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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.

Transport

Bishkek’s Tender to Convert Trolleybuses into Electric Buses Fails, Again

For the second time, a municipal tender in Bishkek aimed at converting trolleybuses into electric buses has ended in failure. According to the Kyrgyz public procurement portal, no bids were submitted for the project, which offered 4.5 million KGS (approximately USD 51,500) per unit. Following the unsuccessful tender, local media reported that city authorities approached an unnamed Chinese company directly to initiate a pilot conversion of one trolleybus. However, transport industry experts are skeptical, noting that retrofitting Belarusian models designed for overhead power may prove technically complex and economically unjustifiable. The initiative stems from a controversial municipal decision to transition trolleybuses to battery power rather than restoring the city’s overhead network, which was dismantled between 2023 and 2024 under the "Clean Sky" program. The plan has been heavily criticized by both residents and experts since its inception. Environmental group #BishkekSmog argued that the cost of converting the city's remaining 50 trolleybuses could exceed USD 2.5 million. “Why invest additional millions when the existing trolleybuses are already capable of operating on the overhead contact network?” the group stated. “Moreover, the name of the supposed contractor, a private Chinese company, has not been disclosed, raising concerns about transparency and the quality of any potential work.” Meanwhile, legal proceedings continue over the municipality’s decision to decommission the trolleybus network. The next hearing is scheduled for June 25 at the Bishkek Administrative Court. Activists and legal advocates argue that the dismantling violated international loan agreements and undermined the long-term sustainability of the city's public transport system. The Asian Development Bank has distanced itself from the city's current strategy, stating that it does not support the conversion initiative and had no involvement in the project.

Climate Change

Experts Warn of Escalating Climate Risks for Central Asia

As global temperatures rise, Central Asia is emerging as one of the world’s most vulnerable regions to the impacts of climate change. This warning comes from three recent reports by the World Meteorological Organization (WMO), which predict intensified warming, more frequent droughts, and rapid glacier retreat in the region. Without urgent adaptation and coordinated policy responses, the region faces growing risks to its water resources, agriculture, and energy systems. Beyond the Climate Norm According to the WMO’s Climate Outlook for 2025-2029, Central Asia is projected to experience sustained warming and greater variability in precipitation. Every year in the 2025-2029 period is expected to be hotter than the 1991-2020 average. Particularly troubling is the growing likelihood that global temperatures may temporarily exceed +1.5°C above pre-industrial levels in the near term. One contributing factor is the heightened intensity of the South Asian monsoon, which is 82% more likely to be stronger than normal. While this could increase rainfall, the unpredictability raises concerns, periods of heavy rain could be followed by prolonged droughts, severely impacting regional agriculture. Another alarming development is the rapid retreat of glaciers in the Pamirs, which feed the region’s primary waterways, including the Amu Darya and its major tributary, the Vakhsh. The loss of these glaciers threatens long-term water availability and necessitates a rethinking of regional water management strategies. The WMO forecasts that the 2025-2029 period could be the warmest on record, with global temperatures projected to rise by 1.2-1.9°C. Although the chance of exceeding +2°C during this period is currently low, about 1%, the probability is rising. Spring Floods, Summer Droughts A second WMO report, though focused on the Pacific region, reinforces global climate trends relevant to Central Asia. It confirms that 2024 was the hottest year on record, with global average temperatures 1.55°C above pre-industrial levels. For high-altitude countries like Tajikistan, the implications are already evident. Snow is melting earlier, shortening the runoff season. Water that once lasted through summer now disappears within weeks in the spring, heightening the risks of spring flooding followed by summer droughts. The region lacks sufficient reservoir infrastructure to capture and store water during periods of excess. The report also highlights the looming disappearance of Indonesia’s glaciers by 2026, a fate that may soon await Central Asia’s glaciers. The consequences are serious, particularly for countries like Tajikistan, where over 90% of electricity is generated by hydropower. Climate anomalies across the region are increasing, including dust storms, intense rainfall, extreme heat, and landslides. The WMO stresses the urgent need for adaptation measures such as modernized infrastructure and improved climate monitoring and water management systems. The Need for a Regional Strategy The third WMO report emphasizes Central Asia’s unique vulnerability to droughts, which often cross national borders. This underscores the need for a coordinated regional approach, especially in the Amu Darya and Syr Darya river basins. The report advocates for transboundary mechanisms for monitoring, data sharing, and joint response strategies. While Central Asia is part of the Global Network of Climate-Resilient River Basins, progress...

Climate Change

Central Asian Glaciers Shrinking Irreversibly, Expert Warns

Glaciers in Central Asia are melting at an alarming rate with no signs of recovery, according to Tohir Majitov, head of the Uzbek public organization "Suvchi," in an interview with Kazinform. Majitov highlighted the escalating pressure on water supplies due to population growth and agricultural expansion across the region. "In 1991, Central Asia had nearly 6 million hectares of irrigated land. By 2024, this figure has grown to over 10 million hectares. The population has also increased from around 45 million to more than 80 million. Water supply for this growing population is now a serious issue," he explained. He noted that Uzbekistan and Kazakhstan heavily depend on the Syr Darya and Amu Darya rivers, which originate in the mountainous regions of Kyrgyzstan and Tajikistan. A critical challenge arises from the differing water needs: upstream countries store water during summer for hydropower generation in autumn and winter, while downstream nations like Kazakhstan and Uzbekistan require substantial water primarily during the summer growing season. Majitov issued a stark warning about the region's largest glacier, Tajikistan's Fedchenko Glacier, which has reportedly lost over 40% of its mass. "Between 1990 and 2005, the glacier shrank by 50 meters," he stated. "Its length is 77 kilometers, width 2.4 kilometers, and depth reaches one kilometer. Glaciers in Kyrgyzstan have also lost over 30% of their mass." To tackle these pressing water challenges, Majitov proposed the formation of a regional body. "We suggest creating an Aral Sea Committee to improve water management and ensure food security. It may take several years, but all Central Asian countries should take part," he urged. He believes that efficient water use could enable the region to expand irrigated land by 2-3 million hectares, potentially feeding up to 100 million people. Previously, The Times of Central Asia reported concerns from other experts on the region's water crisis. A fundamental conflict exists between upstream countries, like Kyrgyzstan and Tajikistan, which have water but need to release it in winter for electricity generation, and downstream countries, such as Uzbekistan and Turkmenistan, that require that water in summer for agricultural purposes. What was once primarily a technical concern has now evolved into a complex regional problem, exacerbated by climate change. Nations are increasingly constructing dams, engaging in disputes over water allocation, and experiencing a decline in mutual trust. The future stability of Central Asia may hinge on its capacity to effectively manage this escalating water crisis.

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...

Water Resources

Kyrgyzstan Offers Support to Tajikistan with Innovative Water-Saving Technology

Kyrgyzstan is offering a novel solution to Tajikistan’s mounting water scarcity and pasture degradation: the construction of artificial glaciers, or so-called “ice towers.” These structures store water during the winter and release it during the arid summer months, providing a lifeline for communities affected by climate change. Innovation Amid a Warming Climate The initiative was highlighted during the session “Activating Global Action to Enhance Glacier Resilience: Civil Society Experiences in Central Asia,” held as part of the recent International Conference on Glacier Conservation in Dushanbe. According to Anar Alymkulova, executive director of Kyrgyzstan’s Institute for Sustainable Development, artificial glaciers have proven effective in mitigating the effects of climate change and addressing water shortages. Since the first ice tower was constructed in 2022 in Jalal-Abad, the initiative has expanded significantly. Two more towers were added in 2023, and in 2024, seven were built in Batken region, collectively storing over 1.5 million cubic meters of ice during the winter. By the end of this year, four additional towers are planned in the Batken and Leylek districts. In total, approximately 30 such structures now operate across Kyrgyzstan. How Ice Towers Work The technology is simple yet effective. Water from springs is channeled via an underground pipeline, spanning several kilometers, to a vertical pipe up to 20 meters tall. During winter, water is sprayed from the pipe and freezes, forming an ice tower 30 to 50 meters high. In the spring and summer, the ice melts gradually, supplying water for people and livestock. Oleg Guchgeldiev, Kyrgyzstan's representative in the UN's Food and Agriculture Organization (FAO), noted that each ice tower costs between $3,000 and $4,000 and can store up to 50,000 cubic meters of water. This method offers a practical solution in remote, arid regions where traditional water sources have become unreliable. A Critical Issue for Tajikistan Sustainable water management is a growing concern in Tajikistan, where more than 1,000 glaciers have disappeared in the last 23 years. The country has lost about 20% of its glacier volume and 30% of its glacier area over the past five to six decades. According to UNEP projections, Central Asia could lose over half its glaciers by 2050, jeopardizing water security for more than 64 million people, particularly in rural and mountainous areas. In response, the Tajikistan's President Emomali Rahmon spearheaded a successful campaign at the UN General Assembly to declare 2025 the International Year of Glacier Conservation. The initiative culminated in a major conference from May 29 to 31 in Dushanbe, attracting over 2,500 delegates from 80 countries and numerous international organizations. A Scalable Regional Solution The Kyrgyz model of artificial glaciers presents a scalable solution for Tajikistan and potentially the broader Central Asian region. As glacier retreat accelerates and drought risks rise, such technologies could play a key role in national climate adaptation strategies. “Artificial glaciers are not only a way to store water, but also a tool for adapting to a changing climate,” experts at the Dushanbe conference emphasized. “They demonstrate how local communities...