Kyrgyzstan Business & Economy - The Times Of Central Asia

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Gold Mining

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.

Growth Forecasts

IMF Forecasts Slower Growth for Kyrgyzstan, While Authorities Project Higher Rates

The International Monetary Fund (IMF) expects Kyrgyzstan's economic growth to slow to 6.8% in 2025, even after strong performance in the first half of the year. In its latest report, the IMF projects medium-term growth to stabilize at 5.2%. By contrast, Kyrgyz authorities remain bullish, forecasting GDP growth of 8.5-9% by year-end. According to the National Statistical Committee, Kyrgyzstan's GDP expanded by more than 12% between January and May 2025, with preliminary figures placing the economy’s value at 573 billion KGS (approximately $6.5 billion). Reflecting this momentum, the National Bank of Kyrgyzstan recently revised its growth forecast upward from 8% to 9%. The central bank attributed this adjustment to accelerated investment activity, rising household incomes, and stronger domestic demand. Growth is being driven by key sectors such as manufacturing, trade, and construction, bolstered by proactive fiscal measures and robust business activity. Diverging Forecasts and Economic Narratives While acknowledging the resilience of Kyrgyzstan’s economy amid global volatility, the IMF maintains a more cautious outlook. Its report highlights a decline in inflation to single-digit levels and improvements in public debt management, both of which create fiscal space for critical investments in infrastructure, energy, and human capital. “In the medium term, growth is expected to approach its potential of 5.2% as re-export trade normalizes. However, the economic outlook remains sensitive to geopolitical risks. Strengthening fiscal buffers and implementing structural reforms remain priorities for the country,” the IMF noted in a statement. This divergence in outlook is not new. In 2023, then Prime Minister Akylbek Japarov famously wagered with World Bank Chief Economist Hugh Riddell that GDP growth would exceed 7%. Japarov ultimately won the bet, as the actual performance validated his projection, despite widespread skepticism. Experts Weigh In Economist Nurgul Akimova attributes the differing forecasts to contrasting methodologies. “International organizations use standardized models that consider macroeconomic indicators, institutional stability, and vulnerability to external shocks,” she explained. “Kyrgyz authorities, by contrast, often base their projections on optimistic assumptions about investment inflows, export expansion, and remittances.” Akimova also highlighted the political motivations behind domestic forecasts. “Official estimates serve to project confidence, both to the public and to investors. However, overly optimistic projections can obscure risks and complicate fiscal planning.” “In the short term, the government can often meet its targets by mobilizing domestic resources. But in the long run, IMF forecasts tend to be more accurate as they account for both internal and external vulnerabilities,” she concluded.

Digitalization

The Next Steps for Central Asian Finance: Interview with Azerbaijani Fintech Leader Dr. Fuad Karimov

This week The Times of Central Asia will be attending the CAMCA Regional Forum, which this year is being held in Ulaanbaatar, Mongolia. The CAMCA network is a collection of professionals and policymakers dedicated to sharing ideas, knowledge and inspiration to accelerate the development of the Eurasia region; its name stands for Central Asia, Mongolia, the Caucasus and Afghanistan. Ahead of the Forum, The Times of Central Asia spoke with Dr. Fuad Karimov, Regional Managing Director of the payment software company Xsolla, about what the CAMCA program means for the Eurasian finance industry, and how Azerbaijan can work more closely with Central Asia. TCA: What condition do you feel fintech spaces are currently in, particularly in the Eurasia region? FK: Fintech [financial technology] across the CAMCA region is accelerating. Countries like Kazakhstan and Uzbekistan have made significant progress in regulation and adoption. In Azerbaijan, key drivers include state-led digitalization and innovative companies like PashaPay and Birbank, which are transforming consumer payment behavior. Cross-border transfers, mobile banking, and contactless solutions are increasingly common across the region. In what areas do you think CAMCA initiatives can help them improve? CAMCA can create platforms to harmonize financial regulations, facilitate cross-border fintech testing, and promote knowledge exchange. It can also help reduce friction in currency conversion. Regional collaboration can attract investors from the West and Asia. Priorities should include cybersecurity, financial literacy, AI in finance, and coordinated exploration of digital currency pilots like e-Manat, e-Tenge, and e-Soum. You're moderating a session on harnessing fintech in CAMCA markets. What topics do you expect to touch upon, and who are you looking forward to hearing from? We’ll cover the rise of digital national currencies (CBDCs), crypto regulation, exchange rate risk, and the impact of AI on lending, compliance, and fraud prevention. I’m especially looking forward to hearing from fintech leaders in the CAMCA region — each representing diverse policy environments and innovation models. Where do you see opportunities for Central Asia to work more closely with Azerbaijan? There’s strong potential in co-developing cross-border payment systems, digital identity frameworks, and startup accelerators. Azerbaijan can share experience in building public-private fintech partnerships, while Central Asia offers scale and growing demand. Aligning exchange rate mechanisms, regulatory approaches, and education systems will enhance regional integration. The CAMCA platform is an ideal space to turn these synergies into actionable policy and investment opportunities.

Construction Materials

With Major Plant Modernization, Kyrgyzstan Seeks To End Construction Woes

Kyrgyzstan’s construction sector received a significant boost on June 16 with the launch of a new production line at the Kant cement plant, the country’s largest cement producer. Located in the city of Kant, about 20 kilometers east of Bishkek, the plant has been in operation since 1964 and remains a cornerstone of the national construction materials industry. Its modernization was carried out in partnership with China’s Beijing Triumph Engineering and the Eurasian Development Bank, with total investments exceeding $60 million. In 2024, the plant produced 1.156 million tons of cement. The new production line is expected to add 800,000 tons of clinker capacity annually, enhancing the plant’s output and improving cement quality to better meet domestic demand. At the launch ceremony, President Sadyr Japarov emphasized the rapid growth of Kyrgyzstan’s construction sector, citing a surge in infrastructure development across the country. “In just the first three months of 2025, 3,300 residential buildings totaling 419,000 square meters were commissioned, 32.2% more than during the same period last year,” Japarov stated. Despite this expansion, Kyrgyzstan has recently faced a cement shortage due to soaring demand driven by the construction of homes, schools, roads, and social infrastructure. The surge has also led to price hikes, prompting government action. The Times of Central Asia previously reported that the Ministry of Economy and Commerce has proposed designating cement as a “socially significant good,” a status that allows the state to regulate the prices of essential materials. The ministry argued that unchecked pricing has inflated housing costs and impeded the timely completion of social projects. The modernization of the Kant cement plant is expected to help ease these pressures by increasing supply, stabilizing prices, and supporting Kyrgyzstan’s continued infrastructure development.

Sewage System

Cholpon-Ata Launches First-Ever Centralized Sewage System Project

In a significant move toward sustainable tourism and environmental protection, Kyrgyz Minister of Construction Nurdan Oruntaev signed an agreement with firms from China, Turkey, and Uzbekistan to build treatment facilities, pump stations, and sewer collectors in Cholpon-Ata, a city on the northern shore of Lake Issyk-Kul. The project is being financed by the Asian Development Bank as part of the national “Environmental Management of Issyk-Kul” program. It aims to improve ecological conditions and support sustainable tourism development by establishing a unified sewage system for Cholpon-Ata and nearby settlements, including Bosteri, Kara-Oi, and Baktuu-Dolonotu. “The project aims to ensure balanced economic development with a focus on innovation and environmentally friendly technologies. Its key objective is to preserve the unique ecosystem of the lake,” the Ministry of Construction stated. Environmental Measures Ahead of Tourist Season Ahead of the 2025 tourist season, the Environmental and Technical Supervision Service has announced that resorts without sewage treatment facilities will be barred from operating during the summer months. “With the start of the season, the load on the lake's ecosystem increases dramatically, all sanatoriums and holiday homes begin operating, and the number of tourists surges. Issyk-Kul is a closed ecosystem and designated biosphere reserve that requires special protection. According to a presidential decree, facilities in the recreational zone without treatment infrastructure are prohibited from operating,” explained Kych Tentimishov, head of the regional department for environmental and technical supervision at the Ministry of Natural Resources. Current Sanitation Status According to ministry data, there are currently 1,127 accommodation facilities operating around Lake Issyk-Kul, including resorts, sanatoriums, and holiday homes. Of these, only 185 have their own sewage treatment systems, and another 208 are connected to a centralized system. The remaining facilities rely on septic tanks. Authorities are currently conducting inspections to ensure all facilities meet environmental standards, as part of a broader initiative to safeguard one of Kyrgyzstan’s most treasured natural landmarks.

Immigration

The Kyrgyz AI Startup Making U.S. Immigration Simpler

These days, public debate is dominated by the issues of immigration and AI. But until the emergence of the new startup Alma, they had existed as entirely separate discussions. Alma's co-founder Aizada Marat, raised in Kyrgyzstan, has been one of the first to ask: can AI be used to simplify immigration? Marat first came to the U.S. as a FLEX (Future Leaders Exchange) student when she was 17, before graduating from Harvard Law School in 2015. It was then that her own immigration problems began. Due to visa issues, Marat had to move to London, before coming back to America three years later. “Since relocating to the Bay Area in 2018 [for family reasons] the seed of becoming a founder was planted in my head.” Marat has said on her social media. “When I moved back to the U.S., that's when the immigration nightmare began. As I would with any other service provider, I used Google to find lawyers who could help me with my immigration process. I found a firm. I hired them. I was given the wrong advice. That advice led me to almost miss out on a job offer that, thankfully, I later secured. I also couldn't travel and see my family during that time. With that frustration in mind, I realized I had to start a company to solve the problem professionals were facing.” [caption id="attachment_32658" align="aligncenter" width="2048"] Image: Aizada Marat/Alma[/caption] Before Marat could become an entrepreneur, she needed to learn more about business. This is how she ended up at McKinsey, one of the leading global consulting firms. Soon after, Alma was born. Alma is a legal-tech startup, which uses AI to simplify the immigration process. The company was founded in October 2023 by Marat and Assel Tuleubayeva, a former product manager at Step. A month later the startup secured $500,000 of investments from Village Global, John Hale, and other angel investors. In March 2024 Marat and Tuleubayeva found Shuo Chen, who was previously a manager with Uber. In July 2024 Alma raised $5.1 million in combined seed and pre-seed rounds from leading venture capital funds..Last month it was selected for Google Cloud’s AI Accelerator. Alma was founded as a company offering solutions for law firms, but in 2024 it took the decision to help professionals directly, without any intermediaries. Marat, Tuleubayeva and Chen are immigrants themselves, who combined have had to apply for around 15 separate visas to allow them to work in the U.S. This month Alma reached over 300 clients, including both B2C and B2B. “I'm an immigrant who went through the immigration maze myself, so this is deeply personal", Marat tells The Times of Central Asia. "With my legal and business background, starting Alma made perfect sense. Immigrants drive the U.S. economy, and to stay competitive in the AI race, we need to help the best talent achieve their American dream." She adds: “Alma disrupts the immigration in the US and forever streamlines it for the better. Small and big companies...