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Kurultai

Japarov Outlines Development Priorities at Fourth People’s Kurultai

Kyrgyzstan’s fourth People’s Kurultai, a national forum for direct dialogue between citizens and state leadership, was held in Bishkek on December 25-26. Addressing delegates, President Sadyr Japarov outlined the government's economic, social, and environmental priorities for the coming years. Sustained Economic Growth Japarov described the past three years as a period of strong economic performance, with average annual GDP growth of 9.8%. Real GDP grew by 10.2% in the first 11 months of 2025. GDP per capita in 2024 reached approximately $2,513. Unemployment dropped to 3.7%, while the poverty rate declined from 29.8% to 25.7% year-on-year. Small and medium-sized enterprises (SMEs) have emerged as the backbone of the economy, with their contribution to GDP rising from 42.6% to 51.7% during the first nine months of 2025. National Development Program Through 2030 Japarov presented the government’s National Development Program through 2030, which is centered on four key pillars: industrialization, transformation into a regional transport and logistics hub, agricultural and tourism development, and expansion of green energy. The industrialization strategy includes the creation of industrial and technology zones and the construction of new production facilities to double industrial output by 2030. Large-scale investments in railways, highways, logistics centers, and warehouses are expected to bolster Kyrgyzstan’s role as a regional transit corridor. Tourism is also a major focus. Japarov emphasized efforts to modernize the sector in line with international standards, citing the construction of new hotels, roads, airports, tourist routes, and recreational infrastructure. By 2030, the tourism sector is projected to contribute 7% to GDP. Agricultural Development and Food Security With nearly 58% of the population living in rural areas, agriculture remains a strategic priority. Japarov stated that Kyrgyzstan is currently self-sufficient in six of nine key food products, milk, potatoes, vegetables, meat, eggs, and sugar. Agricultural reform centers on the development of agro-industrial clusters that bring together farmers, processors, logistics providers, and financial institutions to create integrated value chains. The goal is to shift from raw-material exports toward higher-value-added production. Climate Change and Water Resources Japarov also warned of worsening climate-related challenges, particularly declining water resources. Over the past 70 years, Kyrgyzstan has lost around 16% of its glacier area, endangering river flows, irrigation systems, and hydropower production. Lake Issyk-Kul is of particular concern. Since the mid-19th century, the lake’s water level has dropped by nearly 14 meters. The number of rivers feeding into the lake has declined from more than 100 to approximately 30-35. The president cautioned that continued degradation could have serious environmental and socioeconomic consequences. Water scarcity, he noted, also threatens food security, with 95% of national water consumption tied to agriculture. He called for more efficient irrigation, glacier protection, and expanded reforestation efforts. From Social Spending to Development Focus Japarov’s remarks were echoed by Chairman of the Cabinet of Ministers Adylbek Kasymaliev, who addressed parliament a day earlier. Kasymaliev stated that the state has shifted from a “social economy” to a “development economy.” In 2025, 35% of government spending was allocated to the production sector, compared to 23%...

Transportation

Drone Delivery Pilot Project to Launch in Almaty

A pilot project for drone-based goods delivery is set to launch in Kazakhstan’s largest city, Almaty. The initiative follows the signing of a memorandum between the Ministry of Artificial Intelligence and Digital Development of Kazakhstan and the private company Freedom Lifestyle. According to the ministry, the agreement outlines plans to jointly test drone delivery services in urban settings, with an emphasis on safety, regulatory compliance, and public convenience. Freedom Lifestyle will finance and implement the project, integrating unmanned delivery into its digital platforms. Since early 2025, the company has been building a team of drone operators and testing technology at its Freedom X R&D laboratory. The ministry will focus on developing regulatory frameworks, ensuring aviation safety, and facilitating the integration of drone technology into the urban infrastructure. Gizzat Baitursynov, Chairman of the Committee on Digital Assets and Breakthrough Technologies, stated that the pilot phase will help test the system in real-world conditions and inform the creation of long-term regulatory solutions. The pilot will involve drone delivery of food, daily necessities, and medicines. Each drone will be capable of carrying up to 10 kilograms over a 3-kilometer radius between locations in the upper and central parts of the city. Flights are scheduled to take place during daylight hours and in favorable weather. To minimize risks, drones will operate primarily over green zones and along designated street corridors. Each vehicle is equipped with safety systems, including parachutes and autonomous control in case of communication loss. As the system’s safety and efficiency are validated, the number of drones and service coverage will be expanded, including potential rollouts in rural areas. Kazakhstan has already seen increasing adoption of drone technologies. As previously reported by The Times of Central Asia, unmanned systems are currently used for agricultural land monitoring and are being developed for public safety applications.

Tax Reform

Are Kazakhstan’s Small Businesses Really Leaving Over Taxes?

As Kazakhstan prepares for tax reforms set to take effect in 2026, a new wave of panic has surfaced in the national discourse, one suggesting that small businesses are facing a stark choice: shut down or relocate to neighboring countries promising more favorable tax environments. This narrative has gained traction twice in the second half of 2025. The first wave came in mid-autumn, triggered by reports suggesting that Kazakhstani entrepreneurs were looking to move operations to Kyrgyzstan or Uzbekistan. These claims quickly spread across Kazakh social networks, particularly Threads. However, early signs indicated that the alarm was not being sounded by small businesses themselves, but by representatives of the B2B services sector, especially consultants and accountants. Media outlets amplified comments that stirred fear, reinforcing what increasingly appeared to be media-driven panic. One such moment came in late September when the Kazakhstan Association of Tax Consultants hosted a presentation by its chairman, Saken Karin, titled “Tax Reality 2026: Opportunities and Risks.” Karin warned that the proposed reforms would “tear apart the B2B and B2C sectors,” criticizing state approaches to tax administration. Even then, experts argued that large-scale relocation of Kazakhstani businesses made little practical sense. “Which Kazakhstani businesses can realistically relocate to Kyrgyzstan? Probably only IT companies, which are location-independent. Most SMEs in Almaty rely on the quasi-public sector or the domestic market, which is considerably larger and wealthier than that of our neighbors,” said financier Rassul Rysmambetov. The numbers back this up: in 2024, the economy of Almaty alone reached $60 billion, compared to Kyrgyzstan’s national GDP of approximately $17.5 billion. Despite this, a second wave of panic is now gaining momentum, this time shifting focus to Uzbekistan as a destination for potential business migration. Once again, social networks, particularly Threads, are amplifying the noise, citing interviews such as one with tax expert Maxim Baryshev, who praised the tax systems of Uzbekistan and Kyrgyzstan. Baryshev represents the professional accounting organization Uchet.kz. His colleague, Uchet.kz manager Timur Abiev, has previously spoken out against what he views as unfounded panic surrounding tax reform. Despite growing anxiety on social media, government officials have yet to launch a strong counter-narrative. This lack of response reinforces the idea that panic is being stoked by peripheral sectors rather than the business community itself. When Finance Minister Madi Takiev was asked about claims of a mass relocation of small businesses to neighboring countries, he dismissed them as unfounded. He argued that tax thresholds and turnover requirements in those countries are broadly comparable to Kazakhstan’s and noted that businesses relocating abroad would still be subject to domestic taxation if their economic center of interest remained in Kazakhstan, making such moves economically unviable. As for the accounting industry, its vocal opposition to reform may be tied to structural weaknesses. Kazakhstan’s accounting sector has been slow to adapt to changing demands and is struggling to train enough professionals to meet market needs. The number of established training institutions remains small. A recent government meeting focused on SME support included plans...

Meat Exports

Kazakhstan Meat Exports Surge in 2025

Kazakh meat producers surpassed their total 2024 export figures within the first 10 months of 2025, according to the Ministry of Agriculture. In 2024, Kazakhstan boosted exports of processed beef by 1.4 times to more than 22,000 tons, and lamb by 2.2 times to 18,000 tons. These milestones were exceeded in 2025. Between January and October, beef exports rose 1.7 times year-on-year to reach 30,200 tons, while lamb exports increased 1.9 times to 25,500 tons. “This growth is due to high demand for high-quality Kazakh meat from foreign partners,” the ministry stated. In 2025, the Ministry of Agriculture implemented several measures aimed at expanding export markets and strengthening Kazakhstan’s presence in the global meat trade. Negotiations with seven countries resulted in the signing of 16 veterinary certificates. New export channels were opened for a range of products, including: Milk, beef, lamb, poultry, honey, and fish to Azerbaijan Live cattle to Mongolia Animal feed to Morocco Hides and wool of ungulates to Iran Additionally, the European Union opened its market to Kazakhstani beekeeping products. Efforts are also underway to expand exports to 12 more countries, including Japan, Malaysia, South Korea, the UAE, Jordan, and Pakistan. Discussions are ongoing with Saudi Arabia, Qatar, the United Kingdom, Canada, and Hong Kong regarding potential exports of dairy products, feed, and honey. The ministry highlighted veterinary welfare as a cornerstone of Kazakhstan’s export strategy. A nationwide modernization program is currently in progress: 400 new veterinary stations have been constructed and 890 units of specialized equipment and machinery procured. A key development is the opening of a modern veterinary laboratory in East Kazakhstan, supported by China. This facility will help unlock exports of livestock products, including cattle hides, poultry meat, and by-products, to the Chinese market. Required protocols have been signed, and Kazakh enterprises have already passed the necessary inspections. As previously reported by The Times of Central Asia, Kazakhstan is also preparing to enter the Turkish market, where Kazakh beef prices could be roughly double those in China.

Migrant Workers

More Than a Third of Migrant Workers in Kazakhstan Are Chinese Citizens

More than 35% of all foreign nationals officially working in Kazakhstan are Chinese citizens, according to data published by the Ministry of Labor and Social Protection of the Republic of Kazakhstan. As of December 1, 2025, a total of 14,103 foreign citizens were employed in Kazakhstan under permits issued by local executive authorities. The largest group of labor migrants comprises Chinese nationals, 5,604 individuals, representing over 35% of the total. They are followed by citizens of Uzbekistan (2,110 people, about 15%), Turkey (1,036 people, over 7%), and India (943 people, more than 6%). Migrants from other countries make up roughly 35% of the foreign labor force, a proportion nearly equal to that of China. In 2025, the structure of permits for foreign labor included 537 issued to managers and their deputies (first category), and 2,244 to heads of structural divisions (second category). Most foreign workers fell into the third and fourth categories, specialists (3,784 people) and skilled workers (1,271 people). Additionally, 2,299 permits were granted for seasonal work, and 3,970 were issued as part of corporate transfers. The ministry reported that 1,817 employers in Kazakhstan currently utilize foreign labor. These companies also employ more than 334,000 Kazakhstani citizens, who make up about 96% of their total workforce. By sector, the highest number of foreign workers are employed in construction, 4,993 people, just over 35%. Other major sectors include agriculture, forestry, and fisheries (2,316 workers, 16.5%), mining and quarrying (1,235 workers, about 9%), and manufacturing (1,155 workers, approximately 8%). To safeguard the domestic labor market, Kazakhstan sets an annual quota for the employment of foreign workers. In 2025, the initial quota was 0.2% of the workforce, or 14,800 permits. This figure was raised to 16,500 in March at the request of regional authorities. In August, the quota was increased further to 0.25% or 19,400 permits, following the expansion of the list of professions eligible for seasonal foreign workers. It was later revised down to 16,700 permits, based on updated regional needs. As previously reported by The Times of Central Asia, more than 80,000 Russian citizens received residence permits to work in Kazakhstan between January 2023 and September 2024.

Logistics

U.S. Logistics Companies Look to Kyrgyzstan for Talent and Digital Solutions

Kyrgyzstan recently hosted CABXPO-2025, an international business and logistics forum that highlighted the country’s growing role as a point of interaction between Central Asia and global logistics markets. Held with the participation of the High-Tech Park, the forum brought together more than 500 companies from across the region. The Park, operational for over a decade, has become a key pillar of Kyrgyzstan’s expanding digital economy. One of the most notable aspects of CABXPO-2025 was the presence of senior executives and owners from major American freight companies. Their visit to Bishkek provided a platform for exchanging industry expertise, recruiting talent, exploring digital logistics solutions, and attracting Kyrgyz dispatchers to work with the United States freight market. According to Chubak Temirov, Deputy Director of the High-Tech Park, the forum stood out for its inclusion of investors from Silicon Valley, who expressed interest in identifying promising IT startups in Kyrgyzstan and other Central Asian countries. Nevertheless, a large portion of attendees represented transport and logistics businesses, particularly those operating in the U.S. market. Temirov noted that long-haul truck driving remains one of the most in-demand professions among Kyrgyz labor migrants heading to the U.S. and Europe. In recent years, several Kyrgyz nationals have successfully established their own transport companies in the U.S., managing fleets of hundreds of trucks. These examples of social mobility have become an important source of motivation for younger generations. [caption id="attachment_41411" align="alignnone" width="300"] @TCA[/caption] At the expo, several American companies with Kyrgyz roots were actively recruiting. Many base their dispatch operations in Bishkek or Osh while managing freight movements across the U.S. Forum participants were able to enroll in two-month dispatcher training programs, with company representatives offering employment upon completion. Aidar Abitov, a representative of a U.S.-based freight carrier, told The Times of Central Asia that his company operates more than 600 trucks and continues to expand. While the physical transportation takes place in the U.S., the company’s dispatch and technical support operations are located in Bishkek. Employees undergo training in areas such as cargo booking, transport coordination, and working with brokers, becoming official members of the U.S. company without leaving Kyrgyzstan. English proficiency remains a key requirement. The company’s medium-term goal is to support a fleet of 1,000 trucks. The forum also drew attention to IT innovations from Kyrgyzstan and Uzbekistan. A team from Tashkent showcased real-time software for monitoring cargo and vehicle fleets. The system tracks truck locations, vehicle condition, and driver behavior, including signs of fatigue or drowsiness. According to the developers, their solutions are already in use by thousands of logistics companies in the U.S., managing tens of thousands of trucks. One of the developers, Azimjon Akhmadjonov, told The Times of Central Asia that participating in CABXPO was primarily an opportunity to exchange ideas and build professional networks. He highlighted the role of such events in connecting Kyrgyz and Uzbek professionals working in the United States and in helping form a cross-border community of experts. The Kyrgyz government has positioned forums such as CABXPO as...