Business & Economy - The Times Of Central Asia

Viewing results 7 - 12 of 3437

Metallurgy

Kazakhstan to Invest Around $174 Million in Non-Ferrous Metallurgy Projects in 2026

Kazakhstan plans to launch eight projects in the non-ferrous metallurgy sector in 2026, with total investments of around $174 million, the Ministry of Industry and Construction has said. According to the ministry, the sector remains one of the key pillars of the national economy, supported by a substantial resource base that includes deposits of copper, zinc, nickel, lead, aluminum, and precious metals. “In 2026, eight projects are expected to be launched with approximately $173.8 million in investments and the creation of more than 1,500 permanent jobs,” the statement said. The projects include the production of cathode copper, copper wire rod, cable products, aluminum powder, and cast rods made of unalloyed aluminum. One project has already been commissioned, a cathode copper production facility in the Karaganda region. The project involved investments of about $17.3 million and created 512 jobs. “In addition, six projects are currently under implementation, including the production of dore alloy, aluminum billets, and profiles. Their launch is expected in 2027–2028, with total investments exceeding $1.1 billion,” the ministry said. According to the ministry, these projects will create more than 800 jobs, including around 140 in rural areas. Additionally, a further 34 projects are at the planning stage, focusing on the production of dore gold and silver, nickel matte, aluminum, tungsten, lead, and zinc. Total investments in these projects are estimated at $14.9 billion, with the potential to create around 17,100 jobs. The largest projects are planned for implementation in the Kostanay, Pavlodar, Karaganda, and Abai regions. Overall, total investments across 48 current and prospective projects amount to approximately $16.2 billion, with plans to create around 19,400 jobs, a significant share of which will be in rural areas. The Times of Central Asia previously reported that Kazakhstan’s reserves of rare earth metals may have exceeded previous projections following new geological surveys.

Hydropower

Chinese Company to Build Hydropower and Solar Plants in Kyrgyzstan

Construction of a small hydropower plant and a solar power station has begun in Kyrgyzstan’s Jalal-Abad region as part of efforts to expand domestic electricity generation and reduce reliance on energy imports. The groundbreaking ceremony took place on April 28 and was attended by the presidential envoy to the region, Tilek Tekebayev; the project’s scientific supervisor and former Prime Minister Akylbek Japarov; as well as representatives of the Chinese corporation SINOMACH. The project involves the construction of two facilities: a small hydropower plant with a capacity of 5 megawatts and an annual output of around 20 million kWh, and a solar power plant with a capacity of 1 megawatt, generating approximately 1.6 million kWh per year. The total investment, to be implemented under a public-private partnership model, is estimated at $259.8 million. Once operational, the facilities are expected to help reduce electricity shortages in the region and decrease dependence on imports. The project is also expected to create more than 100 jobs and provide irrigation for over 1,000 hectares of arid land. Kyrgyzstan is accelerating the development of small hydropower projects amid rising electricity demand and limited generation capacity. Currently, 48 small hydropower plants are operating in the country, with a combined capacity of around 180 megawatts. Another 50 facilities are under construction, which authorities say will strengthen the country’s energy independence.

Gold

Kyrgyz Jewelers to Receive Discounted Gold as Government Expands Industry Support

Kyrgyzstan’s Cabinet of Ministers has approved a package of support measures for the jewelry industry, implementing a directive from President Sadyr Japarov aimed at improving producers’ access to raw materials. Earlier, Japarov instructed the government to ensure that jewelers could obtain raw materials from the State Fund of Precious Metals and Precious Stones on more favorable terms. Under the new resolution, Kyrgyz jewelry manufacturers will be able to purchase domestically produced gold from the state at a 2% discount to the London Bullion Market Association (LBMA) fixing price. The State Fund will supply precious metals to jewelers in raw form, without the right of resale. To purchase gold, companies must either sign a direct contract with the fund or acquire the metal through a commodity exchange. Jewelers will also be granted deferred payment terms of up to 180 days. Transactions will be conducted at market prices in the national currency, the som. Access to gold scrap and refined bullion will be limited to companies operating under a special tax regime, with confirmed production capacity and compliance with requirements for accounting and the targeted use of raw materials. In addition, the government has approved a preferential lending mechanism for the jewelry sector. Authorities will subsidize interest rates on loans issued by state-owned banks, with approximately $11.5 million allocated to the program. The maximum loan amount will be $1 million, with a term of up to 60 months. The interest rate is set at 6% per annum, with a possible payment deferral of up to 180 days. Funds may be used for production modernization, equipment purchases, and the upgrading of manufacturing facilities. Eligible borrowers include legal entities and individual entrepreneurs registered with the State Tax Service. “The implementation of these initiatives will create a sustainable foundation for the development of the jewelry industry and increase its contribution to the national economy,” the Ministry of Economy and Commerce said in a statement, adding that the measures are expected to reduce costs, expand production, and create jobs. Stalbek Akmatov, head of the Kyrgyz Jewelers Association, told The Times of Central Asia that the industry had been advocating for such measures for many years. According to him, local producers were previously forced to purchase domestic gold at prices about 5% above London market levels, making imports from Russia and Turkey more common, despite higher logistics costs. “Now the situation will change, and the industry has real prospects for development,” Akmatov said.

Labor Market

AI in Kazakhstan to Affect Four Million Jobs in Next Decade, Says Labor Ministry

Around half of all professions in Kazakhstan are expected to change under the impact of AI over the next decade, with some jobs declining and others disappearing entirely, lawmakers and government officials have said. Daniya Yespayeva, Deputy Chair of the lower house of parliament, the Mazhilis, citing data from the Ministry of Labor, stated that by 2035, transformations will affect 562 jobs, about 44% of the labor market, equivalent to roughly 4 million workers. According to her, employment in 46 professions, covering around 362,000 people (about 4% of the labor market), is expected to decline, while 14 professions, employing approximately 49,000 people, may disappear completely. Yespayeva did not specify which professions are at greatest risk. However, Minister of Science and Higher Education Sayasat Nurbek noted that couriers and taxi drivers could be among the first affected. He said that around 700,000 people in Kazakhstan currently work in these sectors through platforms such as Glovo, Yandex, and Wolt. “These are temporary forms of employment. As early as this year, several Kazakh companies are launching autopilot technologies in both taxi services and delivery, so within a few years, couriers and taxi drivers may no longer be needed,” Nurbek said, urging citizens to focus on more sustainable career paths. Earlier reports indicated that a pilot drone delivery project could be launched in Almaty, while driverless taxis are planned for introduction in Astana. Askhat Aimagambetov, a Mazhilis deputy, also warned about risks facing several popular academic fields. According to him, in 2025, the highest competition for university admissions was in programs such as Translation Studies, International Relations, and Law, fields that, in his view, could be among those most affected by automation. Aimagambetov stressed the need to revise the allocation of state-funded educational grants to avoid encouraging training in professions at high risk of decline. He also noted that employment among young developers aged 22-25 declined by nearly 20% over the past year, despite significant investment in IT education. “We are training an army of coders at a time when AI is already writing code itself. It is no longer enough to train ‘coders of yesterday,’” he said. Nurbek agreed with this assessment, pointing to a shortage of specialists in eight key sectors, including advanced manufacturing, digital technologies, clean energy, finance, life sciences, defense, creative industries, and professional services. According to him, part of the gap is being addressed through private-sector involvement. Kazakhstan has established 75 joint laboratories across 19 universities in partnership with companies such as Amazon Web Services, Cisco, Huawei, Schneider Electric, and Honeywell, as well as Eurasian Resources Group, Freedom Holding, and KEGOC. More than 7,500 students are currently studying in these laboratories across 179 disciplines. Business investment in these initiatives has totaled around $5.2 million, although the minister noted that such efforts remain limited in scope. “If this gap is not addressed, the education system will continue to train specialists for yesterday’s economy,” Nurbek said, emphasizing that aligning education with economic needs has become a matter of national security.

Middle Corridor

Middle Corridor Countries Approve 2026 Plan, Focus on Digitalization and Container Growth

On April 24, Astana hosted a meeting of the Board and General Assembly of the international association “Trans-Caspian International Transport Route.” The Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, is a multimodal transport corridor linking China and Europe through Central Asia and the South Caucasus, offering an alternative to routes that pass through Russia. The meetings were attended by representatives of TITR member countries, Kazakhstan, China, Azerbaijan, Georgia, and Turkey, as well as participants from several European countries, including Ukraine, Bulgaria, and Romania, and international partners such as Singapore. The participating countries approved a detailed work plan for 2026, with a key focus on the digitalization of transport processes. Participants agreed to implement electronic document management using digital signatures and to establish direct data exchange between customs authorities and other stakeholders involved in cargo transportation. According to Kazakhstan's national rail company, Kazakhstan Temir Zholy (KTZ), these measures are expected to reduce transit times and improve transparency along the route. The plan also envisages an increase in container traffic, including the transit of 600 container trains from China through Kazakhstan this year. Coordination between ports and terminals on the Caspian Sea will also be strengthened. Overall, the plan is aimed at reinforcing the TITR as a key transit corridor between Asia and Europe. In the first quarter of 2026, Kazakhstan recorded a significant increase in container train traffic along the TITR, underscoring the country’s growing role in Eurasian logistics. A total of 125 container trains transited through Kazakhstan via the corridor, marking a 34.4% increase compared to the same period in 2025. As previously reported by The Times of Central Asia, freight volumes transported along the Middle Corridor through Kazakhstan have grown more than fivefold over the past seven years, increasing from 0.8 million tonnes to 4.5 million tonnes annually.

Fuel Prices

Fuel Prices Surge in Tajikistan Amid Middle East Conflict

Fuel prices at gas stations in Dushanbe have risen sharply since early March, increasing on average by 8-9%. The increase has been driven by domestic factors as well as adverse developments in the global energy market. The most widely used AI-92 gasoline has risen in price from $1.05 to $1.13 per liter. Diesel has followed a similar trend, increasing from $1.14 to $1.24 per liter. Prices for liquefied petroleum gas (LPG) have risen more modestly, by about 6%, to $0.62 per liter. Prices also vary by location, with drivers noting that fuel in central Dushanbe is traditionally more expensive than in outlying areas. Suppliers attribute the increases to higher prices from producers, but the situation largely depends on external supply chains. Russia remains the primary source of petroleum products for Tajikistan. In 2025, the country imported more than 1.2 million tonnes of fuel and LPG from Russia, accounting for over 70% of total imports. Supplies also come from Kazakhstan, Uzbekistan, and Turkmenistan, though their share is significantly smaller. According to official statistics, Tajikistan imported more than 325,000 metric tons of petroleum products in the first quarter of this year, valued at over $251 million, or approximately $772 per metric ton. Compared with the same period last year, import volumes increased by 11.4%, while their total value rose by 8.6%. Experts say external factors are the main driver of rising prices. They point to international media reports that the conflict involving the United States, Israel, and Iran has triggered a chain reaction in the fuel market, affecting the supply chain from crude oil to refining and retail prices. A key factor has been disruption in the Strait of Hormuz, through which roughly 20% of global oil supplies pass. At the same time, price trends have varied significantly across countries. Al Jazeera reported that fuel prices rose by nearly 70% in Cambodia, 50% in Vietnam, 35% in Nigeria, 33% in Laos, and 28% in Canada. In Central Asia, however, price increases have been more moderate, ranging from 2% to 5% in March and April. In Uzbekistan and Turkmenistan, prices have remained largely stable, which analysts attribute to pricing policies by Russian producers and the availability of domestic fuel supplies.