Kyrgyzstan Business & Economy - The Times Of Central Asia

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Import Duties

Kyrgyzstan Urges EAEU to Remove Import Duties on Key Goods

Kyrgyzstan has appealed to its partners in the Eurasian Economic Union (EAEU) to eliminate import duties on a range of socially significant goods, arguing that the measure would help ease the impact of global inflation and slow domestic price growth, according to an official government statement. The proposal was presented during a meeting of the Eurasian Economic Commission (EEC) held in Moscow on March 13. Kyrgyz officials stressed that the country’s economic conditions differ markedly from those of the bloc’s larger member states, making more flexible trade mechanisms necessary. The initiative covers goods considered critical for food security, including flour, vegetable oil, fruits and vegetables, as well as cocoa powder used in the confectionery industry. Authorities in Bishkek believe that removing import duties on these items would lower procurement costs and reduce the transmission of global price increases to the domestic market. “We are seeing rising inflation worldwide, including for the goods we import, particularly agricultural products. In effect, when we import goods at higher prices, we are also importing inflation. Eliminating duties will help reduce the cost of these products,” said Elimbek Kanybek uulu, head of the EAEU Coordination Department, at a press conference in Bishkek. The full list of goods eligible for preferential treatment, along with import volume thresholds, is expected to be published within a month after the EEC formally approves the decision. According to Kanybek uulu, Kyrgyzstan has previously sought similar temporary measures for meat imports. At that time, the suspension of duties contributed to a reduction of around 10% in the price of imported meat. Food security remains a major policy priority. President Sadyr Japarov has said that Kyrgyzstan is currently self-sufficient in six of the nine staple food items included in the national food basket. The government plans to gradually expand domestic production of the remaining products, including flour, vegetable oil, and certain types of fruit. Analysts say future food price dynamics in Kyrgyzstan will depend on both global commodity trends and decisions within the EAEU regarding trade preferences and tariff policy.

Agriculture

Livestock Numbers Are Growing in Kyrgyzstan as Authorities Expand Pasturelands

Spring fieldwork has begun in Kyrgyzstan, including the sowing of wheat and barley and efforts to expand the forage base for livestock farming. The Ministry of Water Resources, Agriculture, and Processing Industry has also started planting pastures with forage crops. Myktybek Kalandarov, head of the Department of Breeding Livestock Production, confirmed the work in an interview on state radio. Kalandarov said that approximately 15,000 hectares of pastureland have already been sown with forage crops this year. A further 10,000 hectares of high-altitude pastures were planted in the autumn. Authorities plan to continue expanding pasture resources, with another 10,000 hectares scheduled for planting in the coming months. About $570,000 has been allocated in 2026 to support these measures. Kalandarov added that revenue generated from pasture use should be reinvested in their restoration and development. “Revenue comes from payments for pasture use, about $0.23 per sheep or goat grazed and approximately $1.15 per cow,” he said. The increase in pasture investment is linked to rising livestock numbers. According to data from the National Statistical Committee, the country’s total livestock population has grown by 6.6% over the past five years. As of the end of 2025, farms across all categories had approximately 1.8 million cattle, a 1.7% increase compared with the previous year. The number of sheep and goats reached 6.3 million, up 0.8%. Positive trends have also been recorded in horse breeding, poultry farming, pig farming, and yak breeding. Agricultural sector representatives say growing demand for animal feed is influencing crop patterns. Zakir Koombayev, director of a farm in the Chui Region, told The Times of Central Asia that farmers are increasingly diversifying their forage crops. “Previously, we mainly planted spring crops such as wheat and barley. Now, given the growth in livestock numbers, we have ordered feed corn seeds from southern Russia,” he said. Experts note that the future development of livestock farming in Kyrgyzstan will largely depend on effective pasture management and the sustainability of the country’s feed base.

Agriculture

Kyrgyzstan Moves to Expand Organic Farming but Certification Barriers Limit Exports

Kyrgyzstan is stepping up efforts to expand organic agriculture, but limited access to international certification continues to pose a major obstacle to export growth. The country currently has nine agricultural cooperatives and 30 organic farmland plots covering about 61,500 hectares. Certified organic land accounts for just over 5% of total arable land. Cooperatives operating under international standards produce crops such as cotton, herbs, apricots, and grains for export to more than 30 countries. Smaller farms, however, often rely on the Participatory Guarantee System (PGS), a low-cost, community-based certification model mainly used for domestic markets. Despite strong potential for high-value organic products, including berries and vegetables, obtaining international certification remains costly and administratively complex for small producers. To address these challenges, the government adopted a development programme for 2025-2029. The strategy aims to expand organic farmland to 200,000 hectares, transition the Issyk-Kul and Naryn regions toward predominantly organic production, and increase the share of organic products to 25% of both total agricultural output and exports. Officials view organic farming as an important tool for sustainable rural development. However, further expansion of the sector will depend largely on improving access to internationally recognized certification systems.

Agriculture

Spring Sowing Begins in Kyrgyzstan as Officials Stress Food Security

Spring sowing has begun in Kyrgyzstan, where agricultural crops are expected to be planted on a total of 1.25 million hectares in 2026, according to the Ministry of Water Resources, Agriculture, and Processing Industry. Of this area, about 818,000 hectares are irrigated land and 432,000 hectares are rainfed. As of March 12, sowing was underway in the southern regions of Osh, Jalal-Abad, and Batken, as well as in the Chui Valley. Fieldwork has not yet started in the colder regions of Talas, Issyk-Kul, and Naryn. Farmers have so far planted grain crops, including wheat and barley, along with potatoes and various vegetables. The ministry has recommended that farmers prioritize crops considered important for national food security. Turatbek Idrisov, head of the ministry’s Department of Plant Growing, Horticulture, and Cooperatives, said producers should focus on socially significant crops such as wheat, barley, potatoes, onions, and sugar beet. He noted that grain crops and sugar beet are included in the country’s list of strategic food reserves. According to ministry monitoring data, the expansion of livestock farming in recent years has led to increased cultivation of fodder crops, particularly barley and maize. Officials also noted that crops such as maize, raspberries, and strawberries have demonstrated relatively high profitability for farmers. The ministry is encouraging producers to adopt water-saving irrigation technologies, including drip and sprinkler systems. Farmers who implement such methods are eligible for state-supported concessional loans with reduced interest rates. Authorities say Kyrgyzstan is currently fully self-sufficient in six of nine socially significant food products, potatoes, milk, meat, vegetables, eggs, and sugar. However, the country remains partially dependent on imports of three key staples: bread products (including flour and grain), vegetable oil, and fruit.

Afghanistan

From Electricity to Fuel, Central Asia is Doing More Business with Afghanistan

Central Asia is becoming even more important to Afghanistan. After the Taliban returned to power in August 2021, most of the countries of Central Asia established a dialogue with its leadership that focused on business potential, backed up by security promises. This understanding is more important than ever to the Taliban government, as events along Afghanistan’s eastern and western borders have left Central Asia as the only reliable import-export route for Afghanistan at the moment. Booming Trade At the start of March, Afghanistan’s Ministry of Industry and Commerce released figures for 2025 that showed trade with Central Asia increased from $1.79 billion in 2024 to $2.4 billion in 2025. While most of the trade is exports from Central Asia to Afghanistan, reports mentioned that Afghan exports to Central Asia -- mostly to Kazakhstan and Uzbekistan -- increased by 77 percent, from $122 million in 2024 to $216 million in 2025. A closer look shows that Uzbekistan-Afghanistan trade in 2025 totaled some $1.6 billion. A full figure for Kazakh-Afghan trade in 2025 is not yet available. However, trade between Kazakhstan and Afghanistan amounted to some $525.2 million in 2024. Kazakhstan's Deputy Prime Minister Serik Zhamangarin said at a Kazakh-Afghan business forum in Kazakhstan’s southern city of Shymkent in October 2025 that bilateral trade in the first eight months of 2025 had reached some $335.9 million. These figures are certain to have grown. Fresh agreements worth more than $360 million were signed on the sidelines of the Kazakh-Afghan business forum. On March 6, Uzbekistan’s President Shavkat Mirziyoyev signed a decree ratifying the Preferential Trade Agreement between Uzbekistan and Afghanistan. Trade totals for Kyrgyzstan, Turkmenistan, and Tajikistan with Afghanistan are more modest, but, as in the cases of Kazakhstan and Uzbekistan, are set to grow. Kyrgyz-Afghan trade for the 12 months to March 2025 came to some $66 million, but, during a Kyrgyz-Afghan business conference in Kabul commercial contracts worth some $157 million were signed. There are no figures for Turkmen-Afghan trade in 2025, but Turkmen electricity exports to Afghanistan are increasing. Turkmenistan is also preparing to export natural gas to Afghanistan. A natural gas pipeline is slowly being constructed from the Turkmen border to the western Afghan city of Herat, which could start operation as soon as 2027. Tajikistan was the lone Central Asian country to shun contact with the Taliban after they returned to power. Representatives of the previous government of Ashraf Ghani continue to occupy the Afghan embassy in Dushanbe. Tajik and Taliban authorities finally established contacts only in late 2024 but even to this day the two sides rarely meet face-to-face. However, Tajik-Afghan trade in 2025 still totaled some $120 million. Afghanistan’s Ministry of Industry and Commerce noted that most of Central Asia’s exports to Afghanistan are electricity, fuel products, and natural gas. Uzbekistan, Tajikistan, and Turkmenistan export electricity to Afghanistan via transmission lines that were built during the 20 years the Taliban were out of power. Some 80 percent of Afghanistan’s electricity is imported, and most of that (75-80 percent) comes...

Electricity

Kyrgyzstan Plans Gradual Electricity Tariff Increases to Address Energy Sector Deficit

Kyrgyzstan will raise household electricity tariffs starting May 1, as part of a broader reform program aimed at reducing subsidies and bringing tariffs closer to the actual cost of power generation. Under the new policy, the household tariff will increase by approximately $0.003 per kilowatt-hour, reaching $0.018 per kWh. According to the Ministry of Energy, tariffs are expected to continue rising each May until at least 2030, when they are projected to fully cover production costs. The government has outlined a tentative schedule for further increases: 2027: rise of about $0.004 per kWh 2028: rise of about $0.0045 per kWh 2029: rise of about $0.005 per kWh 2030: rise of about $0.0065 per kWh Even after the planned increase in 2026, households will cover only around 45% of the real cost of electricity, Timur Orozaliev, Director of the Department for Regulation of the Fuel and Energy Complex, told the Kabar state news agency. He said the cost of electricity production in 2026 is estimated at approximately $0.034 per kWh, meaning the new tariff will pay for less than half of actual generation costs. Electricity tariffs for industrial enterprises, financial institutions, restaurants, and government agencies are already two to three times higher than those for households. Despite the planned increases, electricity prices in Kyrgyzstan remain among the lowest in Central Asia. Electricity demand continues to grow. In 2025, national consumption reached 19.3 billion kWh, an increase of 900 million kWh compared with the previous year. Of this total, 15.4 billion kWh was generated domestically, while 3.9 billion kWh was imported from Turkmenistan, Uzbekistan, Kazakhstan, and Russia. Kyrgyzstan regularly experiences seasonal power shortages, particularly during winter, when many households rely on electricity for heating. To address the deficit, the government is working to build new hydropower plants and modernise existing facilities as part of a broader strategy to stabilise the national energy system and reduce dependence on electricity imports.