World Bank approves $250 million loan to expand student financing in Uzbekistan

The World Bank has approved a $250 million loan to support Uzbekistan’s EduImkon program, aimed at improving access to higher, technical, and vocational education for young people across the country. The initiative is set to benefit approximately 600,000 students over the next three years, with a focus on expanding equitable access to student financing.

The loan will primarily target students from low-income families and women, who are expected to receive about 80% of the allocated funds. Uzbekistan, with a youth population of around 10 million people aged 14 to 30, has made expanding access to education a strategic priority as it seeks to boost its human capital, Caliber.Az reports via Uzbek media. 

In recent years, the country has made significant strides in education, with the number of higher education institutions nearly tripling and university enrollment rising from 8% in 2017 to 48% in 2024.

However, this rapid expansion has placed strain on the educational loan system, which operates through commercial banks and relies on state subsidies. The growing demand for student financing, coupled with challenges in aligning loan structures with labor market needs, has highlighted the need for reform.

A key issue is that educational loans are often not directed toward programmes with the highest demand in the workforce, such as STEM (science, technology, engineering, and mathematics) fields and information and communication technologies (ICT). 

Despite women accounting for 55% of university students and 80% of loan recipients, only one-third pursue high-demand STEM programmes, limiting their prospects for high-paying jobs upon graduation.

The EduImkon programme, set to run from 2026 to 2028, aims to address these challenges by moderising the student financing system and improving its alignment with labour market needs.

The programme will be managed by the Ministry of Economy and Finance, with the goal of enhancing interagency coordination, streamlining application processes, and increasing transparency in loan decisions and data collection.

By Sabina Mammadli