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Tajik Entrepreneurs Return to Kyrgyz Markets

Following the reopening of the Kyrgyz-Tajik border, Tajik entrepreneurs have resumed visits to markets in Batken Oblast, Kyrgyzstan. Local media report that residents are welcoming the return of their southern neighbors. Once a week, the market in Ak-Turpak village becomes a hub of activity, drawing sellers and buyers from across the region and neighboring countries. A major draw is Batken rice, which resellers purchase in bulk for export to Uzbekistan and Russia. According to local vendors, the market can sell up to 200 tons of rice on a busy day. Rice is cultivated across 3,000 hectares in this border region and remains a vital source of income for many farmers. With the border now open and economic ties restored, buyers from Isfara, Tajikistan, have begun frequenting the Ak-Turpak market, offering a welcome boost to Kyrgyz vendors. As previously reported by The Times of Central Asia, residents of Batken’s border districts also benefit from cross-border trade, often finding it more economical to purchase certain fruits and vegetables in Tajikistan than in Kyrgyzstan’s oblast centers. On March 13, 2025, following the signing of bilateral agreements, the Kairagach and Kyzyl-Bel border checkpoints in Batken Oblast officially reopened. According to Kyrgyzstan’s Border Guard Service, approximately 5,000 people crossed the Kyrgyz-Tajik border between March 13 and 17. An additional 500 individuals crossed by air. Prior to the agreement, all crossings had remained closed since 2021.

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EBRD and ADB Finance Upgrade of Key Road in Tajikistan

The European Bank for Reconstruction and Development (EBRD) has announced a loan to finance the upgrade and expansion of the Dangara-Guliston road in Tajikistan. Built in the 1930s as part of a major international highway, this road serves as a crucial link between the north and south of the Khatlon region, an area that produces more than 53% of Tajikistan’s agricultural output and is home to 35% of the country’s population. Financing and Project Scope The EBRD’s sovereign loan of up to €38 million will help finance improvements to a 49-kilometer section of the road, including the construction of charging infrastructure for electric vehicles. The Asian Development Bank (ADB) will provide $86.7 million (€83.5 million) in grant financing to support the project. The upgrades will convert the existing single-lane road into a dual-lane highway, significantly improving transportation efficiency and reducing cargo delivery times across the Khatlon region and beyond. Additionally, the upgraded road will feature: Improved lighting Cycle paths Pavements for pedestrians Electric Mobility and Sustainability This will be one of the first roads in Tajikistan equipped with charging stations for electric vehicles (EVs), encouraging wider EV adoption in the country. The EBRD will also provide a technical cooperation grant to develop a national electric mobility action plan, aimed at stimulating public and private investment in sustainable transportation infrastructure across Tajikistan. EBRD's Broader Investment in Tajikistan To date, the EBRD has invested over €1 billion in Tajikistan through 183 projects, supporting key sectors such as infrastructure, energy, and private enterprise development.

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Central Asia’s AI Pursuit: A Tale of Ambition and Progress

The term “rare earth metals” has become a buzzword in the modern geo-economic lexicon, popularized by U.S. President Donald Trump in contexts where American investments are expected. However, before that, “artificial intelligence” (AI) had already emerged as a global symbol of technological advancement and economic competitiveness. At least four of the five Central Asian republics have joined the race to implement AI technologies, though, until recently, two of them lacked the necessary prerequisites for such a leap. Kazakhstan Sets the Pace A key factor for the successful adoption of AI is the level of digitalization, an area in which Kazakhstan has made significant progress. The country’s digital transformation began with the banking sector and later expanded to public services, with nearly 100% of government services now available online. The COVID-19 pandemic accelerated this shift, making digital access to state institutions and banks a necessity. Since 2022, when AI became synonymous with technological leadership, exemplified by developments in China and the U.S., Kazakh President Kassym-Jomart Tokayev has actively promoted AI initiatives. In the summer of 2023, the government adopted the Concept for the Development of Artificial Intelligence for 2024-2029. During discussions on this initiative, officials reviewed measures already in place, such as Smart Data Ukimet, a centralized system integrating data from 93 government databases. Plans include deploying a supercomputer, expanding data processing centers, launching a national AI platform, and enhancing fiber-optic networks. Additionally, the Ministry of Science and Higher Education is working on a large language model (LLM) focused on the Kazakh language and cultural heritage. Prime Minister Olzhas Bektenov has set a clear goal: “By 2029, the number of AI-based products should increase fivefold. The share of educational programs related to AI must also expand. We need qualified specialists in this field, and it is crucial to consider the needs of domestic companies, which will have a multiplier effect on the economy.” Bektenov also emphasized the role of the National Center for AI in fostering youth involvement, developing human capital, and promoting AI culture. Furthermore, he instructed the Ministry of Justice to enhance legal frameworks for AI regulation. In December 2024, President Tokayev presented Kazakhstan’s first Kazakh language AI model, KazLLM, expressing satisfaction with its development: “We have taught artificial intelligence to think, analyze, and communicate in Kazakh. This achievement opens new prospects for our language in the digital sphere. We must build a Multimodal Language Model, capable of processing various data types simultaneously.” On March 3, 2025, Kazakhstan’s Mazhilis (lower house of parliament) reviewed a draft law, On Artificial Intelligence. If passed, it will be the world’s second AI law after the European AI Act. Uzbekistan's Ambitious Strategy Uzbekistan, another Central Asian country vying for AI leadership, has similarly prioritized digitalization. However, it lags slightly behind Kazakhstan in implementation speed. On October 14, 2024, Uzbekistan adopted its Strategy for the Development of Artificial Intelligence Technologies Until 2030, which outlines several ambitious targets: Increasing AI-driven software and services to $1.5 billion Expanding AI-powered government services on the Single Portal of...

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ADB Considers $500 Million Support for Tajikistan’s Rogun Hydropower Plant

The Asian Development Bank (ADB) will continue supporting Tajikistan’s Rogun Hydropower Plant (HPP) project in 2025, the bank’s new country manager, Ko Sakamoto, announced on February 25. Speaking to reporters, Sakamoto emphasized that Rogun HPP is a top priority for the Tajik government, highlighting its significance for Tajikistan’s energy independence, regional stability and climate change mitigation. The ADB has been invited to join a consortium of financial institutions financing the project. Tajikistan has requested $500 million in assistance, and the bank is currently reviewing the proposal. “ADB will continue to support the project and share updates as negotiations progress,” Sakamoto said. In 2024, ADB provided $220 million in assistance to Tajikistan, funding six projects across agriculture, energy, health, public administration and transport. ADB plans to approve four new projects in 2025, including an initiative on digital agriculture aimed at boosting food security. The bank is developing a five-year strategy that will align with Tajikistan’s long-term development goals. It will support glacier protection efforts, as Tajikistan leads regional climate initiatives. An international glacier conservation conference is scheduled for May in Dushanbe. As Tajikistan works toward greater energy security, Rogun remains central to its economic and environmental strategy. ADB’s continued involvement signals strong international backing for the project, which has the potential to transform Tajikistan into a key regional energy exporter. If approved, the $500 million in funding would mark a significant step toward completing one of Central Asia’s most ambitious hydropower projects.

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Chinese Company to Help Build Central Asia’s Longest Bridge in Tajikistan

Tajikistan is set to begin construction on the longest highway bridge in Central Asia, a key component of the third phase of the Obigarm-Nurabad highway project. The implementation agreement was signed between Tajikistan’s Ministry of Transport and the Tajik branch of the Chinese company Zhejiang Communications Construction Group Co. Ltd. (CCCC). The document was signed by Tajik Minister of Transport Azim Ibrohim and CCCC representative Li Mingkun. The bridge, spanning 920 meters (1,500 meters including access roads), will cross the Surkhob River in Nurabad district, making it the largest infrastructure project of its kind in the region. “The construction of the bridge should be completed with high quality and within the stipulated time frame, but we hope the work can be finished even earlier,” Ibrohim said. The project, estimated at CNY 427.5 million (approximately $59.8 million), is scheduled for completion within four years, with both local and international experts involved. Design and feasibility studies were prepared by South Korean firms Dong Maeng Engineering Company, Seng Engineering Company, and Susang Engineering Company, in collaboration with the Institute of Transport Facilities Design under Tajikistan’s Ministry of Transport. Li Mingkun emphasized that CCCC has prior experience in Tajikistan, having participated in the construction of roads and bridges. This project aligns with the country’s strategy to overcome transport isolation and establish itself as a key regional transit hub.

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Central Asia Receives Half of Eurasian Investments from China, Turkey, Iran, and Gulf States

The Eurasian Development Bank (EDB) has released a new study analyzing mutual direct investment (MDI) flows across the Eurasian region. The report examines investment trends between 13 Eurasian countries - Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan - and external partners, including China, Turkey, Iran, and the Gulf states, from 2016 to the first half of 2024. Key Findings on Investment Trends According to the EDB, total MDI stock in the region reached $90.4 billion by mid-2024, reflecting a 6.4% increase from 2023. China remains the largest investor in the Eurasian region, holding an MDI stock of $58.6 billion at the end of H1 2024, accounting for 64.8% of the total. Other major investors include: Turkey - $12.3 billion (13.6%) United Arab Emirates (UAE) - $12.2 billion (13.5%) Iran - $3.2 billion (3.5%) Saudi Arabia - $2.3 billion (2.5%) Qatar - $1.6 billion (1.8%) Among these, Iran showed the highest investment growth, doubling its investments since 2016, with 90% directed toward Azerbaijan. Turkey demonstrated broad sectoral diversification, while Saudi Arabia and Qatar emerged as new investors, making their first investments in 2021 and 2024, respectively. Investment Distribution in Eurasia The largest investment recipients in the Eurasian region include: Russia - $23.5 billion (26%) Turkmenistan - $17.5 billion (12.5%) Kazakhstan - $15.5 billion (11.1%) Mongolia - $10.3 billion (7.4%) Uzbekistan - $8.8 billion (6.3%) Central Asia received 51% of all investments from China, Turkey, Iran, and the Gulf states, totaling $46.2 billion, an increase of 25% since 2022. Outbound Investment from Eurasia The report also highlights outbound investments from the Eurasian region, which totaled $49.4 billion, doubling since 2016. Turkey received 80% of these investments, with a significant portion originating from Russia. Sectoral Trends: Energy, Manufacturing, and Greenfield Investments China continues to expand its investments in energy and manufacturing, although its traditional focus on extractive industries has declined. As of mid-2024, Chinese investment in mining and resource extraction stood at $36.2 billion, comprising 61.7% of its total investments in Eurasia. Other notable sectoral trends include: Energy sector - Chinese investment grew 2.1-fold in 18 months to $4.1 billion, with 85% directed toward Uzbekistan. Manufacturing sector - Investment increased 8% to $11.8 billion, with most projects concentrated in Central Asia. The Gulf states are also expanding their investments in the region: The UAE invested $12.2 billion, with 90% of its projects in Central Asia. Saudi Arabia increased investments from $300 million in 2021 to $2.3 billion in 2024, primarily in Uzbekistan’s power sector. Qatar made its first major investment in Kazakhstan in 2024, committing $1.6 billion to the telecom sector. Rise of Greenfield Investments Greenfield projects - new businesses and infrastructure developments - remain the dominant form of MDI, totaling $57 billion, nearly double the 2016 level. These projects now account for 63% of total investments, driven by the economic growth of Central Asia and increasing investor interest in energy, manufacturing, and extractive industries.