Business & Economy - The Times Of Central Asia

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Transit Trade

Pakistan and Uzbekistan Turn to China for Transit Trade Amid Regional Security Risks

Pakistan and Uzbekistan have agreed in principle to reroute some of their bilateral transit trade through China. The move follows worsening security that closed traditional routes through Afghanistan and disrupted alternatives through Iran, according to Pakistan Today. The two governments are expected to formalize the decision by signing amendments to the Pakistan-Uzbekistan Transit Trade Agreement during the visit of Uzbekistan’s deputy prime minister to Pakistan on July 21. Under the revised agreement, the China corridor will become an official transit route, allowing cargo to travel through Pakistan’s Sost Dry Port, cross western China, and continue into Central Asia. “The protocol is aimed at expanding transit options and ensuring uninterrupted movement of goods between the two countries despite evolving regional security challenges,” a Pakistani official familiar with the negotiations told Pakistan Today on condition of anonymity. The arrangement will provide Pakistan with an additional route to Central Asian markets while allowing Uzbekistan to maintain access to Pakistani seaports despite growing instability across the region. The decision marks a significant shift in regional trade planning. For years, the shortest and most commercially attractive route between Pakistan and Uzbekistan passed through Afghanistan. That corridor was also expected to become part of the planned Uzbekistan-Afghanistan-Pakistan railway linking Central Asia with ports on the Arabian Sea. Those plans have largely stalled following the sharp deterioration in relations between Islamabad and Kabul. Pakistan closed its main border crossings, including Torkham and Chaman, after cross-border clashes in October 2025. Trade through the crossings has remained suspended amid continuing security tensions and disagreements over militant groups operating from Afghan territory. The disruption has affected not only transit cargo but also Pakistan’s direct exports to Afghanistan, traditionally an important market because of its limited domestic manufacturing base. Pakistani companies supply cooking oil, cement, soap, pharmaceuticals, aluminum cans, food products, and other consumer and construction goods to Afghanistan. Business groups cited by Pakistan Today estimated earlier this year that the prolonged border closure was costing Pakistani exporters around $177 million every month, while warning that customers in Afghanistan and Central Asia could permanently shift to suppliers using other regional transport routes. Pakistan initially sought to compensate by expanding transport links through Iran. In April, Islamabad operationalized new transit corridors through both Iran and China, including an Iranian route connecting Pakistani ports with Central Asian markets while bypassing Afghanistan. However, renewed military confrontation between Iran and the United States has raised fresh concerns about that option. Continuing attacks on infrastructure and commercial shipping around the Strait of Hormuz have increased freight costs, insurance premiums, and energy-related risks, reducing the corridor’s reliability. Routing trade through China would allow both countries to bypass security problems affecting routes through Afghanistan and Iran. It would also advance Pakistan’s long-term plan to extend the China-Pakistan Economic Corridor toward Central Asia. The new route, however, is expected to come with trade-offs. Transporting goods through China will involve longer distances, additional border procedures, higher handling costs, and extended transit times. As a result, the corridor is expected to...

Automotive Manufacturing

Kazakhstan Plans BYD Assembly and New Domestic Vehicle Brands

Kazakhstan plans to begin assembling passenger vehicles for Chinese electric vehicle manufacturer BYD next year and launch buses under a domestic brand as it expands local vehicle production and develops its electric mobility sector. The announcement came during a government meeting, where Astana Group chairman Nurlan Smagulov said the company had reached agreements with BYD following negotiations held in Shanghai earlier this month. Production of BYD passenger vehicles is expected to begin in 2027. “Next year we will begin producing BYD passenger cars. The company manufactures only hybrid and fully electric vehicles,” Smagulov said, noting that BYD already operates a production facility in neighboring Uzbekistan and is seeking to expand its presence in the Kazakh market. Prime Minister Olzhas Bektenov said the government would support the project and urged the company to accelerate implementation, describing domestic electric vehicle production as a priority for Kazakhstan’s industrial policy. Astana Group also plans to introduce a new bus brand, Astana, developed jointly by Kazakh and Chinese engineers. Assembly of diesel- and natural gas-powered buses is scheduled to begin in November, while production of electric buses is expected to start in March next year. Adil Shaikemelov, deputy director of SaryarkaAvtoProm, part of the Allur Group, said the company is developing a domestic passenger car brand with an undisclosed international partner. He said the first vehicle under the new brand could enter production within three to four years. The government is working with BYD to develop a nationwide network of high-speed charging stations, Industry and Construction Minister Yersaiyn Nagaspayev said. Kazakhstan is also expanding its automotive workforce. Science and Higher Education Minister Sayasat Nurbek said about 4,000 students are enrolled in automotive-related programs at 19 universities, while more than 3,000 government scholarships have been allocated this year. Additional specialists are training abroad through the Bolashak scholarship program. As previously reported by The Times of Central Asia, Kazakhstan is also preparing to manufacture autonomous SITRAK heavy trucks as part of broader efforts to localize vehicle production and deepen industrial cooperation with Chinese manufacturers.

Yak Farming

Kyrgyzstan Registers New White Yak Breed to Boost Mountain Livestock Farming

Kyrgyzstan has officially recognized the Kyrgyz White Yak as a new livestock breed after more than a decade of selective breeding. The move is intended to support high-altitude livestock farming and create new export opportunities. The breed was unveiled on July 20 at the high-altitude Syrt pasture in Issyk-Kul Region. Developed between 2014 and 2026, the Kyrgyz White Yak is the result of years of breeding work led by veteran livestock breeder Tashtanbek Akmatov. According to the Ministry of Water Resources, Agriculture and Processing Industry, the animals combine high productivity with strong adaptation to harsh alpine conditions. Unlike traditional dark-coated yaks, the new breed produces naturally white wool and down that can be processed without dyeing, giving it added value for textile manufacturers. Officials say this could help create new export opportunities for Kyrgyz livestock products. Yak farming has been gaining importance in Kyrgyzstan as climate change places increasing pressure on conventional livestock production. At the beginning of 2026, the country had 61,650 yaks, most of them raised in the mountainous Naryn, Issyk-Kul, and Osh regions. Yaks remain on mountain pastures throughout the year and can withstand temperatures as low as -40°C. They are raised for meat, milk, and wool while remaining productive at elevations between 2,000 and 4,500 meters, where other livestock struggle to survive. Officials increasingly see yak farming as a climate-resilient branch of agriculture capable of making use of remote high-altitude pastures while reducing pressure on lower grazing lands. As previously reported by The Times of Central Asia, Kyrgyzstan has expanded pasture restoration and forage production in response to rising livestock numbers. The programs also support farming in mountain regions.

Allied Biofuels

Allied Biofuels Details Export Routes for Planned $6.1 Billion Uzbekistan SAF Project

Allied Biofuels has disclosed planned export routes that would carry sustainable aviation fuel from its proposed facility in Uzbekistan to customers in Europe and the United Arab Emirates via rail and sea corridors crossing Kazakhstan, the Caspian Sea, the Black Sea, and the Suez Canal. The routes are set out in a logistics agreement with Latvia-based Pro Logistic Services that was signed during the 5th Tashkent International Investment Forum in June and announced on July 20. It covers the future transport of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF), rather than immediate exports. The production facility has not yet been built, and Allied Biofuels has said commercial fuel supplies are expected to begin in 2030. Under the agreement, Pro Logistic Services will design and implement a multimodal transport network covering dedicated rail tank cars, port handling, freight forwarding, and marine shipping. The company would coordinate delivery from the project site in Uzbekistan to customers in Europe, the UAE, and other markets. The logistics partnership forms part of Allied Biofuels’ planned $6.08 billion renewable energy and sustainable fuel project in Uzbekistan’s Khorezm region. The development is backed by a project implementation agreement with the regional authorities and has received special economic zone status under a presidential decree. The planned complex would combine biomass processing, refining, green hydrogen, and power-to-liquid technologies. Allied Biofuels says it would produce about 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. A proposed 4.45-gigawatt renewable energy system, supported by battery storage and hydrogen infrastructure, would supply the project. In June, Allied Biofuels signed an engineering agreement with Sinopec Engineering Group covering front-end and detailed design, systems integration, and cost development. The logistics program is expected to proceed alongside engineering, production planning, financing, and negotiations with potential fuel buyers. Uzbekistan Airports and Allied Biofuels also signed a memorandum of understanding in May on future SAF and e-SAF supplies. The May announcement said cooperation would begin in 2030. Allied Biofuels’ latest statement describes the memorandum as binding and says it covers annual purchases of 117,000 tonnes. For shipments to the UAE, fuel would travel by rail from Miskin Station through the Trans-Caspian International Transport Route. The proposed journey would cross Kazakhstan and the Caspian Sea before reaching the Georgian Black Sea ports of Poti or Batumi. The cargo would then be transferred to tankers and shipped through the Black Sea, the Mediterranean, and the Suez Canal to Fujairah and other UAE ports. European exports would use a separate corridor. Fuel would travel by rail from Miskin Station to the Port of Riga in Latvia, before continuing by sea to Hamburg and other European ports. The plan reflects Uzbekistan’s wider effort to improve rail links and secure more reliable access to distant seaports. Pro Logistic Services says it has direct forwarding agreements with the national railway operators of Uzbekistan, Kazakhstan, Latvia, Turkmenistan, and Lithuania. Headquartered in Riga, the company operates more than 4,000 freight wagons and maintains a presence in...

Education

Why Global Universities Are Expanding into Kazakhstan

Kazakhstan's campaign to bring foreign universities into the country has moved far beyond a small pilot. By July 2026, the government said it had established partnerships with 40 foreign institutions and had 32 foreign university branches in operation. A separate government summary said those institutions enrolled about 12,000 students and employed 1,500 teachers, including 500 foreign professors. The expansion has accelerated since 2021. Universities from Europe, North America, Russia, China, and South Korea now operate campuses, joint institutes, or degree partnerships across Kazakhstan. The projects range from branded campuses in Astana and Almaty to specialist programs in Petropavl, Aktobe, Turkestan, and Taldykorgan. The figures describe more than a higher education reform. Kazakhstan is importing degrees, teaching methods, and university brands while trying to retain local students and attract more from abroad. The country's international student population reached 35,075 from 88 states in 2025, an increase of 11% from the previous year. These are related but distinct trends. Most international students attend Kazakh institutions, while foreign branches serve both domestic and overseas applicants. Kazakhstan wants to turn both flows into a regional education industry. The result will depend less on the number of openings than on degree quality, graduate employment, research, and regional demand. Universities Are Following the Students International education was long built around students moving to a small group of destination countries. That model remains powerful, but universities are increasingly taking their programs to the markets where students already live. UNESCO says 7.3 million of the world's 269 million higher education students now study outside their home countries, up from about two million in 2000. This has created a large mobile market, but it has also increased pressure on housing, immigration systems, and university capacity in popular destinations. The OECD noted in April 2026 that leading host countries were reassessing how international enrollment fits with housing supply, public services, and institutional capacity. Australia, Canada, the United Kingdom, and several European countries have reviewed visa or admissions policies in recent years. For universities, an overseas campus or joint degree offers another route to growth. It can bring in students who cannot afford several years of housing and travel abroad. It also gives an institution a presence in a new market without relying entirely on migration. Coventry University made the logic unusually clear when it announced a second Kazakhstan campus in June. "It is harder for students to come to the UK, so we are taking quality UK higher education to them," vice-chancellor John Latham said. Foreign operations are not always replicas of the home campus. They differ in ownership, staffing, admissions, language, and the qualification awarded. Some universities manage a branded campus. Others deliver programs through a Kazakh partner's buildings and staff. This makes expansion faster and cheaper, but it also makes quality assurance more important. Why Kazakhstan? Kazakhstan offers universities a sizeable domestic market and access to a much larger region. The country enrolled 678,100 higher education students at the start of the 2025-2026 academic year, including more than...

Automotive Manufacturing

Kazakhstan to Produce SITRAK Autonomous Heavy Trucks

Kazakhstan plans to begin producing autonomous SITRAK heavy-duty tractor units within three years as it expands domestic vehicle manufacturing and industrial cooperation with China. Industry and Construction Minister Yersayin Nagaspayev announced the plan at a government meeting on July 21. Nagaspayev said the project was among the agreements reached during President Kassym-Jomart Tokayev’s July 15–17 visit to China. "By 2028, Kazakhstan plans to implement new projects to expand passenger and commercial vehicle production. Agreements reached during the presidential visit to China include the organization of production for Li Auto, Omoda, and Jaecoo vehicles, the manufacture of autonomous Sitrak tractor units, and the development of a nationwide network of high-speed charging stations together with BYD," Nagaspayev said. SITRAK is the premium heavy-truck brand developed between 2009 and 2011 by Chinese manufacturer Sinotruk in partnership with Germany's MAN. The brand’s C7H tractor units, available in 4×2, 6×2, and 6×4 configurations, together with its heavy-duty construction dump trucks, are among the most popular Chinese commercial vehicles in Kazakhstan. The minister did not disclose the planned production site or expected manufacturing capacity. Kazakhstan already assembles Scania and HOWO heavy trucks at an automotive plant in Saran, near the central city of Karaganda. Nagaspayev said Kazakhstan's automotive sector is expected to produce 190,000 vehicles of all types in 2026, surpassing the previous record of more than 171,000 vehicles set in 2025. The government also plans to increase the share of locally made automotive components. Domestic producers already make tires and engine components, as well as batteries and bus parts. Seats and multimedia systems are also produced locally. New projects are underway to manufacture bumpers and wiring harnesses, along with wheels and automotive paint. To support further industrial development, Kazakhstan recently adopted legislation introducing the legal concept of an industrial cluster. The country's largest automotive and manufacturing clusters are currently located in Kostanay, Saran, and Almaty, according to the minister. Artificial intelligence is also playing an increasingly important role in Kazakhstan's manufacturing sector. Nagaspayev said all 11 operating automobile plants in the country have introduced AI-based systems for quality control and industrial safety. An AI-powered situational center has also been established to monitor manufacturing operations, analyze information from surveillance cameras, sensors, and industrial information systems, detect potential emergencies and operational risks, and help factory managers respond before incidents occur. As previously reported by The Times of Central Asia, Kazakhstan and Russia launched a pilot cross-border driverless freight transport corridor in May, marking another step toward the wider adoption of autonomous commercial transport across the region.