Business & Economy - The Times Of Central Asia

Viewing results 7 - 12 of 1460

The Battle for Control Over Central Asia’s Digital Future

Central Asia is digitalizing quickly. Governments across the region have invested in smart cities, 5G, and AI-powered platforms. Kazakhstan ranks 24th in the world in global e-government indexes, and in Tashkent and Bishkek, young, tech-savvy populations are pushing for innovation. But such progress is not without risks. A new report from the German Marshall Fund (GMF), a Washington-based think tank, outlines how Central Asia is becoming ever more reliant on Chinese and Russian technology. These two countries, the report argues, are using digital tools not just to supply infrastructure but to shape how governments in the region manage data, surveillance, and speech. Beijing and Moscow’s tech exports act as snares, tying customers into their own economies. “Central Asian governments are aware of these challenges,” Dylan Welch, the author of the report and a China analyst at the GMF, told The Times of Central Asia. But he notes that it can be difficult to convince policymakers to prioritize the dangers of such overexposure. “For the national leaders, their imperative is to deliver economic growth because they have these young, dynamic populations that need jobs… if they don't deliver on that, then they're in for a long period of instability at home,” he said. This makes Chinese and Russian offers to develop their digital industries extremely tempting. An Entrenched Presence The report coincides with a flurry of Russian and Chinese engagement in the region. Over the weekend, Kazakhstan announced that between them, Beijing and Moscow will be responsible for delivering a new generation of nuclear reactors to the country, currently leaving French and Korean alternatives out in the cold. Then came this week’s visit of Chinese President Xi Jinping to Astana for a summit with the five Central Asian leaders. On the digital front, one notable announcement from this summit included a plan to develop an Artificial Intelligence Cooperation Center in Kyrgyzstan. China has used the term “Digital Silk Road” to describe its investments in Central Asia, and it has built much of the physical infrastructure behind the region’s digitization drive. For its part, Russia has exported its software, legal models and surveillance practices. Taken together, these systems are helping local governments tighten control over digital life. “This strategic integration makes it more difficult for regional states to diversify in the future, even though many continue to pursue multi-vector foreign policies aimed at balancing global partnerships,” Yunis Sharifli, Non-Resident Fellow at the China-Global South Project, told TCA. Where the Vulnerabilities Lie The report uses a “technology stack” framework to explain the problem. This framework looks at five layers: network infrastructure, data storage, consumer devices, digital platforms, and government policies. Across these layers, it argues, Central Asia is exposed to Chinese and Russian influence. Take Kazakhstan. It may be the most advanced digital economy in the region, but most of its internet traffic still passes through Russia. Telecom firms across the region are also required to install a Russian-made surveillance technology known as SORM (System for Operative Investigative Activities), which can intercept internet...

Home Opinion Head Uzbekistan Uzbekistan Opinions Uzbekistan Features Business & Economy Uzbekistan Business & Economy Opinions

Opinion: The U.S. Dollar Loses Its Luster as the Uzbek Som Shines

From May 20, 2025, to June 19, 2025, the U.S. dollar declined from 12,885 Uzbek som to 12,625 som, reaching its lowest level since early December 2023. This trend is anticipated to persist. Over the past 30 days, the dollar has depreciated by 2.08% against the som. The Central Bank of Uzbekistan adheres to a flexible exchange rate mechanism, commonly referred to as a floating exchange rate. This approach allows the value of the Uzbek som to be primarily influenced by market forces of supply and demand, rather than being fixed or pegged to another currency. In the context of Uzbekistan, the Central Bank defines the market-determined exchange rate, permitting the som to fluctuate freely based on the interactions between buyers and sellers in the foreign exchange market. In 2017, Uzbekistan transitioned to a flexible exchange rate regime, aligning the som with market conditions and narrowing the gap between the official and parallel exchange rates. This move is expected to enhance export competitiveness, as noted by the European Bank for Reconstruction and Development (EBRD). While the market predominantly determines the exchange rate, the Central Bank reserves the right to intervene in the foreign exchange market to mitigate excessive fluctuations or address significant imbalances. However, it does not maintain a fixed exchange rate. The primary objective of the Central Bank is to uphold price stability, ensuring low and stable inflation. The flexible exchange rate regime empowers the Central Bank to utilize interest rates as a tool to influence inflation and manage the overall economy. Since 2020, the Central Bank of Uzbekistan has been implementing an inflation targeting framework that guides its monetary policy decisions, including those related to the exchange rate. Uzbekistan has recently achieved a remarkable milestone, with its international reserves soaring to an unprecedented $49.6 billion, primarily driven by a substantial increase in gold prices. This significant figure, recorded at the end of last week, represents the highest level of international reserves since the Central Bank of Uzbekistan began tracking this data in 2013. Uzbekistan has been on a remarkable journey of financial growth, marked by a sustained increase in its reserves over the past five months. Since the beginning of the year, the country's reserves have increased by an impressive $8.48 billion, reaching a new historic high of $49.66 billion. In May alone, the reserves saw a substantial boost of $410.2 million, translating to a 0.8% increase compared to April. This consistent upward momentum not only highlights the resilience of Uzbekistan's economy but also demonstrates its ability to adapt and thrive in a dynamic global landscape. Central to this financial ascent has been the role of gold, which has enjoyed significant demand due to its elevated prices in international markets. Over the last month, gold prices surged by 3.27%, rising from $3,280 to $3,390.07 per ounce. When examining the broader trends, it is evident that gold has significantly appreciated, with a striking 25.5% increase since the start of this year and an even more impressive 41.3% surge over...

Home Uzbekistan Uzbekistan Features Uzbekistan Business & Economy Business & Economy Features

Uzbekistan Joins BRICS Bank, Strengthening Global Ties

Uzbekistan’s bid to join the New Development Bank (NDB), commonly known as the BRICS Bank, has been officially approved, marking a notable step for the country as it seeks to enhance its engagement within the global financial and economic framework. Established by Brazil, Russia, India, China, and South Africa, the NDB aims to finance sustainable development projects and offer alternatives to traditional Western-led financial institutions such as the IMF and the World Bank. Membership was also approved for Colombia, with applications from Ethiopia and Indonesia currently under review. A New Opportunity for Uzbekistan Uzbekistan's membership in the BRICS Bank provides a potential avenue to strengthening economic ties with major emerging markets. The country's strategic position in Central Asia and its natural resources present opportunities for investments in infrastructure, renewable energy, and agriculture, aligning with the bank’s priorities on sustainable development. Uzbekistan’s recent economic reforms aimed at liberalization and improved governance make the BRICS Bank a practical partner for securing diversified funding sources for large-scale initiatives. Role of the BRICS Bank and Implications The NDB focuses on funding projects in emerging economies to promote growth while reducing dependence on traditional Western lenders. Since its inception in 2014, the bank has supported initiatives in renewable energy, infrastructure, and technology. The inclusion of Uzbekistan indicates the NDB’s interest in expanding its reach beyond its founding members. Uzbekistan's entry into the BRICS Bank takes place in the context of shifts in the global economic landscape, as countries seek new financial partnerships. For Uzbekistan, this step aligns with its foreign policy approach of maintaining balanced ties with global powers while engaging with the West, the Middle East, and neighboring countries. China, a driving force within the NDB and the Belt and Road Initiative (BRI), sees Uzbekistan’s strategic location as beneficial for advancing regional trade and connectivity, while Russia could view the membership as a positive development for maintaining close regional ties while navigating geopolitical challenges. Shared Priorities For the NDB, Uzbekistan offers a gateway to further investments in Central Asia, aligning with its mission to support emerging markets. For Uzbekistan, meanwhile, membership represents a significant development in its integration into international financial networks, potentially opening up opportunities for sustainable development projects that could contribute to the country’s economic growth and strengthen its global standing. The BRICS summit in 2025 will be held in Rio de Janeiro on July 6 and 7.

Business & Economy Uzbekistan Uzbekistan Business & Economy

Moody’s Upgrades Outlook on Uzbekistan’s Credit Rating to Positive

Moody’s Ratings has revised Uzbekistan’s credit outlook from stable to positive, while affirming its long-term issuer rating at Ba3, a level that denotes speculative or non-investment grade status. The improved outlook reflects increased confidence in the country’s ongoing structural reforms and governance improvements. According to Moody’s, Uzbekistan’s efforts to strengthen public sector governance and liberalize key sectors such as energy could enhance policy effectiveness and lay the foundation for sustainable economic growth. Recent steps include restructuring the supervisory boards of all state-owned enterprises (SOEs) and banks, with an increased presence of independent members. The government is also advancing legislation on conflict of interest, asset declaration, and whistleblower protections, measures that signal a broader commitment to transparency. The energy sector reforms highlight the government's readiness to undertake challenging but necessary changes. Tariffs have risen sharply as part of a phased plan to achieve full cost recovery by 2027-2028. While inflationary pressures persist, the government has sought to mitigate their impact through targeted increases in public sector wages and pensions and by scaling back subsidies. Privatization remains central to Uzbekistan’s reform strategy. The government plans to reduce the state’s share in the banking sector from 65% to 46%, following the successful privatization of Ipoteka Bank. The recently established National Investment Fund, managed by Franklin Templeton, will oversee holdings in 18 major enterprises. Initial public offerings are planned for several large firms, including Navoi, Uzbekistan’s largest taxpayer. Moody’s forecasts GDP growth of 5.8% in 2025 and 5.7% in 2026, supported by increased investment in energy and transport infrastructure under the Uzbekistan 2030 Strategy and rising levels of foreign direct investment. The fiscal deficit declined to 3.3% of GDP in 2024 and is projected to remain below 3% in the coming years. Although Uzbekistan’s public debt remains moderate, liabilities linked to SOE borrowing and public-private partnership (PPP) projects are increasing. To manage these risks, the government has imposed caps on new PPPs and now requires official approval for external borrowing by state-owned entities. Moody’s also pointed to persistent institutional weaknesses, low per capita income, and governance concerns, as well as regional geopolitical risks. However, the agency noted that if current reform momentum continues and economic indicators improve further, an upgrade to the country’s credit rating is possible. Uzbekistan’s credit profile is bolstered by its diversified economy, strong growth outlook, and prudent fiscal management. With continued reforms and growing investor confidence, the country appears increasingly well-positioned for long-term economic stability.

Home Business & Economy Kyrgyzstan Business & Economy

Kumtor Launches Tire Retreading Program to Cut Costs and Waste

Kumtor, Kyrgyzstan’s largest gold mining operation, has initiated a tire retreading program for its fleet of large Caterpillar mining dump trucks. The announcement was made by Kubat Abdraimov, chairman of the board of the state-owned Kyrgyzaltyn company, which oversees the Kumtor enterprise. The retreading work is being carried out at a facility in Tokmok. The first set of refurbished tires has already been installed on dump trucks and is undergoing operational testing at the mine. If successful, the program will expand, with the Tokmok plant expected to retread between 200 and 300 tires annually. “This will save more than $1.5 million per year. At the same time, we are solving an important environmental problem by reducing waste and reusing resources,” Abdraimov said during a site inspection of Kumtor’s production facilities. New tires for Caterpillar dump trucks can cost up to $30,000 each. In the high-altitude conditions of the Kumtor mine, located at 3,500 to 4,500 meters above sea level, tire wear is especially rapid, making operations significantly more expensive. According to the company’s press service, the refurbished tires were delivered to the mine at the end of May. One vehicle fitted with the retreaded tires has already logged over 1,000 kilometers and more than 100 hours of work under full load. The condition of the tires is being monitored continuously. In the early years of Kumtor’s development during the 1990s, the initial tire supply came from the Belarusian manufacturer BelAZ. However, the products proved unsuitable for the mine’s extreme conditions, leading to a switch to Canadian suppliers along with other imported components. Abdraimov also highlighted the critical contribution of technical personnel to the reliability of mining operations. “The mine uses modern mining and auxiliary equipment. Work is carried out around the clock in challenging weather and at high altitudes. The reliability and qualifications of the repair crews are key to sustainable operation,” he said. Industry experts suggest the tire retreading initiative could be a foundational step in creating a domestic industrial cluster focused on the repair and maintenance of mining equipment in Kyrgyzstan.

healthcare Home Tajikistan Tajikistan Business Economy Tajikistan Features Business & Economy

Tajikistan’s Pharmaceutical Sector Remains Heavily Dependent on Imports

Despite possessing vast reserves of medicinal plants, Tajikistan's pharmaceutical industry remains heavily reliant on imports. Experts are increasingly questioning why the sector has been reduced to a basic "buy-and-sell" model and what is hindering the use of the country’s natural resources. Abundant Resources, Limited Output Tajikistan is home to more than 3,500 species of medicinal plants, including licorice, mint, valerian, chamomile, motherwort, and even rare saffron. However, this natural wealth has not translated into pharmaceutical independence. In the past two years alone, Tajikistan has imported roughly $84 million worth of medicines. Currently, 67 pharmaceutical companies are registered in the country, producing around 600 types of drugs. Still, imported pharmaceuticals dominate the market. According to industry observers, the sector has evolved into a retail-focused trade, rather than a hub for research-based production. During the Soviet era, pharmaceuticals in Tajikistan were closely integrated with scientific institutions. Research institutes flourished, pharmacies compounded custom medications, and both training and quality control were rigorous. Following the collapse of the USSR, this infrastructure disintegrated. The responsible state committee was dissolved, and a previously regulated system was replaced by an unstructured market. Today, training programs are often accelerated, pharmacists’ qualifications are inconsistent, and the emphasis has shifted from treatment to sales. A Pharmacy That Heals Amid this decline, one notable exception is found in the city of Isfara, where a phytotherapy department has been established at the local hospital. Spearheaded by pharmacist Abubakr Faiziev, the department operates out of a restored facility where locally gathered herbs are used to produce traditional infusions and decoctions. Faiziev personally collects about half of the ingredients. “It is important to me that the pharmacy heals, not just sells,” he said. According to Faiziev, approximately 80% of patients return for follow-up treatment, often bypassing conventional doctors due to the perceived effectiveness of herbal therapies, a sentiment echoed even among members of the local elite. A Science in Decline Faiziev laments the erosion of scientific ambition in the country. "People now ask for business plans and guaranteed profits instead of pursuing knowledge. But science doesn’t work that way," he said. Research, he noted, has become sporadic and often relies on outdated data, with little interest from private companies in investing in innovation. Young professionals, too, are increasingly opting for commercial routes. “They prefer to open pharmacies for fast income rather than engage in research,” he explained. “There are many pharmacists now. But we must transform quantity into quality. Without passion for the profession, one cannot become a skilled expert.” The State’s Role and Untapped Potential President Emomali Rahmon has repeatedly stressed the need to develop the domestic pharmaceutical industry and better utilize Tajikistan’s natural resources. Ongoing reforms include updates to medical university curricula, the opening of laboratories, and the training of technologists and quality control specialists. Yet, experts argue that without a comprehensive, systematic strategy and active engagement from the private sector, these measures are insufficient. Faiziev advocates for the creation of a pharmaceutical technology park and the development of both the domestic...