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GSMA Summit

Uzbekistan AI and 5G Push in Focus at GSMA M360 Eurasia

Policymakers, telecom executives, investors and technology leaders gathered in Samarkand on May 20-21 for GSMA M360 Eurasia 2026, a regional summit focused on digital transformation, artificial intelligence, connectivity and the future of telecommunications across Eurasia. The event brought together government representatives and industry figures to discuss how countries in Central Asia and neighboring regions can translate expanding mobile connectivity into long-term economic growth. Questions surrounding 5G deployment, AI infrastructure, education, startup ecosystems and digital skills featured prominently throughout the discussions. In an interview with The Times of Central Asia, Tair Ismailov, Strategic Engagement Director at the GSMA, discussed what governments should realistically expect from 5G, the challenges of building AI ecosystems and why education may ultimately determine whether countries benefit from rapid technological change. His comments come as Uzbekistan expands investment in telecommunications, data infrastructure and AI education while positioning itself as one of Central Asia’s fastest-growing digital economies. Why 5G May Matter More to Industry Than Consumers For many governments, 5G deployment has become a symbol of technological progress. Yet Ismailov said the economic benefits differ significantly depending on how countries adopt the technology. “Each country has its own path,” he said. “There are countries that have been pioneers in 5G, for example the U.S., South Korea and China, because they have ecosystems of equipment that they need to produce and drive.” Other countries, he argued, may benefit from moving later. “Sometimes it’s better for developing countries not to be in the avant-garde, but rather to follow examples and learn from existing cases,” he said. According to Ismailov, one of 5G’s most immediate functions is helping networks manage growing internet demand. Digital consumption patterns have changed dramatically over the last decade, he noted. “Back in the day, we never streamed videos, now we take it for granted,” Ismailov said. “Average internet consumption in the region is around 17GB per month per user. These are big numbers.” As traffic increases, networks require greater efficiency and capacity. “For networks simply to cope with this traffic, they need to be more productive, and 5G brings this productivity,” he explained. However, he suggested that the technology’s most significant economic impact may emerge outside consumer markets. “If you look at China and other markets, the biggest 5G benefits are granted to the B2B sector,” Ismailov said. “Businesses benefit from low latency and higher speeds.” Consumers may not immediately notice improvements, he added, but industries relying on automation, logistics, manufacturing or cloud services could see larger gains. “On the consumer side, you might not notice it,” he said, “but when you don’t have it, you start noticing it.” [caption id="attachment_49335" align="aligncenter" width="2560"] Image: TCA/Sadokat Jalolova[/caption] Building AI Requires More Than Data Generation As artificial intelligence expands globally, governments have begun viewing data as a strategic resource. Asked whether Uzbekistan has enough high-quality and accessible data to build a meaningful AI ecosystem, Ismailov argued that generating information is no longer the primary challenge. “I don’t think the question is generating data,” he said. “The question is...

Fuel Prices

Kyrgyz Government Considers Countermeasures as Fuel Prices Rise

In recent months, there has been a gradual but steady increase in motor fuel prices in Kyrgyzstan, driven in part by higher import costs from Russia, the country’s main supplier of gasoline and diesel. Analysts have linked pressure on regional fuel markets to higher global crude prices following the U.S.-Israeli war with Iran, as well as reduced Russian refinery output after Ukrainian drone strikes on oil-processing facilities. In Bishkek, AI-92, a widely used lower-octane gasoline grade, cost an average of 78.4 soms (about $0.89) per liter as of May 14, making it more expensive than comparable fuel in both Russia and Kazakhstan. On May 21, Chairman of the Cabinet of Ministers and Head of the Presidential Administration Adylbek Kasymaliev met with the heads of the country’s major fuel trading companies to discuss domestic fuel supplies. Kasymaliev said the latest price increases were linked to instability in the Middle East, which has pushed up international petroleum prices. According to him, the government has so far managed to prevent sharp increases at gas stations through the use of accumulated fuel reserves. Officials also reviewed possible financial and tax support measures for the sector if instability in global markets continues. Among the options under consideration is direct state subsidization of fuel imports. Kasymaliev urged fuel traders to work closely with the government to help maintain supplies and limit pressure on consumers. He also instructed authorities to monitor the market for signs of hoarding, artificial fuel shortages or speculative price increases. Despite rising fuel prices in Kyrgyzstan, the country's fuel market remains relatively stable thanks to guaranteed deliveries from Russia. According to the country’s Antimonopoly Regulation Service, current fuel reserves are sufficient for between one and one-and-a-half months. The agency said that if fuel prices continue to rise, the government could introduce additional stabilization measures. These could include temporary tax cuts for importers of Russian fuel, subsidy programs and preferential lending mechanisms. Officials say such measures could help smooth price fluctuations in the domestic market and maintain stability amid the current geopolitical environment. Kyrgyzstan’s annual demand for motor fuel is estimated at approximately 1.6 million tons. According to First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev, the country currently imports around 1.2 million tons of fuel annually. The Junda oil refinery in northern Kyrgyzstan is capable of producing up to 800,000 tons per year. However, the facility is currently undergoing large-scale modernization aimed at reducing harmful emissions. On May 19, Kasymaliev met with the Chinese management of the Junda refinery to discuss the progress of modernization work and the timeline for resuming production. Kasymaliev said bringing the refinery back online would be important for Kyrgyzstan as global energy markets remain volatile.

SMEs

Small Businesses in Kyrgyzstan Struggle With Expensive Loans and Border Delays

Small and medium-sized businesses now account for more than half of Kyrgyzstan’s economy, but entrepreneurs continue to face high borrowing costs, logistical bottlenecks and rising operating expenses, according to First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev. According to Amangeldiev, the share of small and medium-sized enterprises (SMEs) in the national economy has reached 51.7%, making the sector one of the country’s key drivers of employment and domestic demand. “The main obstacle at the moment is access to financing,” he said during a press conference in Bishkek. Amangeldiev noted that average lending rates in Kyrgyzstan remain at around 19-20%, while the profitability of many businesses does not exceed 15%. As a result, borrowed capital becomes prohibitively expensive, limiting companies’ ability to expand. The government is currently negotiating with the banking sector to reduce loan costs and has already allocated approximately $3.4 million to support small and medium-sized businesses. Authorities have also introduced interest-rate subsidies to expand entrepreneurs’ access to financing. In addition to expensive credit, businesses continue to face logistical and customs-related difficulties. According to Amangeldiev, delays in certification procedures and border clearance disrupt supply chains and reduce trade turnover. “While cargo remains stalled at the border, entrepreneurs’ financial resources are effectively frozen together with the goods,” he said. The government is placing particular emphasis on the agricultural sector, which remains one of the country’s largest employers. The Cabinet of Ministers has instructed financial institutions to accelerate loan issuance for agricultural producers, noting that the speed of capital turnover is critical for agribusiness operations. The Kyrgyz authorities are continuing efforts to bring more businesses out of the shadow economy. In 2024, the government abolished part of the voluntary patent-based trading system and required entrepreneurs, including small traders and some tax-exempt businesses, to use cash registers and digital fiscal systems. The reforms triggered resistance among some entrepreneurs. However, authorities argue that increasing transparency in trade is necessary to broaden the tax base and modernize the economy.

Alatau City

Kazakhstan Plans to Power New Alatau City With Gas and Renewable Energy

Kazakhstan plans to power the future megacity of Alatau City near Almaty through a combination of gas-fired generation and renewable sources, as authorities seek to address chronic electricity shortages in the country’s south while creating a low-carbon “smart city” model. Deputy Prime Minister Kanat Bozumbayev outlined the government’s energy strategy for the project during a briefing in Astana. According to him, Alatau City’s population could reach between 2.8 million and 3 million people by 2050, roughly equivalent to the current population of Almaty. “We expect that Alatau City will rely primarily on gas generation, given the area’s relatively low population density, along with renewable energy facilities,” Bozumbayev said. The new city is being developed on the site of the village of Zhetygen, approximately 50 kilometers from Almaty. The project will also encompass the settlements of Enbek, Zhanaarna and Kuigan, as well as parts of Konaev and the Talgar district in the Almaty Region. Authorities envision Alatau City as a future hub for technology companies, logistics and export-oriented industry. Under the current concept, the city will be divided into four functional districts: the financial and business-oriented Gate District, the educational and medical Golden District, the industrial Growing District, and the entertainment-focused Green District. The government expects rapid growth in both population and industrial activity to drive a sharp increase in electricity consumption. According to official estimates, electricity demand in Alatau City could reach 1.45 gigawatts by 2030 and rise further to 1.7 gigawatts by 2040. For comparison, Almaty’s electricity consumption in 2024 stood at approximately 982 megawatts. During the initial phase over the next three years, the city is expected to require around 50-100 megawatts of electricity. However, once industrial facilities become operational, demand could rise to between 500 and 1,000 megawatts, Bozumbayev said. Authorities have already prepared an infrastructure plan that includes the construction of transmission lines, substations, and new generating facilities. The government’s emphasis on gas-fired power generation is aimed at reducing southern Kazakhstan’s dependence on electricity transfers from northern Kazakhstan and neighboring countries. According to Bozumbayev, the launch of new power plants in Kyzylorda, Turkestan, and other southern regions should eventually create an electricity surplus in southern Kazakhstan, which currently remains energy deficient. The development of Alatau City is also part of Kazakhstan’s effort to modernize its power system and gradually increase the share of renewable energy in the national mix. In recent years, the country has expanded solar and wind power projects while remaining heavily dependent on coal-fired generation. Alongside energy infrastructure, authorities are promoting Alatau City as a testing ground for advanced transportation technologies. Bozumbayev said preliminary estimates suggest that air taxi rides in the city could cost around $1 per kilometer. “As competition develops in the market, prices could decrease,” the deputy prime minister said. He added that the testing of the air taxi system is expected to be completed by 2026, with commercial services potentially launching in 2027. However, Almaty Region Governor Marat Sultangaziev previously stated that full commercial operation of air taxi services...

TCA Interviews

Interview: Kazakhstan Pushes Middle Corridor as Global Trade Routes Shift

As war, sanctions, and disruption reshape trade between Europe and Asia, Kazakhstan is trying to turn the Middle Corridor from an alternative route into a more predictable logistics system. The route, formally known as the Trans-Caspian International Transport Route, links China and Central Asia with the Caspian Sea, the South Caucasus, Turkey, and Europe, bypassing Russia. For Kazakhstan, the project is both economic and geopolitical. It promises faster access to foreign markets, new transit revenue, and a stronger role for the country as a logistics hub between China and Europe. However, the corridor still faces practical constraints, including port capacity on the Caspian Sea, uneven digital systems, border procedures, tariffs, and coordination between several states and operators. The Times of Central Asia spoke with Alua Korpebayeva, Head of the Project Office for Transport and Logistics under the Presidential Administration of Kazakhstan, about what still needs to change and how Kazakhstan views the corridor’s long-term role. TCA: Why has the Middle Corridor become more urgent for Kazakhstan and Central Asia, and how much have the war in Ukraine and tensions around Iran and the Persian Gulf changed the calculation? Alua Korpebayeva: The government of Kazakhstan has assigned the national railway company, Kazakhstan Temir Zholy, a strategic objective of increasing total transit volumes to 55 million tons by 2026, representing a 65% increase compared to last year. This target reflects the scale of the country’s ongoing transport transformation. Achieving this goal is closely tied to the development of the Middle Corridor. The route is especially important because it is becoming a foundation for stable and predictable supply chains in global trade. The Middle Corridor provides Central Asian countries with an opportunity to strengthen connectivity with both Europe and China while increasing the region’s role as an independent transport and logistics hub. Geopolitical factors have undoubtedly increased business interest in alternative routes. For Kazakhstan, however, development of the Middle Corridor is primarily part of a broader effort to expand transport capacity and improve logistical resilience. That is precisely why deeper regional cooperation is so important. Unlocking the corridor’s full potential requires close coordination among all participants, from infrastructure modernization and tariff harmonization to end-to-end digitalization and simplified customs procedures. The World Bank has noted that a fully functioning Middle Corridor could strengthen supply-chain resilience and, if accompanied by investment and efficiency measures, could triple freight volumes and cut transportation times in half by 2030. TCA: Are Kazakhstan and its partners moving toward unified transit rules and tariffs along the corridor? What has already been agreed, and where do gaps remain? Alua Korpebayeva: Work on creating unified transit rules and coordinated tariff policies is ongoing. The current focus is shifting from fragmented national tariffs toward a unified through-route pricing system across the corridor. Within the framework of the Action Plan for Eliminating Bottlenecks along the Trans-Caspian International Transport Route, signed by the railway administrations of Kazakhstan, Azerbaijan and Georgia, the parties agreed to establish a single long-term tariff for the route. In practical terms,...

GDP

Why Kazakhstan Is Moving Ahead in GDP Per Capita

The International Monetary Fund has projected Kazakhstan to reach roughly $23,170 in nominal GDP per capita by 2031. On the same current-dollar measure, it is projected to pass China around 2026 and Russia by 2031. The comparison is a milestone, but it requires perspective. It is neither a purchasing-power verdict nor a comprehensive measure of household welfare. It nevertheless marks Kazakhstan’s entry into a higher income band. The question is how a state that began independence amid post-Soviet economic disruption reached this stage. How Kazakhstan Reached This Point Kazakhstan’s present position rests on a three-decade progression of state capacity, resource development, and institutional learning. When the Soviet Union collapsed, the country did not inherit a working growth model. It inherited broken production chains, institutional rupture, and inflation. It therefore faced the task of building a market economy out of an administrative-command system. In current U.S. dollars, GDP per capita stood near $1,400 in 1991, and exceeded $14,000 by 2024; in constant-dollar terms, the gain was smaller but still substantial. Hydrocarbons supplied the base, but political institutions and leadership acumen determined how much of that base could survive volatility. The path since 1991 has not been smooth. The 1990s brought collapse and stabilization. The 2000s brought hydrocarbon acceleration, foreign direct investment, and a rise in nominal GDP per capita climbing from a little more than $1,000 in 2000 to more than $8,000 in 2008. The global financial crisis interrupted the rise without destroying the model. The early 2010s brought recovery. The 2014–2016 oil-price and exchange-rate shock then tested the foundations already built, as the current-dollar figure fell sharply while real output per person proved more stable. COVID imposed another interruption. The post-2020 rebound belongs to that sequence. The Tokayev agenda belongs to this third stage of institutional learning. It did not create the GDP per capita trajectory over three decades, but today the issue has shifted from accumulation to stewardship. The inherited growth model had to be made more competitive, more rules-based, more socially visible, and more sustainable. Since 2022, the government has treated de-monopolization, asset recovery, social investment, and private-sector development as connected elements of the same governing effort. The IMF’s latest assessment shows the pressure inside that effort: growth remains strong, supported by oil output and non-oil activity, while fiscal, inflationary, and quasi-state-sector pressures still require correction. The Reform Program and Its Results Decree No. 542, signed in May 2024, set out measures to liberalize the economy, limit expansion of the quasi-state sector, revise privatization criteria, strengthen competition, and improve conditions for entrepreneurship. Its operative terms are competition, privatization, reduced state participation, and lower business costs. The decree temporarily halts the creation of new quasi-state entities and provides for an audit of state and quasi-state assets, partly to identify candidates for privatization. It also incorporates reforms affecting procurement and business regulation. The decree seeks to bend Kazakhstan’s accumulated macroeconomic trajectory toward commercial governance. The challenge is not to remove state capacity but to prevent it from crowding out private...