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Drug Trafficking

Uzbekistan Toughens Anti-Drug Laws as Synthetic Narcotics and Online Trafficking Rise

Uzbekistan’s President Shavkat Mirziyoyev has approved tougher measures against drug trafficking and endorsed reforms aimed at protecting public health, particularly among young people, as authorities respond to the growing spread of synthetic drugs and internet-based narcotics sales. According to the presidential press service, Mirziyoyev reviewed proposed legislative changes aimed at protecting public health and the nation’s gene pool from drug abuse. The review also covered road safety concerns. Officials outlined the significance of a recently adopted law that increases criminal liability for the illegal circulation of narcotic drugs, psychotropic substances, their analogues, and other potent substances. The legislation, which had already been passed by parliament, introduces a new chapter in Uzbekistan’s Criminal Code titled “Crimes Against Public Health and the Nation’s Gene Pool.” Mirziyoyev signed the law following the presentation. The new provisions increase penalties for a range of offenses considered particularly dangerous to public health. They also introduce separate criminal liability for organizing illegal drug laboratories, facilitating drug trafficking operations, and running premises used for the illegal distribution or consumption of narcotics. More than 10 categories of drug-related crimes will face tougher punishment under the law. Officials told the president that Uzbekistan’s drug situation has changed significantly in recent years. Traditional narcotics are increasingly being replaced by synthetic drugs, while trafficking methods have shifted toward online platforms and contactless delivery systems. The emergence of clandestine drug laboratories inside the country has also highlighted the need for updated legal and institutional responses. A separate draft law, “On Narcotic Drugs and Potent Substances,” prepared by an interagency working group, was also presented. The proposed legislation identifies seven priority areas of state policy. These include raising public awareness, particularly among women and young people, preventing drug-related crimes committed online, and improving systems for early prevention, diagnosis, treatment, and social rehabilitation of people suffering from addiction. The draft law would also clearly define the responsibilities of 14 government agencies involved in combating drug trafficking and drug-related crime. Authorities plan to tighten oversight of the legal circulation of controlled substances through a digital monitoring system that would track them from import and production to distribution and sale. The presentation also addressed road safety. Officials noted that some traffic accidents resulting in serious injuries or fatalities had involved minors driving vehicles unlawfully. In response, proposals were discussed to improve enforcement mechanisms and increase accountability for such violations. As previously reported by The Times of Central Asia, Mirziyoyev dismissed several senior officials from the Interior Ministry in January, as well as from the National Guard and Emergency Situations Ministry. Among those removed was the head of the Agency for Control of Narcotics and Illegal Firearms, who was criticized for failing to effectively combat the illegal trafficking and use of drugs.

Coal

Kazakhstan Coal Exports Hit 7 Million Tons in Q1 2026

Kazakhstan coal exports reached 7.1 million tons in the first three months of 2026, while the domestic market remained the primary destination for the country’s coal producers, Nikolai Radostovets, executive director of the Republican Association of Mining and Metallurgical Enterprises, said at the VII Coal Industry Forum. Energy Ministry figures have put Kazakhstan’s 2025 coal production at around 115.9 million tons. Of that amount, 85.9 million tons were supplied to the domestic market, including the housing and utilities sector and thermal power plants, while exports amounted to 30 million tons. Kazakhstan’s main coal export destinations remain Russia, Poland, Uzbekistan, Turkey, India, and Malaysia, Radostovets told participants at the Coal Industry Forum, held as part of the Astana Mining & Metallurgy Congress, AMM 2026. Coal output is expected to rise this year to 128.9 million tons. In January-March, nearly 29 million tons of coal were mined, while exports reached 7.1 million tons, according to industry association data. “One of the key tasks for the industry remains ensuring stable supply to the domestic market, including thermal power plants and the housing and utilities sector,” Radostovets said, whilst also stressing that exports remain a crucial part of the sector’s sustainability. “Exports ensure workload for enterprises, foreign currency earnings, tax revenues and stable production programs. Domestic needs are always prioritized, but exports help maintain overall production levels and the financial sustainability of enterprises,” he said. He also warned that Kazakhstan’s coal exports face mounting transportation risks linked to geopolitical shifts across Eurasia, as well as insufficient capacity in regional logistics infrastructure. To preserve export potential, Radostovets said Kazakhstan needs more predictable tariff-setting by transport operators, expanded alternative logistics routes, improved efficiency at the Caspian ports of Aktau and Kuryk, and stronger intergovernmental coordination on transit issues. Meanwhile, Kazakhstan’s Energy Minister Yerlan Akkenzhenov sought to reassure coal producers that domestic demand for their products is likely to grow in the coming years as the government expands coal-fired power generation. “Against the backdrop of rising electricity consumption, industrial growth and the development of the digital economy, reliable baseload generation is becoming increasingly important. In this regard, the government has approved the national project ‘Development of Coal Generation,’” Akkenzhenov said. The program covers 2026-2030 and provides for the construction of new energy facilities, while expanding or modernizing existing installations. This is expected to create additional demand for around 20 million tons of thermal coal per year by 2030. Kazakhstan’s renewed emphasis on coal reflects a wider tension in its energy policy. The government is seeking a route out of electricity shortages and provide reliable baseload generation for industry, data centers, and other energy-intensive sectors, while also maintaining its formal target of achieving carbon neutrality by 2060. Officials have argued that new coal capacity will be paired with cleaner technologies and modern emissions controls, but the scale of the planned expansion underlines how central coal remains to Kazakhstan’s power system. The national project includes eight new coal-generation facilities, including major projects in Ekibastuz, Kurchatov, and Zhezkazgan, as well...

FinTech

Uzbekistan to Host Inaugural Silk Road Finance & Technology Forum in August

Uzbekistan is set to host the inaugural Silk Road Finance and Technology Forum in August, a new international event aimed at advancing the country’s role as a regional hub for financial technology and innovation. According to a joint announcement by the Central Bank of Uzbekistan and the Global Finance & Technology Network (GFTN), the forum will take place in Tashkent from August 24 to 26, 2026. The event will be held at Central Asian Expo Uzbekistan and the Islamic Civilization Centre. It is expected to bring together policymakers, regulators, investors, entrepreneurs, and technology leaders from Central Asia and beyond. The organizers describe the forum as Uzbekistan’s flagship platform for discussions on finance, innovation, and public policy. It is being launched as the country pursues an ambitious strategy to become a leading fintech center in the region. Uzbekistan’s financial technology sector has expanded rapidly in recent years, driven by growing digital adoption and a young population of more than 37 million people. According to the organizers, nearly 70% of the population now uses digital services, creating favorable conditions for the development of financial technologies. The forum comes as Uzbekistan implements a presidential strategy for the sector through 2030. The plan includes attracting $1 billion in foreign investment, training more than 5,000 specialists, licensing more than 200 market participants, supporting more than 100 startup graduates from incubation programs, and testing digital currencies and stable tokens. The Central Bank has also announced plans to expand the country’s financial innovation infrastructure. These initiatives include the creation of a globally accessible Regulatory Sandbox 2.0, the Q-FINEX Quantum Finance Testbed, and a dedicated $50 million venture fund for fintech development. Authorities are also working on regulatory frameworks covering open banking, digital payments, buy now, pay later services, and cybersecurity resilience. The three-day forum will be organized around five main themes: open banking, digital assets and stablecoins, cross-border payments, Islamic finance, and innovation and investment. The event’s theme, “Al-Jabr,” references the Arabic concept of “bringing parts together,” which gave rise to algebra, and honors the legacy of the ninth-century scholar Al-Khwarizmi, who was born in Khwarezm, in present-day Uzbekistan. Organizers say the theme points to the forum’s goal of linking finance with technology policy. The forum is being co-hosted with Ant International and joins GFTN’s global network of events, which includes the Singapore FinTech Festival, the Point Zero Forum in Zurich, GFTN Forum Japan, and the Black Swan Summits. “Innovation flourishes when trust, talent and capital converge,” said Sopnendu Mohanty, group CEO of GFTN. He said the forum would help connect global expertise with regional ambitions and support Central Asia’s emergence as a center for financial innovation. GFTN is a Singapore-based not-for-profit organization established by the Monetary Authority of Singapore in 2024. It promotes financial innovation and inclusion through partnerships with public- and private-sector institutions.

AMM 2026

U.S. Investors Show Growing Interest in Kazakhstan’s Mining Sector

U.S. investors are showing growing interest in Kazakhstan’s critical minerals sector, with attention increasingly focused not only on extraction but also on processing, metallurgy and broader supply-chain development, according to Nicole Rodgers, president of the U.S.-based Alliance for Mineral Security, an industry group representing companies involved in mining, processing and the use of strategic minerals. Rodgers spoke during the panel session “Investment Climate in Mining and Metallurgy” at the Astana Mining & Metallurgy Congress, AMM 2026, where she emphasized that predictability and regulatory consistency are among the most important conditions for attracting global capital. “In our view, Kazakhstan is moving in the right direction, including by harmonizing regulations with international standards, developing early-stage geological exploration, building industrial clusters and moving toward more sophisticated investment structures,” Rodgers said. “At the same time, American investors are interested not only in extraction, but in participating across the entire value chain.” She pointed to an agreement between U.S.-based Cove Capital and Kazakhstan’s national mining company Tau-Ken Samruk on the joint development of the Severny Katpar and Verkhne Kairakty tungsten deposits in the Karaganda region of central Kazakhstan. Under the deal, the investment package includes plans to build two processing plants and a metallurgical facility, with a total projected value of $1.1 billion. Interest from Washington has also been reinforced at the political level. Speaking at the C5+1 Critical Minerals Dialogue in June, U.S. Special Envoy for South and Central Asia Sergio Gor said Washington intended to play an active role in developing Central Asia’s mining sectors. “Interest in Kazakhstan from American investors is high, but for that interest to materialize in practice, infrastructure, energy capacity and skilled personnel are critical,” Rodgers added. While foreign interest is rising, industry representatives said Kazakhstan’s ability to convert that interest into long-term investment will depend on the consistency of its legal and regulatory framework. Nikolai Radostovets, executive director of the Republican Association of Mining and Metallurgical Enterprises, said amendments to Kazakhstan’s Subsoil Code, adopted in 2018, should now be aligned with changes in environmental, water and land legislation introduced in recent years. Ruslan Baimishev, president of the Kazakhstan Mining Chamber, also highlighted the importance of legislative stability, particularly in tax policy, saying investors require consistency in government decisions. World Bank Senior Mining Specialist Remy Pelon said many countries are reforming their mining sectors to meet growing demand for minerals needed for the global energy transition. At the same time, Pelon warned against overcorrection. “Governments must create conditions for the efficient use of mineral resources in the interests of national development, but it is equally important to preserve a balance between industrial policy, openness to new market players and competitiveness,” he said. “That balance is especially important for countries aiming not only to extract raw materials, but also to develop processing, local manufacturing and technological expertise.” Kazakh officials used the forum to underscore recent legal measures designed to improve investor protections. Arman Khassenov, deputy chairman of the Committee for the Protection of Investors’ Rights under the Prosecutor General’s Office,...

Pensions

A History of Kazakhstan Pension Reforms: Between Market and Monopoly

Kazakhstanis rushed to withdraw pension savings in May ahead of a sharp increase in the minimum balances required to access their funds, in what may prove to be the final major wave of early withdrawals from the country’s state-run pension system. According to local financial outlet Kapital.kz, the Unified Accumulative Pension Fund (UAPF) processed 119,100 applications for one-time pension withdrawals for housing in May, twice as many as in April. The withdrawals totaled 117.8 billion tenge, roughly $240 million. The surge came shortly before new “minimum sufficiency thresholds” were published in early June, which will make early access to pension savings difficult for most working-age contributors. The change has reopened a wider debate over Kazakhstan’s pension system, which has undergone several transformations over the past quarter century. From a bold market experiment in the late 1990s, to a rigid state monopoly, and now back to a tightly regulated market model, the system has long struggled to balance the protection of citizens’ retirement savings with the need to generate investment returns. How Kazakhstan Got Here: The Private Market Experiment, 1998-2013 Before 1998, Kazakhstan operated a solidarity pension system, under which the state paid pensions from current revenues without maintaining individual retirement accounts. Pension payments depended mainly on length of service and salary level. The economic crisis that followed independence forced the government to change course. On January 1, 1998, Kazakhstan became the first post-Soviet country to adopt a funded pension model inspired by Chile’s system. It created a multi-tiered framework based on mandatory individual contributions equal to 10% of income, alongside a state-funded basic pension. The idea was straightforward: private pension funds would act as institutional investors, channeling billions into the economy while generating sustainable returns for contributors. For a time, the model was seen as one of the most ambitious financial reforms in Central Asia. But over the following years, serious flaws became increasingly clear. Eventually, the government itself acknowledged that the experiment had failed. Regulators identified several core problems. The first was negative real returns. Pension funds consistently underperformed inflation. Average annual returns stood at only 2.2%, while inflation averaged 6.8%, meaning citizens’ savings steadily lost purchasing power. The second was toxic assets. In pursuit of higher yields, pension funds invested heavily in opaque corporate securities. Of the 38 major issuers financed with pension money, 32 later went bankrupt, resulting in substantial write-offs borne by contributors. The third was high management fees. Private fund managers charged substantial commissions even during periods of poor performance or losses. Later audits found that many of these fees had been used to finance inflated executive salaries and bonuses. By the summer of 2013, the government had begun dismantling the private pension model. From Private Funds to State Monopoly, 2013-2020 By autumn 2013, all pension accounts from private funds had been transferred to the UAPF, which came under the management of the National Bank of Kazakhstan. The state monopoly addressed one major issue: the preservation of capital. But it also created a new institutional...

Waste Management

Bishkek Launches Second Phase of Waste-to-Energy Plant

Bishkek has begun construction of the second phase of its waste-to-energy plant, a project city officials say will significantly expand waste processing capacity and add to the Kyrgyz capital’s energy supply. The groundbreaking ceremony took place on June 11. The facility, located at Bishkek’s main sanitary landfill, is the first waste-to-energy plant in Central Asia. Its first phase was officially inaugurated in December 2025 and was designed to process 1,000 tons of municipal solid waste per day. The plant was built by China’s Hunan Junxin Environmental Protection Co., Ltd., which invested $95 million in the project. The second phase will include a second production unit with capacity of up to 2,000 tons of waste per day and a 60-megawatt power generation complex. According to Bishkek’s city administration, once the second phase is completed, the facility will generate around 307 million kilowatt-hours of electricity annually, enough to supply roughly 100,000 homes. Officials say the project uses modern thermal waste processing technologies and a multi-stage emissions treatment system that complies with international environmental standards. The expansion is expected to improve waste management in Bishkek, reduce pressure on the city’s overburdened landfill, and improve environmental conditions in the capital. Construction of the second phase is expected to take three years. Once fully completed, the plant will be able to process up to 3,000 tons of municipal solid waste per day and generate up to 90 megawatts of electricity. The launch ceremony was attended by Kyrgyz Prime Minister Adylbek Kasymaliev, Bishkek Mayor Aibek Junushaliev, and Chinese Ambassador to Kyrgyzstan Liu Jiangping. Kasymaliev described the project as strategically important for Bishkek’s environmental future. “The start of the second phase continues a large-scale initiative aimed at radically improving the environmental situation in Bishkek and creating a green, clean and modern metropolis,” he said. Kasymaliev said the project would help solve Bishkek’s waste disposal problem while adding a source of green energy and improving air quality and public health. He also said the second phase is expected to reduce annual carbon dioxide emissions by approximately 312,000 tons. The project forms part of Kyrgyzstan’s efforts to modernize urban infrastructure and address environmental challenges as Bishkek’s population and waste volumes continue to rise.