In Uzbekistan, the system for allocating budget funds is being reshaped ahead of a major game: President Shavkat Mirziyoyev signed Decree UP-259, launching a sweeping reform of public procurement. The document published on Lex.uz tightens rules for state customers while expanding opportunities for the private sector. This was reported by upl.uz.reports.
The strategic goal is clear: by 2030, raise the share of competitive procurement procedures to 80%. According to preliminary estimates by economic and financial authorities, this could save the budget about 25 trillion soums in the medium term. At the same time, the share of locally produced goods in supplies is expected to rise to 98%, while small and medium-sized business activity is projected to double.
The biggest shift takes effect on January 1, 2026: the list of goods and services that could previously be purchased via direct contracts will be abolished. From then on, such deals will almost entirely go through competitive bidding, with exceptions limited to very narrow cases explicitly listed in the basic Law “On Public Procurement.”
Drafting regulations that allow direct contracting will also pass through “red-card”-like filters: executors will be clearly specified in drafts, and documents will undergo a multi-stage review including regulatory impact assessment, anti-corruption analysis, and scrutiny by the Competition Committee.
Transparency requirements will also be strengthened. The customer will be required to publish advance notice of a planned direct contract on a dedicated portal, and the notice must remain publicly available for at least three business days. In e-shops, the offer period will be extended from 15 to 60 days, and the minimum delivery period will be set at no less than five days—aimed at preventing cases where timing is manipulated to favor “their own person.”
Another innovation is regional auctions for local manufacturers in a “price reduction” format. Budget organizations will work in such tenders only with domestic market producers, and most notably, an auction will be considered valid even if there is only one participant.
To support the real sector, companies with a localization level above 30% will be granted the right to receive advance payments. The advance amount will be linked to the depth of domestic processing of raw materials, but to curb risks, the total advance will not exceed the value of the supplier’s assets.
Digitalization and public oversight are emphasized separately: tender documents will undergo public discussion for at least two business days. The Competition Committee will be able to respond quickly to comments from citizens and experts and will have the authority to issue binding instructions for government bodies.
From March 1, 2026, an artificial intelligence module will be added to the system—it will automatically calculate average market prices. If a lot’s starting price is more than 10% above or more than 20% below this benchmark, the deal will fall into a “high-risk” category and will automatically be placed under state oversight, including the attention of law enforcement agencies.
Results of all processes that do not contain state or commercial secrets will be subject to mandatory disclosure. By 2026, the country plans to build a service-oriented ecosystem in which artificial intelligence and public oversight are expected to become the main “referees” of fair competition.
As a reminder, the e-procurement system previously reduced average tender time by about 30%. Now, AI-enhanced oversight could make Uzbekistan one of Central Asia’s leaders in digital monitoring of budget spending.
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