Uzbekistan Weekly: Uzbekistan deepens EU ties, breaks ground on China rail, launches Islamic banking

February 5, 2026 to February 11, 2026

This week's top 10 stories from Uzbekistan, selected from our daily intelligence briefs.

1. EU and Tashkent Map Priority Areas to Deepen Cooperation Across Trade, Energy, and Governance

On 9 February in Tashkent, Uzbekistan’s Ministry of Investment, Industry and Trade hosted the 8th meeting of the Uzbekistan–EU Subcommittee on Cooperation, with the EU Delegation led by Ambassador Toivo Klaar and Charlotte Adrian of the European Commission’s DG INTPA (Central Asia and Afghanistan). Senior officials reviewed a broad agenda—investment, trade and industrial development, digital transformation, energy, environmental management, agriculture, education, civil society, gender equality and regional cooperation—and agreed to deepen strategic, innovation‑led partnerships aimed at sustainable development, improved public‑service delivery and regional integration.

Separately, Uzbekistan’s Agency for the Development of the Pharmaceutical Industry met with the EU delegation to explore participation in Horizon Europe and deepen pharma sector ties. Discussions covered using EU research funding for pharmaceutical R&D, joint innovation projects, investment attraction and localizing drug manufacturing, with particular attention to capabilities at the Tashkent Pharma Park innovation cluster for clinical research, technology transfer and pilot manufacturing. No funding commitments were made, but both sides expressed readiness to draft joint projects and pursue co‑financed R&D, skills development and export‑oriented production.

Local Coverage: uzdaily.uz

From daily briefs: 2026-02-05, 2026-02-11

2. China–Kyrgyzstan–Uzbekistan Railway Breaks Ground, Rewiring Central Asia’s Transit Map

Construction has begun in Kyrgyzstan on the 532 km China–Kyrgyzstan–Uzbekistan railway linking Kashgar to Andijan, with roughly 40% of the route traversing tunnels and bridges. The corridor—designed to shorten transit times and expand logistics capacity—adds a second direct overland route between China and Central Asia, potentially opening new access to Eurasian Economic Union markets, broadening commodity flows, and deepening Kyrgyz–Uzbek trade ties.

Concurrently, Uzbekistan and Pakistan advanced regional connectivity through three moves: establishing the Pakistan–China–Kyrgyzstan–Uzbekistan (PCKU) multimodal corridor, launching short-term field studies for an Uzbekistan–Afghanistan–Pakistan (Trans-Afghan) railway, and securing Uzbek-operated warehouses at Karachi Port with investor incentives. Pilot PCKU shipments are slated for February, while Karachi facilities aim to reduce dwell times and logistics costs to Arabian Sea markets—addressing the persistent bottleneck of direct rail links and reinforcing Uzbekistan’s role in regional supply chains (trade between Uzbekistan and Pakistan reached $445.9 million in 2025).

Local Coverage: uza.uz, uzdaily.uz, gazeta.uz, qalampir.uz

From daily briefs: 2026-02-06, 2026-02-10

3. U.S.–Uzbekistan Business and Investment Council Holds Inaugural Meeting in Tashkent

The U.S.–Uzbekistan Business and Investment Council held its inaugural meeting in Tashkent, co‑chaired by Uzbekistan’s Presidential Administration Chief Saida Mirziyoyeva and U.S. Special Representative for South and Central Asia Sergio Gor. The council was established after President Shavkat Mirziyoyev’s U.S. visit on November 6–7, 2025 — during which he met President Donald Trump and participated in the C5+1 summit — and is designed to deepen commercial diplomacy and expand bilateral trade and investment channels between the two countries.

The launch was accompanied by a series of high‑level U.S. engagements in Tashkent, including visits by Deputy Secretary of State Christopher Landau and Special Representative Gor, who held talks with Foreign Minister Baxtiyor Saidov and U.S. Ambassador Jonathan Henick and toured cultural sites. President Mirziyoyev also received Gor’s delegation and accepted gifts delivered on behalf of President Trump. In Washington staffing moves tied to the reset, Komil Allamjonov was appointed counselor‑minister at Uzbekistan’s embassy, signaling an emphasis on sustained diplomatic and economic engagement.

Local Coverage: qalampir.uz

From daily brief: 2026-02-08

4. Senate Backs Legal Framework to Launch Islamic Banking, Introduces Licensing and Tax Rules

Uzbekistan’s Senate has approved amendments to embed Islamic banking into the country’s legal and regulatory framework, revising two codes and seven statutes to introduce licensing, supervision and tax treatment for Sharia‑compliant operations. The Central Bank is empowered to issue, renew and revoke Islamic banking licenses and to establish an Islamic Finance Council to set standards; banks may operate conventional and Islamic windows concurrently and must submit to annual external Sharia audits.

Tax provisions treat income from Islamic finance as equivalent to interest for tax purposes, exempt mark‑ups on goods sold to clients by banks and microfinance firms from VAT, and clarify procurement exemptions and alignment with deposit guarantee mechanisms—measures intended to close prior tax‑neutrality gaps that limited product uptake. Supporters say the changes should broaden financial inclusion, increase competition and attract strategic investors, while the regulatory details and implementation timeline will determine market impact.

Local Coverage: gazeta.uz, uzdaily.uz, qalampir.uz

From daily brief: 2026-02-06

5. Mirziyoyev to Pay State Visit to Pakistan for Strategic Council Launch and Business Forum

Uzbek President Shavkat Mirziyoyev will make a state visit to Pakistan on 5–6 February at the invitation of Prime Minister Shehbaz Sharif. In Islamabad he will hold talks with President Asif Ali Zardari, Prime Minister Sharif and Army Commander of Ground Forces Field Marshal Asim Munir, and will preside over the inaugural meeting of the Uzbekistan–Pakistan Strategic Cooperation Council. The agenda targets expanding a strategic partnership across politics, trade, industry, transport and infrastructure, tourism and cultural ties, with a particular emphasis on boosting bilateral trade and advancing joint projects.

The visit is expected to conclude with a Joint Declaration and a substantial package of agreements across priority sectors, and includes a joint business forum bringing together leading private‑sector representatives from both countries. For international stakeholders, the visit signals Islamabad and Tashkent’s intent to formalize higher‑level coordination on regional security and economic connectivity, potentially accelerating cross‑border projects and trade flows between Central and South Asia.

Local Coverage: gazeta.uz, qalampir.uz, uzdaily.uz

From daily brief: 2026-02-05

6. AIIB, Tashkent Deepen Ties with Push for Private-Sector Finance and Green Energy Projects

Uzbekistan has deepened ties with the Asian Infrastructure Investment Bank (AIIB) after President Shavkat Mirziyoyev and Investment, Industry and Trade Minister Laziz Kudratov met AIIB President Zou Jiayi in Tashkent to set a strategic cooperation agenda through 2030. Uzbekistan is AIIB’s largest Central Asian partner—accounting for 51% of the bank’s regional operations—with a joint portfolio exceeding $7 billion and more than $1 billion financed in 2023. Officials agreed priorities to expand non‑sovereign financing for the private sector, support public–private partnerships, scale renewable energy and energy‑efficiency projects, improve water supply and social services, and advance poverty‑reduction programs, underscoring AIIB’s role in large, regionally significant infrastructure.

The engagement signals stronger mobilization of private‑sector finance alongside sovereign lending to accelerate Uzbekistan’s reform and investment agenda; AIIB leadership reiterated support for Tashkent’s reforms and was invited by Minister Kudratov to attend the Tashkent International Investment Forum on 16–19 June 2026—an event likely to showcase new PPP and green‑energy financing opportunities.

Local Coverage: uzdaily.uz, qalampir.uz, uza.uz

From daily brief: 2026-02-11

7. Sovereign Rating Upgrades Lower Uzbekistan’s Borrowing Costs, Officials Say

Sovereign rating upgrades from Fitch and S&P (both moved Uzbekistan from BB- to BB) and a Moody’s decision to keep Ba3 but raise the outlook to Positive have materially lowered the country’s external borrowing costs, the Uzbek Ministry of Economy and Finance said. The ministry estimates that improved international market access has cut interest rates on new foreign funding by about 1–1.5 percentage points, translating to annual debt‑service savings of roughly $250–300 million.

The upgrades reflect what international agencies called stronger macroeconomic outcomes and arrive against a backdrop of rapidly rising external liabilities: as of Oct. 1, Uzbekistan’s external debt stood at $75.4 billion, up $11.3 billion year‑to‑date, with corporate foreign borrowings now exceeding sovereign external debt. For international investors and policymakers, the ratings move eases sovereign financing costs but highlights continued exposure from rising overall external indebtedness.

Local Coverage: gazeta.uz

From daily brief: 2026-02-10

8. Central Asia Deepens Pakistan Pivot with Trade Deals, Southern Corridors, and Defense Ties

In early 2026 Uzbekistan and Kazakhstan significantly deepened strategic ties with Pakistan, formalizing a raft of trade, transport and security agreements aimed at turning Pakistan into a South Asian gateway for Central Asia. Kazakhstan upgraded relations to a strategic partnership during President Kassym-Jomart Tokayev’s Islamabad visit, signing nearly 20 intergovernmental accords and facilitating some 30 commercial contracts (~$200m) at a 250‑company forum. Uzbekistan institutionalized a High‑Level Strategic Cooperation/Partnership Council after President Shavkat Mirziyoyev’s 5–6 February state visit, exchanging roughly 28–30 agreements, launching a $3.5bn project pipeline and setting a joint trade target of $2bn (from roughly $500m in 2024 and ~$446–500m in 2025).

Connectivity and logistics are central: both capitals prioritized the Central Asia–Afghanistan–Pakistan corridor, the Trans‑Afghan railway and a Pakistan–China–Kyrgyzstan–Uzbekistan route to cut delivery times by 30–40% (up to five days) and logistics costs by as much as 25–40%, plus new cargo and passenger air links. Security cooperation expanded through a defence‑ministries “roadmap,” counter‑narcotics and anti‑corruption pacts and training exchanges, while analysts warn progress depends on Afghanistan’s stability and Pakistan–Afghanistan relations. The package also targets sectoral cooperation in mining, pharmaceuticals, textiles, agriculture and renewables, with concrete commercial talks under way with Pakistani conglomerates (HRL, Engro, Gohar) on joint exploration, chemical and agro‑processing projects.

Local Coverage: uz24.uz, uza.uz, uzdaily.uz, gazeta.uz, qalampir.uz

From daily briefs: 2026-02-05, 2026-02-06, 2026-02-07, 2026-02-09, 2026-02-10, 2026-02-11

9. U.S.–Uzbekistan Talks Advance Trade, Investment and Critical Minerals Cooperation

Uzbekistan’s Foreign Minister Baxtiyor Saidov held high‑level talks with U.S. officials in January–February focused on expanding market access, investment and cooperation in critical minerals, signing a memorandum of understanding on supply‑chain stability for critical minerals and rare earths. In Tashkent Saidov met U.S. Trade Representative Jameson Greer and U.S. EXIM Bank President John Yovanovich to discuss practical mechanisms to streamline trade and mobilize finance for strategic projects; in Washington he participated in the inaugural U.S. State Department ministerial on critical minerals (hosted with 54 states and the European Commission) where Uzbekistan joined an emerging global architecture, signed bilateral framework agreements on exploration, fair‑market development, bottleneck relief and financing access, and helped launch the FORGE forum under the C5+1 process.

The agreements position Uzbekistan among about 10 countries newly aligned with Washington’s push to diversify sources for inputs used in semiconductors, EV batteries and defense manufacturing, reducing dependence on China‑dominated supply chains and opening potential investment and technology flows under a 2026 bilateral agenda. Officials emphasized responsible development, international standards and financing instruments to support projects; Saidov also flagged a new Peace Council to help stabilize conflict‑affected regions and presented an album suggesting possible Uzbek involvement in Gaza reconstruction, though no project details have been announced.

Local Coverage: uzdaily.uz, gazeta.uz, qalampir.uz

From daily briefs: 2026-02-05, 2026-02-06, 2026-02-07, 2026-02-08

10. Accounting and Audit Overhaul Sets IFRS Compliance and Public-Interest Entity Rules for 2025

Uzbekistan has enacted a broad accounting and audit reform package effective for 2025 that mandates IFRS and ISA adoption for newly defined public-interest entities (PIEs) — including listed companies, banks, investment funds, exchanges, large state-owned enterprises and firms meeting asset, revenue or employment thresholds. A 15 September presidential decision set the reform priorities to align financial reporting with international norms, improve market transparency and attract long‑term investment.

To implement the changes authorities established a methodological council, integrated IFRS templates into ERP systems and the Unified Reporting System, and launched digital upskilling and certification support: exam and training costs were funded for over 1,300 applicants, and about 1,470 specialists now hold international credentials through 14 ACCA‑accredited training centers. The “Audit” IT suite was introduced to strengthen oversight, and nearly 20 regulatory acts plus expanded cooperation with the IFRS Foundation, World Bank and ACCA underpin the new framework.

Local Coverage: uza.uz

From daily brief: 2026-02-06

About This Weekly Digest

The stories above represent the most significant developments from Uzbekistan this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Uzbekistan's leading news sources to provide comprehensive situational awareness for international decision-makers.