “And that starts with telling the truth on the balance sheet.”
As Uzbekistan’s state sector prepares for potential privatisations and greater engagement with international markets, the ability to produce credible, transparent financial data could prove critical. With the 2025 deadline looming, all eyes will be on whether this ambitious shift from former government secrecy to global accounting standards can hold.
