• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 -0%
  • TJS/USD = 0.10899 -0%
  • UZS/USD = 0.00008 -0%
  • TMT/USD = 0.28490 0%
08 December 2025

Kazakhstan to Slash Extraction Tax for Processing Man-Made Mineral Waste

Kazakhstan’s new draft Tax Code proposes a tenfold reduction in the mineral extraction tax (MET) for companies processing man-made mineral formations (MMF), a move expected to boost investment in mining waste reclamation and reduce environmental burdens.

Currently, Kazakhstan taxes the processing of MMF, mineral residues left in waste dumps after the primary extraction of solid minerals, at standard MET rates. These rates range from 21.06% for chromite ore to 2% for mineral raw materials containing technical stones. The application of these standard rates to waste materials has discouraged subsoil users from reprocessing them.

As a result, an estimated 55 to 60 billion tons of MMF have accumulated in dumps, tailing ponds, and storage facilities across the country’s mining enterprises, according to Gulnara Bizhanova of the Atameken Chamber of Entrepreneurs. She presented this data at the AMM-2025 Mining and Metallurgical Forum.

In Kazakhstan, only 11% of MMF is currently being processed, compared to 70-80% in many developed countries, where such waste is either exempt from MET or subject to significantly reduced rates.

“The draft Tax Code introduces a reduction coefficient of 0.1 for MET on the processing of MMF. The bill is still under consideration in the Senate,” Bizhanova stated.

Bizhanova noted that this change would benefit both the government and the private sector. For instance, Qarmet, a leading Kazakh steel and mining firm, plans to launch 10 projects worth $137 million if the tax reduction is approved.

“There are many investors interested in this area of MMF processing. It is also important to highlight that increasing waste processing will reduce the operational burden on active mines,” she added.

Previously, The Times of Central Asia reported that Aibar Dautov, head of the Kazakhstan Mining Industry Association, urged reforms to the MET framework to enhance state revenue from both oil and solid mineral extraction.

Uzbektelecom Responds to Arbitration Case Filed by Humans Mobile

Following the news that Humans Mobile Ltd has launched an international arbitration case against Uzbekistan, state-owned telecom operator Uzbektelecom has publicly denied any wrongdoing and accused the company of failing to pay its contractual debts.

On June 3, the International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank Group, registered the case filed by Humans Mobile Ltd, a subsidiary of the Singapore-based Humans Group. The company alleges that Uzbekistan violated a 2003 bilateral investment treaty between the two nations. According to Humans Mobile, actions taken by Uzbek authorities disrupted its business operations and undermined the investment climate.

In response, Uzbektelecom issued a detailed statement rejecting the accusations. The company stated that Humans Mobile has been using Uzbektelecom’s infrastructure since 2020 without developing its own network, unlike other mobile operators in the country.

“Humans continues to earn money by using our mobile network but delays payment for the services,” Uzbektelecom said.

The operator claimed that repeated warnings were issued to Humans about possible service disconnection due to unpaid debts. In turn, Humans filed a complaint with the Committee on Competition, alleging unfair treatment.

Some media outlets have suggested that Uzbektelecom may be leveraging its dominant market position to exert pressure on the Humans Group. Uzbektelecom dismissed these claims, asserting that Humans Group is free to contract with other providers such as Ucell, Beeline, or Mobi.uz. The company emphasized that no legislation mandates virtual mobile operators to exclusively use Uzbektelecom’s infrastructure.

Uzbektelecom also highlighted its broader contributions to national digital development. Between 2017 and 2024, the company claims it reduced the cost of 1 Mbps of internet bandwidth for local providers by a factor of 40.

Despite what it describes as repeated contractual violations by the group, Uzbektelecom says it continued to provide service in order to avoid disruption for end-users, including those who are not direct customers.

On May 8, the Tashkent Economic Court ruled in favor of Uzbektelecom, ordering Humans Group to settle its outstanding debt. The company said it may pursue additional legal action to protect its reputation should misinformation continue to circulate.

Uzbektelecom concluded its statement by reaffirming its commitment to fair competition, transparency, and open dialogue with all market participants, including Humans Mobile,  provided contractual obligations are met.

Expanding Preschool Education Boosts Women’s Employment in Uzbekistan

Expanding access to preschool education has emerged as a key factor in increasing women’s employment in Uzbekistan, according to a recent study by World Bank economists Chiyu Niu and Avralt-Od Purevjav, along with Central European University researcher Dilnovaz Abdurazzokova.

Covering the years 2018 to 2022, the study examines how public investment in early childhood education has influenced female labor force participation. In regions with the most substantial growth in preschool availability, women’s employment rose by 12%, equivalent to a 3.3 percentage point increase.

From Reform to Results

In 2017, less than 30% of Uzbek children aged 3 to 7 were enrolled in preschool, one of the lowest rates globally. In response, the government launched sweeping reforms: within four years, the number of kindergartens tripled, significantly expanding access in both urban and rural areas.

The researchers analyzed data from the “Listening to the Citizens of Uzbekistan” survey, which samples approximately 1,500 households monthly, alongside official labor market and education statistics.

Not Just Childcare, But an Investment

In many Uzbek households, childcare is traditionally provided by extended family members such as grandmothers, aunts, and older siblings. However, the study found that access to formal preschool services offers a more sustainable and consistent impact on women’s employment.

One striking finding was a cultural shift in how kindergartens are perceived: once seen primarily as childcare, they are now increasingly viewed as investments in a child’s development. Despite preschool costs ranging from 25% to 200% of a woman’s monthly income, many families are willing to pay, recognizing the long-term value.

“The expansion of kindergartens motivates families to work, it’s not just about time, but about purpose,” the researchers noted. Many women return to work not only because they have more time, but also to help cover the cost of preschool.

A Multigenerational Effect

The study also observed a broader labor market ripple effect: once children are enrolled in preschool, not only mothers but also grandmothers and aunts often seek employment. This illustrates a critical dynamic, when childcare responsibilities are shared more evenly, the overall economic participation of women increases.

Yet, access to preschool alone cannot close all gender gaps. In 2021, Uzbekistan’s gender gap in labor force participation stood at 28 percentage points. Youth unemployment among women was 15.5%, compared to 10% for men, and 42% of young women (ages 15-24) were not in employment, education, or training (NEET), compared to just 8.8% of young men.

Women also earned 34% less than men on average, well above the global average gender wage gap of 20%.

These figures highlight that while childcare reform is foundational, it must be accompanied by broader efforts to create meaningful employment opportunities for women.

A Model for Conservative Societies

Uzbekistan’s experience offers valuable lessons for other nations with strong family traditions. It demonstrates that investing in childcare infrastructure can lead to measurable improvements in economic participation, even in traditionally conservative societies.

As The Times of Central Asia previously reported, this topic was also discussed at the IV International Legal Forum “Tashkent Law Spring,” held on May 30. The Forum explored practical strategies to support women in traditionally male-dominated sectors such as law, energy, and public service, underscoring the need for policy reform backed by both government and business to create real opportunities for women.

Kyrgyzstan Prepares for Rapid Growth in E-Commerce

Speaking at the 11th Bishkek International Finance Forum (BIFF 2025), Prime Minister Adylbek Kasymaliyev stated that Kyrgyzstan is open to cooperation in digital finance, welcomes investment in the banking sector, and seeks to exchange expertise with international partners.

Kasymaliyev emphasized that digital transformation is integral to the global sustainable development agenda and that Kyrgyzstan is steadily implementing digital solutions to build a modern, trust-based financial ecosystem.

“Today, we stand at the threshold of a new digital era, where data processing technologies are transforming not only the financial system but also the foundations of public administration and socio-economic development. That is why digitalization is a strategic priority of the Kyrgyz Republic’s state policy,” said the head of the Cabinet.

Since 2023, Kyrgyzstan has actively promoted a cashless payment system using QR codes integrated with bank cards, e-wallets, and mobile applications. QR code payments have become routine for many citizens. The government is also developing digital platforms to support small and medium-sized businesses and expanding infrastructure for fintech startups.

Kasymaliyev noted that the introduction of the digital som will mark a key milestone in the country’s digital transformation. “After President Sadyr Japarov signed the law introducing the digital som, the implementation of this strategic initiative began. It will affect virtually all sectors of the economy and represents a significant step in developing the national digital economy,” he said.

Banking sector representatives stressed that forums like BIFF are essential not only for advancing electronic finance but also for addressing cybersecurity challenges. The forum has emerged as a platform for discussing innovative strategies to combat digital fraud.

Anna Kulashova of the Russian cybersecurity company, Kaspersky Lab, highlighted that the widespread adoption of digital financial technologies also increases exposure to cyber threats. “We are ready to share our knowledge and experience in the field of cybersecurity. We are open to developing cooperation in this area,” she said.

Visa representatives praised Kyrgyzstan’s pace of digitalization. According to Visa’s Evgeny Lesnyak, the country is frequently used as a testbed for innovative financial solutions. “In many countries, paying for public transport with contactless methods is still difficult. In Kyrgyzstan, this service has been available for four years via QR codes using Visa cards. That’s rare even in developed markets. We see Kyrgyzstan as a platform for testing innovations. Your solutions are exportable and help launch new services in other countries,” he said.

Aibek Kurenkeev, President of the E-Commerce Association and moderator of the forum, told The Times of Central Asia that Kyrgyzstan has gained valuable experience in modernizing its financial system. However, he stressed that rapid technological development requires greater openness and regional knowledge exchange.

“We heard engaging presentations on the stock market, Kyrgyzstan’s entry into international capital markets, protection against cyber threats, new payment solutions, and mechanisms such as the self-prohibition system for issuing loans. The forum brought together diverse experts, and I believe we’ve laid a solid foundation for a sustainable, transparent, and inclusive digital future,” he said.

Kurenkeev noted that fintech is one of Kyrgyzstan’s fastest-growing sectors, with cashless transactions now accounting for over 50 percent of all payments, and the trend is continuing to grow.

“For comparison, Kazakhstan’s share of non-cash payments is about 87%, a strong indicator. But in Kazakhstan, they can hardly imagine the speed of development we’re showing. We adopt and adapt quickly. We’re confident we’ll reach those figures faster than many neighbors,” he concluded.

Kurenkeev also expressed confidence that Kyrgyzstan will see significant growth in various sectors, including e-commerce, over the next two years.

Kyrgyz MPs Propose Ban on Pornographic Websites

A group of Kyrgyz parliamentarians has introduced draft legislation aimed at banning the distribution of pornographic content online. The proposal, currently under review, has sparked a mixed response among lawmakers.

The bill seeks to restrict access to websites hosting pornographic material and establish legal liability for their distribution. Under the draft law, the Ministry of Digital Development would be required to block access to online resources featuring prohibited content within 24 hours of receiving a complaint. Alternatively, the site owners must remove the content upon request from an authorized state body. If they fail to comply, the site could be blocked for up to two months.

The bill also grants any citizen the right to file a complaint with authorities if they encounter pornographic content online.

However, the initiative has drawn criticism from some MPs. Deputy Dastan Bekeshev questioned whether the proposed legislation duplicates existing laws. He pointed out that Kyrgyzstan already has legal provisions banning harmful content for children, including pornography.

“Do we need another law? Isn’t the previous one enough? We’ve already banned child pornography. Maybe adults should be allowed access to such content, at least with a password?” he asked. “In Japan, for example, people watch pornography, and nothing happens, the country continues to develop. If you ban everything online, people will start looking for it on the streets.”

Bekeshev argued that while the goal may be to promote public morality, such measures often fail and can even be counterproductive. “We need to begin with ourselves and lead by example,” he added.

In response, Marat Togaev, Deputy Minister of Culture, Information, and Youth Policy, explained that the current law only permits blocking websites registered within Kyrgyzstan. The new bill, he said, is designed to extend enforcement to websites regardless of jurisdiction.

Following parliamentary debate, the bill passed its first reading. Togaev noted that while telecom operators have the technical capability to block pornographic websites, they cannot prevent users from accessing such content via VPNs.

Strained Currents: Managing the Syr Darya’s Waters

On both banks of the Syr Darya, apartments are springing up. The embankment itself is undergoing extensive renovation. Trucks crawl along, their weight pounding the freshly lain asphalt into shape. Its acrid whiff rankles in the nose for some distance.

Kyzylorda’s new Akim, Nurzhan Akhatov, appointed in August 2024, is determined to make the most of his short term in office, explains Kanat Utegenov, founder of LLP ECO GUARD, an ecological laboratory. This makes the new landscaping important.

“There is a lot of construction… it is visually noticeable to the population,” he told The Times of Central Asia. “Unfortunately, the economics of it have not necessarily been calculated.” Utegenov cites a new stadium on the left bank of the river as an example of one of these potential white elephant projects.

Worse still, all this landscaping is dependent on one critical factor which is only partly under the control of the Akim, and only partly under the control of Kazakhstan. That issue is water.

The low-running Syr Darya passing through Kyzylorda, Kazakhstan; image: TCA, Joe Luc Barnes

In late April, the view that a ritzy new apartment buys you is one of sad, sandy banks. Wading birds plod methodically through the mud, looking for worms. The dirty grey river does not so much flow but keeps up a ponderous momentum, inching its way northwest. Some of this water will reach the North Aral Sea, which is being propped up on life support by the Kokaral Dam.

Utegenov attributes the low water level as being partly due to climatic change. “Winter has become milder and almost snowless,” he said, adding that it’s not unusual to see a low river in spring. “This is when the rice is planted; all the water goes to the irrigation canals.”

Governments across the region are doubling down on rice production, says Bulat Yessekin, an expert on environmental and water policy in Central Asia. However, he points out that growing rice is incredibly inefficient in this part of the world. “If we take into account the full irrigation cycle, five tons (5,000 liters) of water are used to cultivate just one kilo of rice,” he told TCA.

However, Kazakhstan’s government is keen to trumpet successes. The use of laser leveling technology in rice fields has helped save over 200 billion liters of water by distributing it more evenly. According to Kazakh state media, this has meant that the yield from each hectare of rice crop has increased by around 60-70%.

This has done little to convince Yessekin, who believes this is little more than a sticking plaster. “There was no such need for technology before as there was enough water. Now, such technology has become necessary because otherwise, they will simply not be able to grow the crop. In countries with much greater precipitation, such as Thailand or India, you can grow it, but here there are no prospects for rice. Sooner or later people need to move to other crops.”

Yessekin argues that the use of technological quick fixes demonstrates that the authorities have a paradigm issue. “All these technologies for saving water… their purpose is not water conservation or replenishment; it is simply to increase water intake.”

The Kokaral Dam; image: TCA, Stephen M. Bland

The flaw in focusing on “water intake” rather than “water conservation” can be seen a few hundred kilometers west of Kyzylorda, where the remains of the Aral Sea fester like a sore in the heart of Central Asia.

Two rivers flow into the Aral Sea: the Syr Darya, and its sister to the south, the Amu Darya. Each has seen its throughflow decline precipitously over the last century, both in the Soviet and independence eras.

Managing the flow of the Syr Darya requires the coordination of four countries: from its sources in Kyrgyzstan’s mountains, the river flows through Uzbekistan and Tajikistan before reaching Kazakhstan.

Every year, these countries agree on a quota for how much water they can drain from the river. Last year, Kazakhstan and Uzbekistan agreed to install digital monitoring stations to more precisely measure these flows.

For these four thirsty nations, the negotiations are complex, particularly as the river passes through the densely populated Ferghana Valley. Most of the Syr Darya’s waters are therefore allocated to Uzbekistan, the most populous country along its course.

Last year, given unexpectedly heavy rainfall, no country came close to using its limit, and more water than expected reached the Aral Sea.

Water user Water volume, km³
BWO schedule/limit Actual
1. Total water withdrawal (in the reach up to Shardara reservoir) 11.90 9.85
2. By country:
– Kyrgyz Republic 0.270 0.244
– Republic of Uzbekistan 8.800 7.566
– Republic of Tajikistan 1.905 1.312
– Republic of Kazakhstan 0.921 0.728

Indeed, over the previous three years, the North Aral Sea grew by 111 km2, with its volume increasing by around 17% in the same period.

Yessekin notes, however, that this increase in water levels is not necessarily positive. “Recent years have been a little better, but experts attribute this to the increased melting of glaciers. This is also not very good, because one day the melting period will end.”

A Dam Shame

Negotiations over water quotas often include much wrangling. Arguments are particularly fierce at the Syr Darya’s headwaters, says Eugene Simonov of the Rivers Without Boundaries think tank. He explains that in the Soviet period, large reservoirs, such as Kyrgyzstan’s Toktogul Reservoir, were built to regulate the flow of water to downstream areas to make it more predictable. However, he notes that since independence, Kyrgyzstan has begun repurposing those reservoirs to satisfy its energy needs.

“This caused significant disruptions in downstream water use,” Simonov told TCA. When water is used to power hydroelectric stations in winter, a side effect is that this increases the flow of water downstream, which can cause flooding. The inverse is true in summer, with downstream water being insufficient when it is hoarded in upstream reservoirs.

“So far, upstream countries (Kyrgyzstan and Tajikistan) have consistently refused to develop mutually enforceable agreements with their downstream neighbors, which limits their ability to distort the seasonal flow of rivers by regulating reservoirs,” said Simonov, adding that the inconvenience was such that it led Kazakhstan to build its own reservoir – Kok-Sarai – to try and gain a little more control over the flow of water.

Simonov warns that future projects, including Kambar-Ata-1, a planned Kyrgyz reservoir, will likely be the subject of more quarreling.

“In order to make this development safe for downstream countries, upstream neighbors need to agree to a mutually binding agreement to use the entire cascade for the common good. This has not happened so far, therefore further tensions are possible,” he said.

Rhetoric and Reality

The Syr Darya’s story is part of a broader systemic failure, driven by short-term political cycles and immediate economic pressures. Yessekin observes that dams and reservoirs, which are constructed under the guise of climate adaptation but, in reality, are built for economic and energy goals, act as “blood clots” on the rivers. “With each such action, we strengthen, accelerate, and increase the cause that leads to the degradation of the entire ecosystem,” he said.

Despite scientific knowledge and expertise within government ranks, the pressure to deliver visible results within limited political terms narrows planning horizons to just a few years, too short to address the long-term nature of water and climate crises.

In 2023, the first global water conference in over fifty years took place in New York City. At this and at regional summits, such as last week’s international conference on glacier preservation in Dushanbe, there has been a surge in rhetoric around sustainable water management. Yet there is a contradiction between what Central Asian governments proclaim internationally and what they pursue at home. Most glaring is the region’s failure to wean itself off its addiction to cheap cotton production, a crop that is almost as thirsty as rice, using four tons of water for every kilogram produced.

Without a dramatic shift in water usage habits across the region, the Syr Darya and the broader Aral Sea basin risk further decline. The potential consequences, Yessekin notes, could be severe: “All the recommendations, advice, and warnings that in three to five years there will be conflict and war or famine, they are simply not taken into account. This is the main tragedy of our system.”