• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 -0%
  • TJS/USD = 0.10866 0.18%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
12 December 2025

Which Central Asian States Qualify as Middle Powers in 2025?

As global power shifts toward multipolarity, Central Asia’s states are emerging as active regional players. This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change.

A comparative analysis of five Central Asian republics shows how far each has advanced toward this status.

As global power shifts toward multipolarity, Central Asia’s states are emerging as active regional players. This article assesses which of the five republics—Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan—qualify as middle powers in 2025, based on economic strength, diplomatic reach, strategic capacity, and governance. Kazakhstan stands as the region’s only consolidated middle power, balancing fiscal stability, institutional reform, and multi-vector diplomacy. Uzbekistan is a rising aspirant, propelled by reforms but still reliant on external financing and centralized authority. The remaining states remain constrained by dependence and limited institutional depth. Together, they reflect a region increasingly capable of shaping, rather than merely absorbing, global and regional change.

A comparative analysis of five Central Asian republics shows how far each has advanced toward this status.

Economic Power

Economic autonomy is a defining attribute of middle-power capability, enabling states to project influence, sustain policy independence, and finance external engagement. In Central Asia, dependence on Official Development Assistance (ODA) and remittances often reflects constrained fiscal capacity and limited domestic capital formation, while diversified, resilient economies underpin strategic autonomy. Key indicators—GDP per capita, credit ratings, debt sustainability, and export diversification—illuminate the region’s economic hierarchy.

Kazakhstan stands as Central Asia’s only consolidated economic middle power. Resource-backed growth, a prudent fiscal regime, and a sovereign wealth fund (the National Fund of Kazakhstan) have anchored macroeconomic stability. With a “BBB” credit rating or equivalent from major agencies, Kazakhstan demonstrates sound debt management and policy credibility. Ongoing diversification efforts under the new economic policies—from renewables to financial modernization—aim to reduce hydrocarbon dependence and deepen integration into global supply chains. Its role as a trans-Caspian logistics hub enhances both strategic and commercial influence.

Uzbekistan, by contrast, is an emerging frontier market propelled by post-2017 reforms in currency liberalization, taxation, and state-enterprise restructuring. Rapid GDP growth and expanding private-sector activity mark its trajectory toward fiscal autonomy, though continued ODA inflows averaging around $1.1 billion to 1.3 billion annually, primarily from the Asian Development Bank (ADB), the World Bank, and bilateral partners such as Japan, the United States, and the European Union, highlight its residual dependence on external concessional financing. To achieve genuine middle power status, Uzbekistan must roughly double its real economic output over the next decade, a scale of growth aligned with the shift from lower- to upper-middle-income status and the economic mass needed for regional influence. This requires not only expanding its industrial and financial base to compete as a producer, but also raising domestic purchasing power to emerge as a significant consumer market, turning its geographic position into real economic power.

Turkmenistan possesses vast gas wealth but remains constrained by autarkic economic management and an overreliance on exports to China. Currency controls, limited transparency, and minimal diversification inhibit the translation of resource income into sustainable influence.

Kyrgyzstan and Tajikistan remain aid- and remittance-dependent economies, with narrow industrial bases and persistent external vulnerabilities. Remittances from migrant labor account for up to half of their GDP, cushioning fiscal shortfalls but deepening reliance on Russia, China, and international lenders. Despite participation in regional initiatives, their structural dependence restricts their ability to shape economic outcomes independently.

Overall, Central Asia exhibits a two-tier economic order: Kazakhstan as a mature middle power, Uzbekistan as a transitional aspirant, and the remaining states as externally conditioned economies with limited strategic leverage.

Central Asian Economic Power Comparison 
Criterion Kazakhstan Uzbekistan Turkmenistan Kyrgyzstan Tajikistan
1. GDP Size & Growth (2024 nominal values-IMF & World Bank) High – ~US $250 B; ˜ 4.2 % growth; ~US $12,700 per capita. Medium–High – ~US $120 B; ˜ 5.6 % growth; ~US $3,300 per capita. Medium–Low – ~US $85 B (opaque); ˜ 3 % growth (est.); ~US $4,600 per capita (likely overstated). Low – ~US $14 B; ˜ 4.3 % growth; ~US $1,900 per capita. Low – ~US $12 B; ˜ 7 % growth; ~US $1,200 per capita.
2. Diversification Medium–High – Energy and resource led trade in… Corridor; diversified partners in the EU, Türkiye, and China. Medium–Low – trade in gold, energy, textiles, …tan and China; key partners include Russia, China, and the EU. Low – Gas-centric, state-dominated economy w…inimal diversification and limited private sector development. Low – Gold-dependent, remittance-driven economy with limited industrial base and modest diversification. Low – Remittance-led, hydro- and aluminum-depe…conomy with limited diversification and weak industrial base.
3. Trade Integration High – WTO & EAEU member; energy- and resource…iversified partners incude Russia, China, the EU, and Türkiye. Medium–Low – non-WTO, non-EAEU; trade in gold,…es, and autos; key partners include Russia, China, and the EU. Low – non-WTO, non-EAEU; State-controlled; exports to China & Russia dominate; weak transit role. Medium – WTO & EAEU member; trade in gold and re-exports; high dependence on Russia and China. Low – WTO member; limited export base; transit and remittances heavy; reliance on Russia/China.
4. Investment & FDI Attractiveness Medium–High – Strong FDI in energy, mining, renewables; improving business climate; regional hub potential. Medium – Reform improving climate; FDI in energy, gold, textiles, autos; privatization agenda ongoing. Low – Opaque governance; limited private sector; low FDI beyond gas; heavy state control. Low – Smaller market and instability; reliance on remittances; limited FDI beyond gold and services. Low – Limited FDI; infrastructure and energy projects led by China and IFIs; weak private sector.
5. Infrastructure & Connectivity High – Rail/road pipelines; Caspian ports; TTC leadership; good logistics performance by regional standards. Medium – Landlocked; improving roads/rail; growing logistics with China–Europe corridors. Medium–Low – Gas pipeline infrastructure; port of Turkmenbashi; low integration with neighbors. Low – Limited infrastructure; mountainous constraints; reliant on crossings via Kazakhstan/China. Low – Mountainous; limited road/rail; dependence on regional corridors; hydropower assets.
Economic Power Summary 🟩 Strong (middle power) 🟨 Reforming emerging power 🟧 Resource-dependent / narrow-based economy 🟥 Small, remittance- and aid-dependent economy 🟥 Low-income, remittance-dependent economy

Diplomatic & Regional Influence

Kazakhstan remains the most diplomatically influential state in Central Asia, pursuing a multi-vector foreign policy that balances relations with Russia, China, the United States, the European Union, and the Islamic world. Astana positions itself as a regional stabilizer and neutral convener, hosting high-profile platforms such as the Astana International Forum and the Congress of Leaders of World and Traditional Religions, and serving as a venue for Russia–Ukraine and Syria peace talks. Through leadership in the Conference on Interaction and Confidence-Building Measures in Asia (CICA), the Eurasian Economic Union (EAEU), and the Shanghai Cooperation Organization (SCO), Kazakhstan has become the region’s diplomatic anchor and a bridge between Europe and Asia. Additionally, it has emerged as a pan-Asian educational hub, using world-class universities and international partnerships to extend its soft-power reach across the continent.

Uzbekistan, under President Shavkat Mirziyoyev, has become a rising diplomatic power, advancing a reformist foreign policy centered on economic integration, water and energy diplomacy, and regional cooperation. Tashkent’s emphasis on intra-Central Asian summits and Afghanistan engagement has made it a leading advocate of pragmatic regionalism. Its expanding soft-power diplomacy—through cultural, educational, and developmental initiatives—complements Kazakhstan’s leadership, forming a cooperative dual-core in regional diplomacy.

Turkmenistan, adhering to its policy of positive neutrality, engages selectively through energy and transit diplomacy, leveraging hydrocarbon exports and pipeline routes to maintain relevance with China, Iran, and the Caspian states. Its diplomacy remains transactional and limited to issue-specific cooperation, avoiding deep institutional commitments.

Kyrgyzstan and Tajikistan actively participate in multilateral frameworks such as the SCO and the Collective Security Treaty Organization (CSTO), but wield limited diplomatic influence due to domestic challenges and reliance on external partners. Kyrgyzstan’s civic diplomacy and Tajikistan’s water security advocacy provide niche influence, though persistent border disputes and political volatility constrain their broader regional roles.

Central Asian Diplomatic Influence Comparison
Criterion Kazakhstan Uzbekistan Turkmenistan Kyrgyzstan Tajikistan
1. Multilateral Engagement High – Active in UN, SCO, CICA; hosted OSCE summit; mediates between Russia/West; TTC leadership. Medium–High – Active in SCO, OTS (Türkic states), engaging with EU; regional convenings in Samarkand/Tashkent. Low – “Positive Neutrality”; limited multilateral role; UN messaging but little practical engagement. Medium – Engages in CSTO, EAEU, SCO; limited convening power; reliant on Russian security umbrella. Medium – Active in CSTO, SCO; focus on security/development; limited convening power.
2. Regional Leadership & Convening High – Hosts TTC, Astana diplomacy; key energy transit and policy hub; space/cosmodrome legacy. Medium–High – Regional initiatives under Mirziyoyev; summits with neighbors; reform image boosts soft power. Low – Limited regional convening; border/trade frictions; minimal soft power. Low – Limited convening capacity; domestic politics distract; occasional bilateral diplomacy. Low – Narrow security focus; reliance on Russia/CSTO; limited convening role.
3. External Partnerships High – Balances Russia, China, West, Türkiye; invests in EU energy security; US partnership. Medium–High – Strengthening ties with EU/US/Japan; deepening China; pragmatic Russia ties. Medium–Low – China energy dependence; limited beyond gas; cautious with Russia/Iran. Medium–Low – Reliant on Russia; China loans; limited Western ties. Medium–Low – Reliant on Russia for security; China for infrastructure; modest Western engagement.
4. Soft Power & Global Perception Medium–High – Education exchanges, Expo legacy, cultural diplomacy; image of pragmatic stability. Medium – Reform branding improves image; tourism/culture growing; human rights concerns persist. Low – Insular state; limited exchanges; weak international image. Medium–Low – Civil society visibility but political instability; modest culture/tourism appeal. Low – Security/state control image; limited cultural reach; tourism potential underused.
5. Conflict Mediation/Border Management Medium–High – Hosted Syria talks; manages multi-vector diplomacy; stable borders. Medium – Increased mediation attempts; improving border agreements with neighbors. Low – Minimal role; unresolved border friction episodically. Low – Periodic border clashes (esp. with Tajikistan); limited mediation capacity. Low – Border tensions with Kyrgyzstan; limited mediation capacity.
Overall Standing 🟩 Strong 🟨 Emerging 🟧 Limited 🟥 Weak 🟥 Weak

Strategic & Security Capacity

Kazakhstan maintains one of Central Asia’s most capable and institutionally coherent armed forces, supported by growing resource revenues and increased defence spending, and a sustained modernization agenda. Building on a multi-branch defense structure, Astana emphasizes air defense systems, drones, and improved mobility, alongside emerging cyber and technological capabilities. Its vast territory and proximity to both Russia and China compel a careful balance between obligations under the Collective Security Treaty Organization (CSTO) and selective cooperation with Western institutions such as NATO’s Partnership for Peace. While Kazakhstan’s armed forces remain integrated with Russian systems, their participation in UN peacekeeping missions, investment in defense-industry development, and involvement in regional counterterrorism initiatives underscore its role as a stabilizing actor and pragmatic security partner in Central Asia.

Uzbekistan maintains one of Central Asia’s most capable military forces, underpinned by a defense doctrine that emphasizes sovereignty, independence, and non-alignment. The 2018 update to its defense doctrine affirms a focus on territorial defense, self-reliance, and refusal to host foreign military bases. While continuing bilateral defense cooperation with Russia through a strategic partnership program for 2026–2030, Tashkent has simultaneously expanded military ties with China and South Korea to modernize equipment and training. Its strategic proximity to Afghanistan reinforces a focus on border security, counter-terrorism, and regional dialogue, while its multi-vector foreign and defense policy reflects a pragmatic effort to balance great-power influence rather than align exclusively with any bloc.

Turkmenistan, by contrast, grounds its security policy in its constitutionally enshrined and UN-recognized status of permanent neutrality, first formalized by the 1995 UN General Assembly resolution and reaffirmed in its Constitutional Law on Permanent Neutrality (1996). Despite maintaining one of Central Asia’s largest nominal troop numbers—estimated at roughly 40,000 personnel—its armed forces remain undertrained and reliant on Soviet-era equipment and are primarily defensive, focused on securing borders and protecting energy infrastructure. Eschewing formal alliances, Ashgabat avoids formal military alliances, preferring bilateral consultations with neighboring states and selective security cooperation with major powers—chiefly Russia and China, and to a lesser extent the United States—focused on counter-terrorism, border security, and regional stability. Geographically situated between Afghanistan and Iran, Turkmenistan holds latent strategic value as a buffer state, yet its insular foreign policy and limited interoperability constrain its broader regional influence.

Kyrgyzstan and Tajikistan possess modest, resource-constrained armed forces that remain heavily dependent on external security guarantees, primarily from Russia and, to a lesser extent, China. As members of the Collective Security Treaty Organization (CSTO), both host major Russian military installations—Kant Air Base in Kyrgyzstan and the 201st Military Base in Tajikistan—which anchor their defense postures. Their militaries are chiefly oriented toward border control, internal stability, and counter-narcotics operations, with limited capacity for sustained conventional warfare. Repeated border clashes—particularly in the Ferghana Valley—highlight weak command structures and fragile interoperability. While Russia remains the principal security guarantor, China’s growing provision of training, surveillance technology, and equipment signals a gradual but notable expansion of Beijing’s influence across Central Asia’s southern tier.

Central Asian Military Capability and Strategic Posture (≈ 2024)
Criterion Kazakhstan Uzbekistan Turkmenistan Kyrgyzstan Tajikistan
Active Military Personnel (normalized per 1,000 pop.) ~40–45,000 active; ~30,000 reserves; largest professionalized force; growing modernization. ~65,000 active; ~35,000 reserves; large conscription-based manpower pool. ~36,000 active; limited reserves; internal security–focused. ~13,000 active; ~10,000 reserves; small and under-equipped. ~9,000–10,000 active; ~7,000 paramilitaries; focused on counterterrorism and border defense.
Defense Expenditure (2024 est.) (% GDP / per capita) ~1.0% of GDP (~$1.8–2.0B); ~95 USD per capita; stable budget supporting modernization. ~1.3% of GDP (~$1.5B); ~70 USD per capita; increasing budget with reform momentum. ~3% of GDP (~$1.4B); ~140 USD per capita; opaque allocations, regime security priority. ~1.5% of GDP (~$200M); ~30 USD per capita; aid-dependent. ~1.6% of GDP (~$250M); ~35 USD per capita; reliant on external assistance.
Force Modernization & Technology Modern armor and aviation (Su-30SM, MiG-31), UAV adoption, integrated air defense; domestic upgrades. Active modernization of T-72B3 and Mi-35 fleet; UAV adoption; growing C4ISR efforts. Limited modernization of aging Soviet platforms; niche air defense and naval assets (Caspian). Outdated Soviet arms, weak maintenance, minimal C4ISR; incremental upgrades. Very limited modernization; reliant on Russian equipment and support.
Defense Industry & Autonomy Developing defense industry (repair/upgrade; some assembly); growing autonomy via partnerships. Limited but expanding repair/maintenance capacity; exploring domestic production. Minimal industry beyond procurement; dependence on imports. No significant industry; relies on external support/aid. No defense industry; entirely reliant on Russian/foreign support.
Alliances & Security Architecture CSTO interlocutor; multi-vector ties with Türkiye/China/US; regional exercises; border security strength. Non-CSTO; bilateral ties with Russia/Türkiye/US; growing SCO role; autonomous posture. Neutrality; limited alliances; selective security cooperation. CSTO member; hosts Russian base (Kant); reliance on Russian security. CSTO member; hosts Russia’s 201st base (Dushanbe); reliance on external security guarantees.
Operational Readiness & Training Regular exercises; professional NCO development; better readiness than peers. Training reforms; conscription-based but improving readiness. Limited readiness; focus on regime security; constrained training. Low readiness and morale; dependent on Russian support. Readiness limited to border operations; Russian mentorship crucial.
Internal Security & Paramilitaries Robust internal troops and border service; lessons from 2022 unrest applied. Large internal forces; policing and border control capacity growing. Strong internal security apparatus; regime protection priority. Dependent on Russian support for border management; limited capacity. Dependent on Russian and CSTO mentorship for internal security.
Cyber & Information Security Developing cyber units; information control capacity; regional leader. Nascent cyber capabilities; growing digital defense focus. Minimal cyber capabilities. Minimal cyber capabilities. Negligible cyber capacity; reliance on external partners.
Geostrategic Leverage / Access Controls key Eurasian corridors; Caspian naval presence; strategic air transit hub between Europe and Asia. Central position linking Afghanistan, China, and the Caucasus; major logistics and trade hub in SCO framework. Energy-transit corridor with neutrality policy that limits external leverage. Limited regional influence; dependent on CSTO presence and foreign aid. Border with Afghanistan gives tactical importance but strategic vulnerability.
Overall Strategic Standing (Security Power Profile) Strong Regional Security Actor – Balanced and professionalized force with multi-vector partnerships and credible deterrence. Emerging Regional Power – Rapidly modernizing, increasingly autonomous, and integrated with multiple partners. Stable but Insular – Energy-rich and inward-oriented; limited projection and partnerships. Weak and Dependent – Small, under-resourced; reliant on Russia for defense and training. Weak and Vulnerable – Security dominated by external actors; minimal autonomy.

Governance

Governance across Central Asia remains state-centred, focused on stability, modernization, and administrative control. While political pluralism is limited, regimes seek legitimacy through performance and competence. Effective governance broadens opportunity and gives citizens a stake in national progress, making stability self-reinforcing. It also defines middle power identity: the capacity to maintain order, deliver policy, and project predictability builds credibility abroad.

Kazakhstan’s political course under President Kassym-Jomart Tokayev combines traditional values, national identity, and institutional modernization. Tokayev has brought the country away from personalized rule toward a system more firmly based on institutions and the rule of law. The “Fair and Just Kazakhstan” agenda focuses on efficient governance, social equity, and disciplined state management. The 2022 constitutional amendments establishing a single, non-renewable seven-year presidential term, formalized succession rules, and reinforced policy continuity. Efforts to streamline bureaucracy and reduce overlap, together with limited decentralization measures, have aimed to make the government leaner and more responsive while maintaining stability. These adjustments have strengthened institutional reliability, the basis of Kazakhstan’s credibility abroad. Its determination for a predictable policy and controlled reform, combined with social cohesion, gives the state the steadiness and diplomatic flexibility typical of a middle power positioned between competing spheres of influence.

Uzbekistan’s governance under President Shavkat Mirziyoyev has centered on consolidating state capacity through controlled modernization and strategic engagement. His leadership has sought to strengthen national coherence by reforming administration, opening markets, and reinvigorating regional diplomacy. These efforts have enhanced the state’s functionality and visibility abroad, projecting an image of renewal and competence. Yet decision-making remains concentrated in the presidency, where personal authority drives policy and coordination. This concentration allows swift action and clear direction—traits that reinforce Uzbekistan’s short-term effectiveness as an emerging regional actor—but it also constrains the development of resilient institutions that underpin middle power credibility. The durability of Uzbekistan’s influence will depend on its ability to institutionalize governance beyond individual leadership, ensuring that modernization translates into predictable policy and sustainable legitimacy. In that balance between control and institutionalization lies the test of its middle power maturity.

By contrast, Turkmenistan, Kyrgyzstan, and Tajikistan retain distinctive governance trajectories shaped by domestic conditions, each reflecting a different path toward or away from middle power credibility. Turkmenistan’s neutrality policy reinforces and insulates decision-making from external pressure, yet the same isolation constrains institutional development and limits the state’s engagement capacity. Kyrgyzstan’s pluralistic politics sustain a vibrant civil society and open debate—attributes that enhance soft-power appeal—but persistent volatility and leadership turnover weaken policy continuity and credibility. Tajikistan prioritizes centralized control to preserve stability, drawing on Persian cultural heritage to sustain trans-border identity linkages. While this approach reinforces internal cohesion, it limits institutional openness and constrains Tajikistan’s potential to evolve into a more adaptive and outward-oriented middle power.

Overall Middle Power Ranking (2025)
Rank Country Status Summary
1 Kazakhstan Established regional middle power Economic anchor, active diplomacy, strategic balance
2 Uzbekistan Emerging middle power Reform momentum, growing influence, high aid dependence
3 Turkmenistan Resource-based niche power Energy leverage, limited diplomacy
4 Kyrgyzstan Fragile capacity Small economy, security reliance, limited influence
5 Tajikistan Low capacity Aid dependence, border focus, minimal soft power

Takeaway

In 2025, Central Asia’s geopolitical landscape reflects a clear hierarchy of middle power maturity. Kazakhstan stands as the region’s only consolidated middle power, balancing economic resilience, diplomatic versatility, and institutional stability to exert sustained regional influence. Uzbekistan has emerged as a credible aspirant, propelled by reforms and strategic outreach, but must deepen institutional capacity and economic diversification to achieve full middle power status. The remaining republics—Turkmenistan, Kyrgyzstan, and Tajikistan—retain limited influence, constrained by economic dependence, insular governance, or security reliance on external patrons. Together, these dynamics underscore a gradual but significant evolution: Central Asia is no longer a passive periphery of great power politics, but a region where select states—led by Kazakhstan and Uzbekistan—are beginning to shape the terms of regional order and engagement on their own.

AI Analyst to Help Kazakh Businesses Find Optimal Sales Locations

Kazakhstan’s Ministry of Finance is piloting a digital platform that uses AI and big data to help entrepreneurs identify the most profitable locations for selling their products. Deputy Finance Minister Aset Turysov announced the initiative during a recent briefing.

The new AI-driven tool is integrated into the Ministry’s “Digital Map of Public Finances.” It utilizes electronic invoice data, machine learning algorithms, and commercial activity analytics to generate real-time maps of high-demand areas, aimed specifically at small and medium-sized businesses.

“The Digital Map includes an AI analyst that processes receipts to identify where and which goods are in highest demand. We are currently testing this feature and plan to make it accessible through digital platforms, such as personal taxpayer accounts,” Turysov said. “If a business owner is unsure where to sell their products, the system will suggest the most advantageous locations.”

AI to Support Targeted Subsidies and Smarter Investment

The platform is designed not only to boost private sector efficiency but also to optimize state support programs. The AI tool will assist in allocating subsidies and issuing preferential loans by identifying promising business locations. This data-driven approach is expected to enhance investment outcomes and lower the risk of loan defaults.

By discouraging over-concentration of businesses in particular sectors or regions, the system promotes more balanced economic development across the country.

“For example, if someone wants to open a coffee shop, AI can flag areas where there’s already saturation and recommend neighborhoods where such services are lacking,” said a ministry representative. “This helps entrepreneurs allocate resources more effectively and avoid unprofitable locations.”

Customs and Compliance Applications

Artificial intelligence will also be implemented at customs checkpoints. In the initial phase, AI systems will match customs declarations with actual images of cargo, automatically detecting inconsistencies. This feature is currently in pilot testing.

Parallel to this, the State Revenue Committee is expanding its use of the Digital Map project to gather data on company operations, cash register usage, and commodity flows.

“For instance, 260,000 cash registers reported only one receipt over the course of a year, highlighting poor cash discipline. We will be sending notifications to those entities, urging them to increase operational transparency,” Turysov stated.

Toward Full Fiscal Visibility

Looking ahead, the system will integrate additional data sources, including corporate expenses, to provide a comprehensive view of income and expenditures by region. This will enable dynamic price and commodity flow analysis, supporting more accurate budget planning powered by AI.

Turysov also noted that an independent IT audit conducted in 2024 led to a significant digital overhaul of the State Revenue Committee. The number of internal platforms was reduced from 14 to 5 key systems: Smart Data Finance (SDF), the Integrated Tax Administration System (ISNA), SUR, ESF, and Keden.

“The Smart Data Finance system is now the core of our digital transformation. It consolidates data from 74 sources, automates tax processes, reduces paperwork, and forecasts revenues using AI,” Turysov said.

Previously, The Times of Central Asia reported that the Ministry of Finance will begin blocking foreign online platforms that fail to register for VAT and pay taxes in Kazakhstan, starting next year.

Kazakhstan Expands Grain Exports to Europe and Beyond

Kazakhstan is entering new grain export markets, including the United Kingdom, Norway, and Portugal, as part of a broader push to diversify its agricultural trade, Agriculture Minister Aidarbek Saparov has announced.

Saparov reported that the 2025 harvest has been one of the strongest in recent years, with 27.1 million tons of grain crops harvested from 16 million hectares. The average yield reached 17 centners per hectare, and wheat production totaled 20.3 million tons, an increase of 500,000 tons compared to last year.

“We plan to maintain the level of wheat exports. This year, we have begun supplying markets that have not traditionally received Kazakh grain, Belgium, Portugal, Poland, Norway, the United Kingdom, Vietnam, the United Arab Emirates, as well as Morocco, Algeria, and Egypt in North Africa. Additionally, we have resumed shipments to Iran, Azerbaijan, Armenia, and Georgia,” Saparov said.

Kazakhstan exported 13.4 million tons of grain during the last marketing year (September 1, 2024, August 31, 2025), a 47% increase compared to the 2023-2024 season. As of the latest data, 2.2 million tons of grain from the new harvest have already been exported, marking a 21% year-on-year increase.

New Investments in Deep Grain Processing

To support long-term export potential and value-added production, Kazakhstan is implementing five major investment projects aimed at deep grain processing. According to the Ministry of Agriculture, these initiatives will enable the additional processing of approximately 2.5 million tons of grain products annually.

Among the most significant is a $1.5 billion investment by China’s Hopefull Grain & Oil Group to build a deep grain processing plant in the Akmola region. The project was discussed by Deputy Minister Yermek Kenzhehanuly and Hopefull’s local project manager, Yao Yao.

The project will be rolled out in two phases. The first phase includes constructing a combined heat and power plant to generate renewable energy. The second phase will launch a high-tech facility to produce citric acid, glucose-fructose syrups, bioethanol, and protein concentrates. The company is also considering establishing an industrial park equipped with transport, energy, and engineering infrastructure.

Focus on the Chinese Market

As previously reported by The Times of Central Asia, Kazakhstan also aims to increase grain exports to China to two million tons per year. This expansion into Asia complements the country’s growing presence in European and Middle Eastern markets.

Afghanistan Restores Power Imports from Uzbekistan and Tajikistan After Earthquake

A powerful earthquake that struck northern Afghanistan on November 2 caused significant destruction and disrupted electricity imports from neighboring Uzbekistan and Tajikistan, according to Da Afghanistan Breshna Sherkat (DABS), the country’s national power company.

The earthquake damaged two major transmission lines, Nayibabad to Samangan and Kholm to Pul-e-Khumri, severing power supplies from Uzbekistan to several provinces, including Kabul, Baghlan, Parwan, Panjshir, Kapisa, Logar, Paktia, Ghazni, and Maidan Wardak. Electricity imported from Tajikistan to Kunduz was also interrupted, leaving large swathes of northern Afghanistan without power. Technical teams were immediately deployed to assess the damage and begin restoration work.

The U.S. Geological Survey reported that the 6.3-magnitude quake struck at a depth of 28 kilometers near Mazar-i-Sharif. Tremors were felt across multiple provinces, including Samangan, Balkh, and the capital, Kabul. The cities of Aybak, Mazar-i-Sharif, Maymana, Takhar, Kunduz, and Sar-e-Pul experienced the strongest shocks.

According to CNN, at least 27 people were killed and more than 950 injured, citing Dr. Sharafat Zaman Amar, spokesperson for Afghanistan’s Ministry of Public Health. The quake also damaged one of the country’s historic mosques in the north.

DABS confirmed that electricity imports have now been fully restored, including the damaged 220-kilovolt transmission line from Tajikistan. On November 3, the company’s spokesperson told TOLONews that imports from both Uzbekistan and Tajikistan had been interrupted due to the earthquake. DABS representative Mohammad Sadiq Haqparast said, “Our technical teams are working diligently to restore both transmission lines as quickly as possible.”

Following the disruption, Kabul residents urged the government to accelerate repairs, emphasizing that stable and reliable access to electricity remains a critical concern, particularly in the capital.

Afghanistan is heavily reliant on imported electricity, receiving over 720 megawatts from Uzbekistan, Tajikistan, Turkmenistan, and Iran. These imports cost the country between $250 million and $280 million annually.

Separately, on the sidelines of the International Conference and Exhibition on Energy, Construction Affairs, Industry and Development of Chemicals of Turkmenistan-2025, DABS General Director Dr. Abdul Bari Omar met with Turkmen Deputy Cabinet Minister Batur Amanov. Their discussions focused on key regional energy projects, including the 500 kV transmission line, the TAPI gas pipeline, and the electrification of Bala Murghab district. The meeting underscored the importance of regional cooperation in bolstering Afghanistan’s energy infrastructure.

Kazakhstan Courts Global Investment with Critical Minerals and Green Energy Push

Since gaining independence, Kazakhstan has established itself as a reliable global supplier of raw materials. Today, the country’s economic structure is evolving as it positions itself as a high-added-value hub for industrial production. These developments are closely tied to Kazakhstan’s transition to a green economy and its role in global supply chains for critical minerals.

Creating a Favorable Investment Climate

Kazakhstan has taken significant steps to create a transparent, predictable investment environment and enhance its business competitiveness. Among these measures is the introduction of investment agreements that guarantee legislative stability for up to 25 years for large projects exceeding $60 million. The legal framework has also undergone reforms, procurement procedures have been modernized, and judicial reforms have created separate cassation courts and redefined the Supreme Court’s role.

These reforms have drawn the attention of international investors and rating agencies. In 2024, Moody’s upgraded Kazakhstan’s long-term credit rating to the highest level in the country’s history, citing macroeconomic stability and policy predictability. In the first nine months of 2025, GDP grew by 6.3%, while investment in fixed capital rose by 13.5% to reach $26 billion.

Moody’s analysts also highlighted Kazakhstan’s stronger economic outlook compared to other hydrocarbon-exporting nations, attributing this to ongoing reforms that enhance the country’s competitiveness. One key driver is the rapid development of the transport and logistics sector, particularly through the Trans-Caspian International Trade Route, also known as the Middle Corridor.

This corridor is attracting foreign investors across a range of non-oil sectors, including automotive, pharmaceuticals, food production, and construction materials.

Kazakhstan is also home to the Astana International Financial Centre (AIFC), a platform that operates under English common law. The AIFC offers tax exemptions, simplified labor regulations, and digital arbitration. It currently ranks first in Eastern Europe and Central Asia in the Global Financial Centres Index. More than 4,200 companies from 80 countries, including over 60 American firms, are registered with the AIFC.

Strategic Projects Take Shape

Kazakhstan’s diversification strategy and focus on critical minerals were prominently showcased during the 8th Kazakhstan Global Investment Roundtable (KGIR-2025), held in Astana in October. The event attracted over 1,000 participants from 55 countries, resulting in the signing of 49 agreements worth $7.5 billion.

A key session focused on critical minerals and the energy transition, signaling the country’s long-term growth trajectory. Among the highlights was a meeting between the government and Mohammad Vahid Sheikhzadeh Najjar, CEO of FakoorSanat Tehran Engineering Co., to explore cooperation in mining and metallurgy, including new technologies for processing mineral raw materials.

Sheikhzadeh Najjar noted that the global market for critical minerals, currently valued at $328 billion, is expected to double by 2032. He emphasized that Kazakhstan is well-positioned to lead this growth. Environmental initiatives, such as a project to process 55 billion tons of mining waste, offer additional economic potential.

Meanwhile, Chinese investor Zhang Jintao, founder of Chengdu Sepmem Energy, proposed a long-term plan to develop an LNG cluster in Kazakhstan. The project envisions a nationwide network of LNG plants and supporting infrastructure to reduce emissions and enhance energy access during the green transition. Chengdu Sepmem Energy already operates 12 LNG facilities in China and has completed over 500 projects.

Zhang highlighted China’s success in reducing winter air pollution through LNG, expressing confidence that Kazakhstan could achieve similar outcomes. The plan includes scaling up LNG use in freight and public transportation to support Kazakhstan’s carbon-neutrality goals.

Experts underscore that Kazakhstan’s natural gas reserves and strategic location between Asia and Europe make it an ideal base for LNG development. These efforts also support the expansion of the Middle Corridor, which connects China and Europe via the Caspian Sea and serves as a vital route for energy, minerals, and goods.

Competitive Edge in Critical Minerals

Global markets are shifting toward critical minerals, which are essential for producing electric vehicles, wind turbines, energy storage systems, and more. Demand is projected to increase tenfold in the coming years. For example, lithium demand could rise 42-fold by 2040, while copper, nickel, and cobalt demand could also double by 2035. By 2040, demand for minerals used in electric vehicles and energy storage systems could rise more than 30-fold.

Kazakhstan has designated the development of its critical minerals industry as a strategic priority. This is seen as the nation’s key contribution to the global clean energy transition.

Several national initiatives are already underway. These include the 2023-2027 Concept for the Development of the Geological Industry and the 2024-2028 Comprehensive Plan for the Development of the Rare and Rare Earth Metals Industry. A notable achievement under these programs was the opening of Kazakhstan’s first tungsten concentrate processing plant in November 2024. The United States is backing a private American bid by Cove Kaz Capital Group LLC to develop Kazakhstan’s major tungsten deposits at Upper Kairakty and North Katpar.

The country holds nearly 4% of the global copper market and ranks among the top 20 nations for nickel reserves, with 1.5 million tons, roughly 2% of global supply. In March 2024, a new lithium deposit valued at $15.7 billion was discovered in Eastern Kazakhstan by the Korea Institute of Geoscience and Mineral Resources.

The United States: Kazakhstan’s Leading Partner in Central Asia

U.S.-Kazakhstan cooperation continues to deepen. Since independence, U.S. companies have invested over $60 billion in Kazakhstan, 13% of the country’s total foreign direct investment. More than 630 American firms operate in Kazakhstan, drawn by its stability, market size, and access to regional supply chains.

In 2024, bilateral trade reached $4.2 billion, nearly double the amount five years prior. Kazakhstan accounted for 96.7% of all Central Asian exports to the U.S. that year, totaling $2.4 billion.

Kazakhstan’s green and industrial transitions have not gone unnoticed. The country remains committed to reform, economic diversification, and maintaining an investor-friendly environment, reinforcing its role as a strategic partner in a rapidly changing global landscape.

TCA Interview: Author Judith Lindbergh on Her Novel “Akmaral”, Set on the Kazakh Steppe

In recent years, many international writers have written books about Kazakhstan. One of these is the American author Judith Lindbergh, whose latest historical novel, Akmaral, is set on the Kazakh steppe.

TCA: The story of Akmaral is related to Central Asia, and particularly, Kazakhstan…

JL: Absolutely correct. Akmaral is about a nomadic woman warrior on the Central Asian steppes in the 5th century BCE. It’s based on archaeology that many of your readers are likely familiar with: the Siberian Ice Maiden discovered in Tuva and the Issyk Golden Warrior of Kazakhstan.

These two burials were just the beginning of my research, which also included the writings of the Greek historian Herodotus about the Amazon warrior women who fought in the Trojan War. I delved deeply into the history, landscape, and cultures of Central Asia, both ancient and modern. In writing my novel, I worked hard to understand how people lived, and still live, on the steppes: their traditional nomadic ways of herding and hunting, and especially how this ancient, often-forgotten culture fits into the broader story of human civilization.

Judith Lindbergh

TCA: How did the idea to write such a novel come about?

JL: It all started with a documentary about the Siberian Ice Maiden. I love ancient history and archaeology, especially when they reveal truths about women’s lives. The Ice Maiden burial was fascinating. Her body was so well preserved that I could almost imagine her standing before me. I wanted to understand how she might have lived, and to uncover the mystery of why she was buried in such an isolated place.

As I continued my research, I realized that she was not the only important female burial from that era in Central Asia. There were, in fact, countless others. Many women who had died of war wounds were buried with weapons. I began combining these burials in my imagination to create my main character, Akmaral, which I learned means “White Deer.” The name felt connected to the Siberian Ice Maiden’s famous tattoo, which became an important spiritual symbol in my novel.

I used extensive research to try to accurately represent what life might have been like for these ancient women. In historical fiction, as in history itself, women rarely play significant roles in public life. Yet these artifacts and burials show us that many nomadic women once held important military and spiritual positions.

 

There are almost no works written in English about nomadic peoples, including the real life and history of the Kazakhs. In fact, nomads were people who lived freely and truly in their time. And now we are not able to glorify their values, their way of life. What do you think about this?

You’re right that there’s very little written in the West about the Sarmatians, or really much about Central Asia at all. I wanted to bring my fascination with this vital, “forgotten” part of history to new readers.

In many ways, it can be hard for modern readers to understand and appreciate the sophistication and achievements of ancient peoples, nomads in particular. But to me, the idea that the land itself is home, and that nature provides everything we need, is both a challenge and an inspiration. In the West, and in modern life more broadly, we have grown so distant from the earth. What I saw in my characters, and in ancient nomadism, is a profoundly different relationship with the land that gave us life. I wanted to honor and portray that connection through my story.

TCA: Where did you get the details for this work?

JL: Along with countless archaeological and historical sources, I drew on many nomadic cultural traditions still practiced and honored in Kazakhstan, Mongolia, and Tuva. I tried to create as authentic a depiction of nomadic culture and traditions as possible, even though the story takes place in the distant past.

I deeply admire the resilience and self-sufficiency required to live a nomadic life, both among contemporary people who still live part of the year on the steppes and the ancient peoples who survived through herding and horsemanship. I wanted my characters to be deeply connected to nature and to understand the necessity of respecting the land.

While I’m fairly certain that I don’t have the stamina or fortitude to live that way myself, through my novel and its characters, I feel I’ve absorbed at least a touch of their strength and wisdom.

TCA: Did you have any difficulty in depicting the image of a female warrior from the Sarmatian era?

JL: The hardest thing for me was imagining being a woman who could willingly kill. I’m not a violent person myself, and I have no real hunting skills. Although I did practice archery and horseback riding to get a sense of what my characters’ daily life might have been like. But I can’t imagine doing many of the things that Akmaral had to do.

She had to hunt wild animals to survive, which was frightening enough. But she also had to protect her people from enemy attacks, facing close combat and death on a regular basis. Akmaral lived in a different time and place, and the values were different. Survival on the steppes, especially in ancient times, meant guarding oneself against countless dangers: wild beasts, hunger, deprivation, drought, heat, cold, and attacks from rival tribes.

Whenever I wrote a battle scene, I would prepare myself by listening to traditional Central Asian throat singing or other music played in deep, minor tones. It helped me face the fear and gravity of battle and death. I never wanted my characters to kill frivolously.

TCA: How do readers in America and other countries respond to your work?

JL: I have been thrilled at the reception to my novel so far, both by well-known American authors and readers in the USA and around the globe. Many readers are fascinated and surprised at the rich history of Central Asia, and by the realization that these women warriors aren’t made-up fantasy characters like in Game of Thrones. My characters are based on real archaeology that proves that women were once powerful warriors and leaders in a real time and place.

TCA: Have there been any proposals to translate the novel “Akmaral” into Kazakh?

JL: I’ve had a lot of interest and many requests for translations, including several conversations with Kazakh natives who either live in the U.S. or read English. I’m so grateful to hear that my research and imagination hold up against their real-life experiences and knowledge of the landscapes and cultures I tried to bring to life. But so far, no translation has been made.

I would love for a publisher in Kazakhstan to reach out to me or my publisher. The people who would truly understand my novel with all their hearts live in your country and region.

TCA: What do you know about Kazakh literature?

JL: A little. I’ve read one or two novels in translation, thanks to recommendations from Kazakh readers who reached out to me. Right now, I’m reading “Ulpan Is Her Name” by Gabit Musirepov, thanks to one of them. I know there is much more literature that I can’t yet access because I don’t read Kazakh, but I look forward to discovering more works in translation.

Sharing literature across languages is a powerful way to create compassion, understanding, and appreciation for our different cultures and for our shared humanity.