Protests in India against the shift to E20 gasoline standard amid driver concerns

The modern role of banks extends beyond simply regulating monetary operations or controlling inflation; they are now also responsible for shaping public trust, which is one of the most crucial factors in the economy. Since the expected outcome is difficult to achieve without confidence in economic decisions, this has become a critically important aspect.

During the international dialogue 'Monetary Policy Dialogue – 2026,' Oxford University Professor Michael McMahon and former International Monetary Fund expert David Vavra shared their views, which contain important recommendations for Uzbekistan.

According to Professor Michael McMahon, central banks previously were limited to announcing decisions. Today, ensuring financial stability has become an integral part of policy. This means that the Central Bank must explain not only the change in interest rates but also the reasons for this decision and its impact on the population and businesses in simple and understandable language.

The expert believes that when people fully understand the Central Bank's decisions, trust in the economy grows. Although terms like 'real interest rate' or 'core inflation' are understandable to economists, they are complex for ordinary citizens. Therefore, central banks must speak the language of everyday concepts such as prices, wages, loans, jobs, and household budgets, ensuring an open and effective dialogue with the public.

McMahon differs from the general opinion that changing economic forecasts is a mistake by specialists. He argues that forecasts are made based on certain conditions, and if factors such as oil prices, exchange rates, or the global economic situation change, the forecast must be updated. It is extremely important, however, that the Central Bank can explain the reasons for these changes to the public in an accessible manner.

When asked about the most important communication task for a developing country like Uzbekistan, the professor gave a brief but very significant answer: 'Reliability, reliability, and reliability again.' In his opinion, in countries with a high level of trust in the Central Bank, inflation control is easier, making trust one of the most important resources of the modern economy.

Former IMF expert David Vavra commented on Islamic banking, emphasizing that this system contributes to increasing the number of users of financial services. He noted that the Islamic financial system is important not only for citizens who adhere to religious principles but also for adding greater diversity and stability to the financial system. This, in turn, helps attract funds into the economy and increase new investments.

In the expert's view, alongside the development of Islamic banking in Uzbekistan, there needs to be an expansion of the market for financial instruments such as sukuk (a type of security compliant with Islamic principles). For this, it is important that sukuk are issued regularly and according to a pre-published schedule. If banks know in advance when new instruments will appear on the market, they can properly plan their liquidity, which contributes to the stable operation of the financial market.

The conclusions of international experts indicate that the key factors for the success of a modern Central Bank are gaining public trust, explaining decisions in simple and understandable language, and ensuring transparency in economic policy. Furthermore, for Uzbekistan, the gradual development of Islamic banking and the sukuk market, diversification of the financial system, and creating an environment favorable to investors remain relevant tasks.

Work is underway in the Buvaidag district of the Fergana region to modernize power grids to ensure their stable operation. Transformer substations are undergoing major repairs, categorized into green, yellow, and red categories.

The head of the Buvaidag district, Behzodjon Ibragimov, inspected the repair and preparation works for facilities classified as red category, including transformer substations in the Ingirchoq settlement with capacities of 419-160 kVA and 895-160 kVA.

During the inspections, issues regarding ensuring uninterrupted and high-quality energy supply to the population, preventing accidents during the autumn-winter period, were discussed, and instructions were given to responsible persons to eliminate identified shortcomings as soon as possible.

Behzodjon Ibragimov held a meeting with representatives of the Chinese company Xinjiang Xinfianjie Technology Co., Ltd. At this meeting, projects for implementing solar power plants, modern solar panels, green energy technologies, and electricity generation in the district were reviewed.

The parties discussed issues of effective use of renewable energy sources, attracting advanced technologies to the region, and prospects for further cooperation. This meeting marked an important step towards the widespread implementation of green economy principles and the development of investment partnership in the Buvaidag district.

It is expected that Chinese specialists will build an enterprise for electricity production and maintenance in Buvaidag based on investments in the near future.

The central government has prepared significant support for small and large investors in REITs and InvITs (Infrastructure Investment Trusts). According to the 'Taxation and Other Laws Bill, 2026,' dividends received from these trusts will remain fully tax-exempt, even if their parent companies switch to a new corporate tax system.

According to sources from the Ministry of Finance, the main goal of this step is to ensure the security of retail investors' funds and support the inflow of capital into the country's real estate and infrastructure sectors.

Under current tax regulations, REITs and InvITs distribute income received from their subsidiaries among investors. Previously, these dividends were tax-exempt only if the company adhered to the old corporate tax system.

Recently, as companies began opting for a new corporate tax system with lower rates, there was a threat to investors that their tax-exempt income could be lost, and the tax burden could increase.

In the proposed bill, the government has presented several important provisions to alleviate the situation for investors.

Restoration of Tax Status: Regardless of whether the company operates under the old or new tax system, dividends paid to investors will not be taxed, as before.

Minor Company-Level Tax: To avoid losses in government tax revenue, it is proposed to introduce only a minor additional tax directly at the company level (SPV), instead of taxing the investors.

Income Preservation: Thanks to this scheme, the actual profit received by ordinary investors will not decrease, while state tax collection will be maintained.

Retail and large investors who invest in REITs and InvITs in search of regular income will no longer face uncertainty in the rules. This will ensure long-term access to capital for large projects such as highways, power plants, warehouses, and commercial real estate.

This bill is part of a broader government plan aimed at stimulating 'ease of doing business' in India and attracting foreign capital. If this bill is passed into law, it will make India's tax structure more transparent and stable, strengthening the confidence of both domestic and foreign investors.