Turkmenistan Business & Economy - The Times Of Central Asia

Viewing results 1 - 6 of 161

Kazakhstan, Turkmenistan, Russia, and Iran to Boost Cargo Transport Along North-South Corridor

Kazakhstan, Turkmenistan, Russia, and Iran have reaffirmed their commitment to increasing cargo transportation along the North-South transport corridor. Representatives of national railway companies from the four countries met on January 30 in Almaty to discuss ways to enhance the corridor’s attractiveness and establish favorable end-to-end tariffs for shipments passing through Russia, Kazakhstan, and Turkmenistan to Iran’s Bandar Abbas port. According to Kazakhstan Temir Zholy (KTZ), the country’s national railway company, the meeting also addressed cargo transportation across Kazakhstan, particularly through the Bolashak rail station, located on the border between Kazakhstan and Turkmenistan. In 2024, 1.6 million tons of cargo was transported via this station. The North-South corridor, linking Russia, Kazakhstan, Turkmenistan, and Iran, has an annual capacity of 10 million tons of cargo. In July 2024, Kazakhstan hosted its first international meeting on the North-South transit and trade corridor, bringing together delegations from Azerbaijan, Armenia, Afghanistan, Kazakhstan, Russia, Belarus, Turkmenistan, the UAE, Iran, Iraq, Oman, and Uzbekistan. During that meeting, Kazakhstan, Iran, Turkmenistan, and Russia signed a roadmap for the eastern route of the corridor. The plan aims to expand the corridor’s capacity to 15 million tons annually by 2027 and 20 million tons by 2030. By connecting Russia and Belarus to Iran’s Persian Gulf ports, with further access to India, the North-South corridor is expected to enhance trade opportunities and further solidify Kazakhstan’s role as a key transit hub in the region.

Business & Economy Turkmenistan Turkmenistan International Affairs Turkmenistan Business & Economy Kazakhstan Kazakhstan International Affairs Kazakhstan Business & Economy

Afghanistan Advances TAPI Gas Pipeline Construction as Kazakhstan Explores Participation

Afghanistan has made significant progress in constructing the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. According to Ariana News, citing the Herat provincial governor’s office, approximately six kilometers of pipeline have already been laid since work began last month. Herat Governor Maulana Islam Jar assured project representatives of his full support, stating that TAPI will play a crucial role in strengthening the economy and promoting regional stability. Afghanistan's section of the pipeline is expected to take approximately two years to complete and represents a significant milestone for the broader project. TAPI is designed to connect Central Asia’s vast gas reserves with the rapidly growing energy markets of South Asia. During a recent meeting, TAPI’s general director in Afghanistan, Abdullah Yoof, updated Governor Jar on construction progress and outlined further plans for the project, including job creation and infrastructure development in Herat province. Meanwhile, Kazakhstan is actively exploring the possibility of joining the TAPI pipeline. The country’s Ministry of Energy has confirmed ongoing negotiations between the national gas company, QazaqGaz, and Turkmengaz, which owns an 85% stake in TAPI Pipeline Company Limited. However, officials have refrained from disclosing details, citing the confidentiality of the discussions. Kazakhstan’s interest in the project was first officially announced by Deputy Energy Minister Yerlan Akkenzhanov. Speaking at the Kazakhstan-Afghanistan Business Forum in October 2024, he highlighted that participation in TAPI could provide Kazakhstan with access to new markets, including Pakistan and India while attracting additional investment to the country’s gas sector. The TAPI pipeline, spanning over 1,800 kilometers, will traverse: Turkmenistan – 214 kilometers Afghanistan – 774 kilometers Pakistan – 826 kilometers The pipeline will terminate in India, providing a crucial energy link between Central and South Asia.

Central Asia Turkmenistan Home Home Uzbekistan Turkmenistan Tajikistan Business Economy Tajikistan Turkmenistan Business & Economy Uzbekistan Home Kyrgyzstan Uzbekistan Business & Economy Kazakhstan Business & Economy Kazakhstan Business & Economy Kyrgyzstan Business & Economy Tajikistan Home Kazakhstan Home Kyrgyzstan Home

Kazakhstan Leads Central Asia in Average Salaries

Kazakhstan continues to hold the top position in terms of average wages among Central Asian countries, according to a study conducted by analysts at Ranking.kz. Wage Comparisons Across Central Asia Data from the Interstate Statistical Committee of the CIS reveals that as of September 2024, Kazakhstan's average nominal monthly salary stood at $817.20. This figure is nearly twice as high as in Uzbekistan ($437.80) and Kyrgyzstan ($411.20). Tajikistan trails significantly behind, with an average salary of just $242.80 - 3.4 times lower than Kazakhstan’s. Notably, the wage gap between Kazakhstan and Tajikistan would have been even greater if not for a significant increase in Tajik wages. Over the past year, nominal salaries in Tajikistan rose by 24.9%, while real wages increased by 21.1% - the highest growth rate in the region. In comparison, wage growth in Kazakhstan, Kyrgyzstan, and Uzbekistan was more moderate. Data on salaries in Turkmenistan remains unavailable as the country has not updated its wage statistics since 2023. Minimum Wage Comparison Kazakhstan also leads the region in terms of minimum wages. In 2024, the minimum wage in Kazakhstan is 85,000 KZT ($181.10). By contrast: In Uzbekistan, the minimum wage is $89.40. In Tajikistan, it is $54.90. In Kyrgyzstan, it is just $28.30. In Turkmenistan, the official minimum wage is reported as $402.90, based on the fixed exchange rate of 3.5 TMT per dollar. However, due to the country’s reliance on a "black market" exchange rate (approximately 19 TMT per dollar), the actual minimum wage is estimated to be much lower, around $74.20. Sectoral Analysis When analyzing nominal salaries by economic sector, the highest wages in the region are found in finance and insurance. In Kazakhstan, the average salary in this sector exceeds $1,700 - three times higher than in Tajikistan ($561.90). Workers in Kazakhstan's mining industry also enjoy high incomes. In Uzbekistan and Kyrgyzstan, the financial sector and IT industry offer the highest salaries. Meanwhile, in Tajikistan, relatively high wages are reported in the manufacturing and service sectors. Inflation and Its Impact Inflation remains a key factor affecting the real purchasing power of wages across Central Asia. According to the CIS Interstate Statistical Committee, the most significant price increases in 2024 occurred in the economically developed countries of the region - Kazakhstan and Uzbekistan. Uzbekistan: Inflation reached 7.7% in October 2024. Kazakhstan: Inflation stood at 6.6%. Kyrgyzstan: Inflation was lower at 4.2%. Tajikistan: The region’s lowest inflation rate was recorded at 3.2%. These inflation rates directly influence the population's purchasing power, even in countries with higher nominal salaries like Kazakhstan and Uzbekistan. Kazakhstan’s leadership in wages and minimum income underscores its position as the most economically advanced country in Central Asia. However, inflation and significant disparities in income distribution between sectors and regions remain challenges. While countries like Tajikistan are showing progress in wage growth, the overall gap in earnings between Central Asian nations continues to highlight economic inequalities within the region.

Central Asia Uzbekistan Turkmenistan Tajikistan Business Economy Tajikistan Turkmenistan Business & Economy Kyrgyzstan Uzbekistan Business & Economy Kazakhstan Business & Economy Kazakhstan Business & Economy Kyrgyzstan Business & Economy

Central Asia’s Economic Growth to Reach 5% in 2025

The World Bank’s Global Economic Prospects report offers projections for economic growth, risks, and challenges across Europe and Central Asia (ECA), highlighting mixed outcomes for the region as a whole. Regional Outlook Economic growth across ECA is projected to slow to 2.5% in 2025, with a modest recovery to 2.7% expected in 2026. This deceleration is largely attributed to weaker economic activity in Russia and Turkey, two key regional economies. Excluding these two countries and Ukraine, growth in the rest of the region is forecasted to average 3.3% in 2025-2026. The recovery in these areas will primarily be driven by private consumption and investment, as inflationary pressures ease and monetary policies gradually become less restrictive. Despite these projections, significant risks remain. Global policy uncertainty and potential changes in trade policies could negatively affect trade flows, capital investments, and economic growth. Geopolitical tensions - particularly stemming from Russia’s invasion of Ukraine - and persistent inflation in the region could also pose serious challenges to stability. Central Asia: A Bright Spot Central Asia is expected to outperform the broader ECA region, with growth projected to accelerate to 5% in 2025 before softening to 4.2% in 2026. This growth will be driven by increased oil production in Kazakhstan, which will serve as a critical engine of recovery for the region. Remittances will also continue to play a key role, particularly for Kyrgyzstan and Tajikistan. These inflows provide vital support to household consumption and help improve current account balances. However, international sanctions on Russia and financial restrictions on cross-border transfers could push some remittance flows into informal channels, potentially limiting their economic impact. Long-Term Challenges While short-term recovery appears promising, the ECA region’s long-term growth potential remains subdued. Between 2022 and 2030, annual growth is projected to average just 3.0%, down from 3.6% in the previous decade. Several factors contribute to this slowdown, including labor shortages caused by low workforce participation rates, aging populations, and significant emigration, particularly from the Western Balkans. Education remains a critical area for improvement. Although ECA boasts relatively strong educational systems, issues such as declining quality in higher education and ongoing brain drain have hindered human capital development. Addressing these issues and improving education systems could help the region move closer to high-income economies in the long term. Conclusion While Central Asia’s projected growth for 2025 presents an optimistic outlook, the region - and ECA as a whole - faces significant headwinds. Structural challenges, geopolitical instability, and demographic pressures will require governments to adopt forward-looking policies to sustain growth and promote resilience. As inflation cools and monetary policies ease, targeted investments in education and workforce development could unlock new opportunities for long-term economic stability.

Central Asia Home Turkmenistan Turkmenistan Business & Economy Business & Economy Turkmenistan Features

First Kilometers of TAPI Gas Pipeline Completed in Afghanistan

The first three kilometers of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline have been successfully laid in Afghanistan, according to Mohammed Murad Amanov, the executive director of TAPI Pipeline Company Ltd. Amanov stated that the construction is progressing rapidly, raising hopes for the timely completion of the project. Deputy Governor of Herat Province, Nakibullah Ayub, visited the construction site and confirmed that local authorities are fully prepared to support the project's swift advancement. So far, 3.4 kilometers of the pipeline route in Afghanistan have been prepared, aligning with the established schedule. The Afghan section of the TAPI pipeline, which spans 821 kilometers, officially began construction in September 2024. To date, technical surveys have been completed on 153 kilometers of the route, and the initial three kilometers of pipeline were laid within four months. TAPI is a landmark regional energy project that aims to transport natural gas from Turkmenistan’s Galkynysh gas fields to consumers in Pakistan and India, passing through Afghanistan. The project is expected to enhance economic stability in the region and attract significant foreign investment. Economic experts have highlighted the strategic importance of the TAPI pipeline for Afghanistan. Analyst Mohammad Asif Stanekzai remarked that the project could boost Afghanistan’s economic credibility and pave the way for increased foreign capital inflows. Additionally, Afghanistan is projected to earn approximately $400 million annually in transit fees. Last week, Afghanistan’s Acting Minister of Mines and Petroleum, Hidayatullah Badri, held discussions in Kabul with Mohammed Murad Amanov about the progress of the TAPI pipeline and strategies to expedite the remaining work.

Central Asia Uzbekistan Turkmenistan Tajikistan Tajikistan Business Economy Kyrgyzstan Turkmenistan Business & Economy Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan Business & Economy Kyrgyzstan Business & Economy

EBRD Investments in Central Asia Hit Record High in 2024

The European Bank for Reconstruction and Development (EBRD) has announced a record-breaking year in Central Asia, investing €2.26 billion across 121 projects in 2024. This marks a significant milestone for the region, with the EBRD nearly doubling its annual investment compared to 2023. In addition to its own financing, the EBRD mobilized €784 million from co-financiers, bringing total investments in the region’s real economy to over €3 billion. Uzbekistan and Kazakhstan were the primary beneficiaries of EBRD funding, receiving €938 million and €913 million, respectively. These figures placed the two nations as the fifth and sixth largest EBRD investment destinations globally in 2024. Tajikistan received €88 million in EBRD funding, while Kyrgyzstan attracted €52 million. The bulk of EBRD investments - 61% - was directed toward sustainable infrastructure projects, while 24% of funds were allocated to local banks for on-lending to small and medium-sized enterprises (SMEs), women and young entrepreneurs, and initiatives focused on climate resilience and resource efficiency. The remaining 15% supported corporate sector clients. As the largest institutional green lender in the region, the EBRD has fully aligned its operations with the Paris Agreement. In 2024, 58% of its investments supported green economy projects, reaffirming its commitment to promoting sustainable development. The EBRD achieved major cumulative milestones last year. In Kazakhstan, its total investments surpassed €10 billion, while in Uzbekistan, cumulative funding reached €5 billion. Tajikistan and Kyrgyzstan have now each received over €1 billion from the bank since it began operating in Central Asia three decades ago. Overall, the EBRD remains the leading institutional investor in Central Asia, having financed 1,163 green and inclusive projects totaling €21.5 billion to date.