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Maritime Infrastructure

Kazakhstan to Digitalize Seaports to Boost Trans-Caspian Transport Route

Kazakhstan is advancing the digital transformation of its maritime infrastructure as part of broader efforts to strengthen the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. The Ministry of Transport is developing an electronic Maritime Single Window system designed to replace paper-based documentation with digital data exchange for vessel entry and exit procedures at the country’s seaports. The initiative is included in the Roadmap for the Digitalization of Kazakhstan’s Transport Industry for 2025-2027. According to the ministry, the project is being implemented with support from the German Society for International Cooperation (GIZ). An international tender has already been held to select experts responsible for preparing the system’s technical specifications. In February, working meetings were held with stakeholders in Aktau and Kuryk, Kazakhstan’s two largest ports on the Caspian Sea. Discussions focused on port digitalization, simplifying administrative procedures, and reducing vessel processing times through the introduction of the Maritime Single Window. The project is viewed as a key component in the further development of the TITR, which connects China with Europe via Central Asia and the South Caucasus. By streamlining port operations and reducing bureaucratic delays, Kazakhstan aims to enhance the route’s competitiveness and reliability. Kazakhstan’s maritime transport sector has recorded steady growth in recent years. In 2025, maritime cargo volumes reached 8 million tons, a 7% increase compared to 2024. Container traffic through Kazakh seaports rose by 29% to 90,637 TEUs, while cargo volumes transported along the TITR increased by 36%. Infrastructure development has accompanied this growth. In 2025, construction of a container hub at the port of Aktau was completed, a dry cargo vessel was launched on the Kuryk-Baku route, and two new ferries were acquired. Overall transit cargo traffic through Kazakhstan reached 36.9 million tons in 2025, up 6.6% year on year, driven by the integrated development of road, rail, air, and maritime transport. Under the country’s comprehensive maritime infrastructure development plan for 2024-2028, Kazakhstan intends to establish a major transport and logistics cluster based on the ports of Aktau and Kuryk. The plan includes the expansion of container handling capacity, development of cargo terminals and international shipping logistics, and a reduction in administrative barriers. By 2028, total cargo throughput at the ports is expected to increase by 50%, while container handling volumes are projected to triple. To ensure year-round navigation and maintain competitiveness amid changing environmental and logistical conditions in the Caspian region, Kazakhstan has also prioritized dredging works, including the deepening of the ports of Aktau and Kuryk.

Industrial Sector

87 Industrial Enterprises Closed in Tajikistan in 2025

In 2025, 87 industrial enterprises ceased operations in Tajikistan, according to Minister of Industry and New Technologies Sherali Kabir, who outlined the reasons for the closures and presented key industry indicators at a press conference. Kabir described the suspension of activity at certain production facilities as “one of the ongoing issues.” The ministry is working with each enterprise individually, noting that “every job is important for the state management system.” Nevertheless, some companies were shut down, including at the initiative of the ministry. Among the main reasons cited were zero production indicators and changes in organizational and legal status. The minister also pointed to discrepancies between statistical and tax reporting. “This enterprise is registered as three enterprises in tax accounting and as one enterprise in statistics. This should not be the case,” Kabir said. He paid particular attention to cotton-processing enterprises. According to the minister, a number of small factories relied on outdated technologies and “had a negative impact” on the sector. “The fiber length at foreign enterprises processing our cotton is different. However, about 120 cotton ginning enterprises located in the Khatlon region, unfortunately, had a negative impact,” Kabir said. The ministry, together with other agencies, established a special commission and proposed that these enterprises cease operations. At the same time, the total production capacity of Tajikistan’s cotton ginning enterprises is estimated at 2.4 million tons, while actual processing volumes amount to around 500,000 tons. According to the minister, most enterprises have not properly established efficient operations. As an alternative, authorities are considering the creation of technology parks on the sites of former enterprises. The proposal is currently under government review. Kabir stressed that closures or changes in legal status should not be viewed exclusively in negative terms. As of January 1, 2026, Tajikistan had 3,972 registered industrial enterprises employing 92,927 people.

Tax

Foreign Internet Platforms Paid Nearly $18 million in Taxes in Kazakhstan in January

Foreign digital platforms transferred nearly $18 million to Kazakhstan’s state budget in digital services tax, commonly known as the “Google tax”, in January 2026, according to the press service of the State Revenue Committee under the Ministry of Finance. Kazakhstan has applied the digital services tax since 2022. Over this period, 120 foreign companies have registered as taxpayers in the country, including 22 in 2025. Total revenue from the Google tax since its introduction has reached approximately $277.5 million. Of that amount, $117.5 million was collected in 2025, and more than $17.75 million in January 2026 alone. Under the Tax Code, second-tier banks and payment organizations are required to provide tax authorities with information on foreign companies that have undergone conditional registration. This data is used to assess the completeness and timeliness of VAT payments in e-commerce and the provision of digital services to individuals in Kazakhstan. Based on comparisons of bank data, payment system information, and actual VAT payments, tax authorities conduct desk audits. If arrears or underpayments are identified, notifications outlining the discrepancies are issued. Additional enforcement measures came into force on January 1, 2026. Under Article 89 of the Tax Code, state authorities are now authorized to block the internet resources of foreign marketplaces that fail to comply with desk audit notifications or evade VAT registration requirements. The State Revenue Committee emphasized that these measures are intended to ensure a level playing field for domestic and foreign market participants, improve tax compliance in the digital sector, and reduce the shadow economy without conducting on-site tax inspections. As previously reported by The Times of Central Asia, international companies including Google, Apple, Netflix, and Amazon have already registered in Kazakhstan under the Google tax regime. In May 2025, the U.S. company OpenAI also completed tax registration in the country.

Agro Techno-Park

Kazakhstan’s First Agro Techno-Park Opens in Astana

Kazakhstan’s first agro techno-park has begun operations in Astana, creating a new infrastructure platform for the development and implementation of high-tech solutions in the agro-industrial complex (AIC). The project was launched at Saken Seifullin Kazakh Agrotechnical Research University and is aimed at supporting innovation in the Akmola region, one of the country’s key grain-producing areas. According to the Ministry of Agriculture, the agro techno-park will serve as a hub for business incubation, startup support, and the piloting of modern agricultural technologies, with their subsequent introduction into Kazakhstan’s agribusiness sector. The agro techno-park covers approximately 1,000 square meters. Its facilities include a production and engineering unit with a metalworking workshop for experimental and pilot projects, office space for resident companies, and a full-cycle laboratory complex. The site also houses the Kazakh-Australian Innovation Center for Molecular and Genetic Research on Agricultural Crops, as well as laboratories dedicated to agro-biotechnology and microbiology, physical and chemical analysis, and analytical research. “Today, it is extremely important that scientific solutions do not remain within the walls of laboratories but reach agricultural producers and deliver tangible economic results. The agro techno-park should become a link between scientists and agribusiness,” Agriculture Minister Aidarbek Saparov said during his visit to the new facility. University Rector Kanat Tireuov said the agro techno-park lays the foundation for a new culture of technological entrepreneurship in the agro-industrial sector, supports the training of a new generation of specialists, and helps attract investment into applied scientific research. Its activities are expected to accelerate the market introduction of new crop varieties and hybrids, biological products, and engineering solutions, increase the sustainability of agricultural production, and strengthen the sector’s export potential. The Times of Central Asia previously reported that Kazakhstan significantly increased its exports of processed, high-tech agricultural products last year.

Economy

Kazakhstanis Spend 57% of Their Household Budgets on Food

Despite reported growth in certain macroeconomic indicators, the financial situation of Kazakhstani households continues to deteriorate, according to analysts at Finprom.kz, who note a sharp increase in the share of food expenditures, now accounting for more than half of total consumer spending. In the third quarter of 2025, food expenditures reached 57.2% of overall household consumer spending, the highest level since 2021. A higher figure was recorded only in 2020, the first year of the COVID-19 pandemic, when the share stood at approximately 58%. For comparison, in developed countries, food spending typically accounts for 10-15% of household budgets. In international practice, a level above 50% is generally regarded as an indicator of significant pressure on household incomes. Regionally, the burden is even more pronounced. The highest share of food expenditures between June and September 2025 was recorded in the Zhetysu region, at 65.8%. In the Turkestan region, the figure was 65.3%, and in the Almaty region, 62.2%. These regions are largely agriculturally oriented and have less diversified economies. The rising share of food expenditures is considered a key socio-economic indicator. An increase in this share reduces the resources available for education, healthcare, housing, and long-term savings or investment. The gap between urban and rural areas persists. In the third quarter of 2025, food spending accounted for 58.7% of total expenditures in rural areas, compared to 56.5% in urban areas. In absolute terms, urban food expenditures increased by 15.5% year-on-year, while rural expenditures rose by 11%. In cities, the largest increases were recorded in spending on meat and meat products (22.3%), fruit (18.6%), vegetables (16.8%), and oils and fats (16.4%). In rural areas, growth was more moderate, and spending on some categories, such as sugar and confectionery, declined. Differences are also evident in dietary structure. Rural residents spend more on bread and cereals, about $176 compared to $139 among urban residents, while urban households allocate more to dairy products, at $118 versus $93 in rural areas. The increase in the food burden has already been accompanied by a reduction in non-food spending. In urban areas, the share of non-food expenditures fell from 26% to 22.2%, and in absolute terms from $492 to $450. The sharpest declines were observed in spending on automotive goods and fuel, telecommunications, household appliances, home repairs, and interior renovation. At the same time, spending on medicines increased.

China-Kyrgyzstan-Uzbekistan Railway

China–Kyrgyzstan–Uzbekistan Railway: What It Means for Central Asia

The China–Kyrgyzstan–Uzbekistan railway (CKU railway), also known as the Kashgar–Andijan railway line, is more than an infrastructure project. It represents a geopolitical initiative that could significantly shape the future of Central Asia. In June 2024, Beijing, Bishkek, and Tashkent signed the intergovernmental agreement to move the project forward. The project’s financing—estimated at $4.7 billion—was finalized in December 2025, sparking optimism in all three nations about regional connectivity, trade, and economic growth. Once completed, the railway is expected to become a vital strategic asset in China’s Belt and Road Initiative (BRI). From China’s perspective, the CKU project is a strategic line that diversifies its trade channels and strengthens overland access to Central Asia and beyond. Construction was ceremonially launched on 27 December 2024 in Kyrgyzstan, with major works progressing through 2025, including key tunnel works. For Uzbekistan, the railway could serve as a key link for commerce and transit. Tashkent aims to integrate the China–Kyrgyzstan–Uzbekistan line with existing international transport networks, including connections through Iran and Turkey. But how important is the project for Kyrgyzstan, through which, according to recent reporting, 304 km of the line will pass? According to Nurbek Satarov, Presidential Envoy in the Naryn Region, the project is vital for Kyrgyzstan’s most mountainous region, as roughly 90% of the route through the country will run through Naryn. As he told The Times of Central Asia, construction is in full swing, and the railway is expected to be completed between 2028 and 2030, despite the challenging terrain and technical difficulties. The project includes the construction of 50 bridges and 29 tunnels, underscoring the significant engineering complexities involved. But while regional and national authorities anticipate direct economic benefits from the project, critics argue that Kyrgyzstan may end up serving primarily as a transit country, with limited gains for the local economy. They also question the financial sustainability of the project, noting that it is backed by a long-term loan package of approximately $2.3 billion from Chinese banks. The financing, structured over 35 years and to be repaid by the joint venture company implementing the railway, increases Kyrgyzstan’s exposure to China-linked debt and has raised concerns about future repayment obligations. [caption id="attachment_44216" align="aligncenter" width="1536"] Site visit at the road construction project in the Naryn Oblast; image: TCA, Nikola Mikovic[/caption] However, Edil Baisalov, Kyrgyzstan’s Deputy Prime Minister, claims that the CKU will have a positive impact on the country’s economic development. “This railroad will virtually transform Kyrgyzstan – and not just Kyrgyzstan, but the whole of Central Asia,” he told The Times of Central Asia. Baisalov believes that the CKU railway, once completed, will be part of a larger transcontinental railroad that will cut transit times by at least seven days compared to the northern routes of the Trans-Siberian Railway and maritime transport. The CKU line could indeed bypass the usual northern rail routes through Russia and Kazakhstan, taking a significant share of freight from those countries and reducing their transit revenue. Kyrgyzstan, on the other hand, hopes to see direct gains...