DIGITAL TRANSFORMATION OF THE SERVICE SECTOR IN THE REPUBLIC OF KARAKALPAKSTAN: INSTITUTIONAL REFORMS, ECONOMIC IMPACTS, AND DEVELOPMENT PROSPECTS

The article investigates the processes, mechanisms, and economic implications of digital transformation in the service sector of the Republic of Karakalpakstan as part of Uzbekistan’s national modernization strategy. Based on institutional, infrastructural, and sectoral analysis, the study identifies the main drivers, challenges, and outcomes of service digitalization. Using official statistical data, analytical modeling, and comparative analysis, the paper evaluates the role of digital technologies in improving service quality, economic growth, social inclusion, and regional competitiveness. The results show that digitalization significantly enhances service productivity, expands access to public and private services, and contributes to sustainable economic development. Policy recommendations are proposed to strengthen digital infrastructure, institutional capacity, and human capital development.