Page 75 – The Times Of Central Asia

17 Oct 2025

Home, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

Kazakhstan Presents Economic Growth Strategy in Washington

October 17, 2025
By Vagit Ismailov

On October 15, Kazakhstan’s Deputy Prime Minister Serik Zhumangarin presented the country’s new proactive economic growth strategy to leading American businesses during a roundtable hosted by the U.S.-Kazakhstan Business Council (USKZBC) at the U.S. Chamber of Commerce in Washington, D.C. The meeting served as a key platform for dialogue ahead of the annual meetings of the World Bank and the International Monetary Fund.

The U.S. delegation included Khush Choksy, Senior Vice President for the Middle East, Turkey, and Central Asia at the U.S. Chamber of Commerce, along with executives from major corporations such as Chevron, ExxonMobil, Citi, Mastercard, Boeing, Bechtel, and LanzaJet.

Zhumangarin highlighted the longstanding commercial ties between the two countries, noting that over 600 American companies currently operate in Kazakhstan, including General Electric, Pfizer, Honeywell, Coca-Cola, and John Deere.

“Kazakhstan is an attractive country for American business. Our GDP this year will exceed $330 billion, approximately 60% of Central Asia’s total economy,” Zhumangarin stated, adding that GDP per capita at the end of 2024 surpassed $14,000, and $44,000 in terms of purchasing power parity. The government is aiming to raise total GDP to $450 billion by 2029.

Zhumangarin emphasized that Kazakhstan’s financial indicators remain strong, with national debt at about 22.2% of GDP – around $61 billion – a level comparatively lower than in most global economies.

Over the past two decades, the country has attracted more than $400 billion in foreign direct investment. According to Zhumangarin, less than one-third of that has gone into the raw materials sector, with the remainder directed to manufacturing, construction, transport, finance, and insurance.

Kazakhstan has recorded steady economic growth exceeding 5% for three consecutive years – 5.1% in 2023, 5% in 2024, and 6.3% in the first nine months of 2025. International credit rating agencies S&P, Fitch, and Moody’s have maintained Kazakhstan’s investment-grade ratings, with S&P upgrading its outlook to “Positive” and Moody’s assigning a “Baa1” rating.

Zhumangarin outlined a new economic strategy aimed at maintaining annual growth between 5% and 6%. Central to the plan is strengthening development finance institutions and launching large-scale projects in value-added sectors such as raw material processing, agriculture, and mechanical engineering.

“The total investment potential of these sectors is estimated at over $100 billion,” he said.

Priority industries include railway and automotive manufacturing, fertilizer production, waste processing, and the development of rare earth elements. Energy and municipal infrastructure are also major areas of focus, with projects worth $100 billion planned over the next five years.

“We invite leading international companies with deep industry expertise. Their participation will boost production efficiency, generate employment, and reinforce Kazakhstan’s image as a reliable investment destination,” Zhumangarin added.

The U.S. Chamber of Commerce, the world’s largest business association, represents over 3 million companies and 830 industry associations. The USKZBC comprises dozens of corporations active in Kazakhstan, including names such as Chevron, ExxonMobil, Fluor, Apple, GE, Bechtel, Boeing, and Mastercard.

In 2024, trade between the U.S. and Kazakhstan reached $4.2 billion. More than 720 enterprises with American participation are registered in the country, including 20 medium and large businesses.

Earlier this year, The Times of Central Asia reported that the two nations had finalized the largest locomotive supply agreement in their history, a $4.2 billion deal announced following a phone call between President Donald Trump and President Kassym-Jomart Tokayev. Officials credited the two leaders’ direct engagement with helping to secure the deal.

17 Oct 2025

Business & Economy, Uzbekistan, Uzbekistan Business & Economy

World Bank Approves $800 Million Loan for Uzbekistan’s Economic Reforms

October 17, 2025
By Sadokat Jalolova

The World Bank has approved an $800 million concessional loan package to support Uzbekistan’s ongoing structural reforms, aimed at reducing poverty, creating jobs, and expanding private sector-led growth. The financing is designed to help the government enhance competition, strengthen social protections, and foster a more dynamic economic environment.

The financial support will fund a broad set of policy initiatives, including mitigating the impact of energy tariff increases on low-income households, advancing gender equality in the workplace, and expanding access to social services for vulnerable populations. The package also targets reforms in key sectors such as telecommunications, agriculture, and energy, while supporting greater integration of Uzbekistan into global trade networks.

With favorable long-term repayment terms, the loan will reduce the country’s debt servicing costs and free up government resources for economic and social development. One of the central measures backed by the package is a significant boost in financial assistance for low-income families. Annual cash transfers per household will increase from UZS 270,000 to UZS 1 million to offset the rising costs of electricity, heating, and gas.

The World Bank package will also support legislation to protect women from sexual harassment and workplace discrimination, including safeguards against employment bias related to pregnancy or childcare responsibilities. Reforms will open the provision of social services to private and non-governmental organizations, enabling greater coverage and efficiency.

Among other key initiatives is the establishment of a National Investment Fund to manage and privatize state-owned enterprises. The creation of an independent telecommunications regulator is expected to promote competition, while new agricultural risk insurance schemes and liberalized cotton pricing aim to strengthen resilience and market access for farmers. Textile companies will be permitted to buy cotton directly from producers at flexible prices.

The reform agenda also focuses on trade liberalization, including the removal of exclusive rights in strategic sectors such as energy, oil and gas, and agriculture. Export procedures will be simplified, and new regulations will promote private participation in electricity distribution and allow renewable energy producers to sell directly to consumers.

Energy efficiency and climate policy are integral to the package. Uzbekistan plans to establish a National Energy Efficiency Agency and introduce incentives for solar power, heat pumps, and energy-efficient building retrofits. Public procurement processes will incorporate environmental criteria to support sustainable products and services.

According to a World Bank report released in July, Uzbekistan’s economy grew steadily between 2010 and 2022, with per capita GDP rising by an average of 4.2% a year, outpacing the regional average. However, the report noted that growth has relied heavily on capital investment rather than productivity gains, and that deeper reforms are needed to build a more competitive private sector.

17 Oct 2025

Kyrgyzstan, Environment, Kyrgyzstan Environment

Greening Campaign in Bishkek Targets Air Quality Improvement

October 17, 2025
By Sergey Kwan

A citywide greening campaign was launched in Bishkek on October 15, with plans to plant more than 10,000 tree and shrub saplings across the capital. The initiative is part of a broader effort to combat environmental degradation and improve air quality in one of Central Asia’s most polluted cities.

According to the Bishkek City Administration, priority will be given to areas surrounding educational institutions. The plan includes the creation of green zones around every school in the city.

The tree-planting campaign is designed to help reverse decades of urban deforestation, a consequence of rapid development that has significantly reduced Bishkek’s tree cover. Once regarded as one of the greenest cities in the former Soviet Union, Bishkek has lost much of its vegetation due to unchecked construction and infrastructure expansion.

Environmental experts have urged city planners to prioritize the planting of tall, broadleaf deciduous trees, valued for their shade and noise-reducing qualities, over coniferous species, which currently dominate urban landscaping.

The campaign aligns with Kyrgyzstan’s nationwide “Jashyl Muras” (“Green Heritage”) initiative, launched by President Sadyr Japarov in March 2022. The program aims to plant between five and six million saplings each year. In 2024, the Ministry of Natural Resources, Ecology and Technical Supervision reported that more than 8.1 million saplings were planted across the country.

Additional Measures to Reduce Pollution

On the same day, during a meeting of the Interdepartmental Commission for Improving Air Quality, Bishkek Mayor Aibek Junushaliev detailed other municipal efforts to reduce pollution. He noted that more than 1,500 diesel-powered minibuses have been removed from central city streets. The municipal transport fleet now consists of 1,449 environmentally friendly buses, 1,329 running on liquefied natural gas and 120 electric buses purchased in 2025.

According to the Ministry of Natural Resources, Ecology and Technical Supervision, motor vehicle emissions contribute approximately 30% of Bishkek’s air pollution.

Further efforts include the installation of a desulfurization system at the Bishkek Thermal Power Plant (TPP), which supplies heat and hot water to most of the capital. The plant’s emissions are estimated to account for around 15% of the city’s air pollution. The new system captures up to 96.6% of sulfur dioxide (SO₂) generated during coal combustion, marking a major step toward improving air quality in the city.

17 Oct 2025

Central Asia, Home, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Kyrgyzstan Home

Moody’s Assigns Kyrgyzstan First-Ever Positive Outlook

October 17, 2025
By Anton Chipegin

For the first time, international credit rating agency Moody’s has assigned Kyrgyzstan a positive outlook, while reaffirming the country’s sovereign credit rating at B3. According to the Ministry of Finance, the shift reflects Kyrgyzstan’s stable economic growth.

Finance Minister Almaz Baketaev met with Moody’s Managing Director David Aldrich on the eve of the announcement. Discussions covered areas of future cooperation, Kyrgyzstan’s investment profile, strategies for attracting external financing, and the country’s credit trajectory.

“Moody’s has revised its outlook on the Kyrgyz Republic’s sovereign credit rating from stable to positive, confirming the long-term rating at B3. The economy is demonstrating steady growth: real GDP for January to July 2025 rose by 11.5%,” the Ministry of Finance stated. “In May 2025, Kyrgyzstan successfully issued its first Eurobonds, raising $700 million. Investor demand exceeded supply threefold, with a five-year maturity and a 7.75% coupon rate.”

The ministry noted that all proceeds from the Eurobond issuance have been placed in a dedicated account to manage public debt responsibly.

Kyrgyzstan’s B3 rating has remained unchanged in recent years. While Moody’s upgraded the country’s outlook from negative to stable in 2024, this year marks the first time the outlook has been revised to positive.

The Ministry of Economy described the revised outlook as recognition of the government’s efforts to stabilize and grow the economy.

“The updated forecast reflects improvements in Kyrgyzstan’s macroeconomic and fiscal indicators, as well as stronger long-term development potential,” the ministry noted. “These results stem from key reforms, economic diversification, and sustained infrastructure investment.”

According to official figures, all sectors of the economy posted growth in the first half of 2025. Construction recorded the highest increase at 45% since the start of the year, while agriculture saw the most modest growth at 3.8%. Total GDP for the first six months of the year amounted to 711 billion soms.

17 Oct 2025

Central Asia, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Kazakhstan Home

Kazakhstan’s Cement Exports to Uzbekistan Plunge Amid Customs Dispute

October 17, 2025
By Sadokat Jalolova

Cement exports from Kazakhstan to Uzbekistan have fallen sharply in recent months, with industry officials blaming a sudden change in Uzbek customs policy. According to Yerbol Akimbayev, head of the Cement and Concrete Producers Association of Kazakhstan (QazCem), new customs rules imposed by Tashkent are significantly disrupting cross-border trade.

Speaking to Forbes Kazakhstan, Akimbayev said Uzbek authorities now require Kazakh cement imports to be declared at $300 per ton, ten times the actual sale price of roughly $30 per ton. “Taxes should reflect the real import price. Setting the customs declaration at $300 has made exports economically unfeasible,” he stated.

The new pricing rule comes at a difficult time for Kazakhstan’s cement industry, which is already grappling with overcapacity and shrinking export opportunities. The country currently operates 16 cement plants with a combined annual capacity of 18 million tons, while domestic demand has stagnated between 11.5 and 12 million tons over the past five years. Even with demand growing by 15-20% this year, roughly 2 million tons, production still far exceeds consumption.

“Operating plants can already produce 17 million tons, and our technical capacity is around 18.5 million tons,” Akimbayev explained. “With new facilities under construction, we could soon reach 22 million tons. That leaves us with about 6 million tons in excess capacity, exports are essential for industry viability.”

While Russia remains Kazakhstan’s top cement supplier, followed by Iran, Uzbekistan has become an increasingly important export market in recent years. However, Akimbayev argues that the recent policy shift undermines fair competition and could destabilize the regional cement market.

“This isn’t about competition, it’s about clear and objective rules,” he said. “Our producers meet strict quality and safety standards. It’s only fair that importers face similar conditions. When we addressed this imbalance in 2019, the number of import certificates issued dropped by 95%, exposing the scale of shadow trade.”

The impact is already being felt across Kazakhstan’s cement sector. A plant in the Kostanay region declared bankruptcy earlier this year, and another in the Akmola region is facing financial strain. At the same time, three new factories are under construction, adding further pressure to an oversupplied market.

“Foreign investment is welcome, but it should target sectors that align with the country’s actual needs, like data centers or airports, not industries already in crisis,” Akimbayev warned.

Industry leaders in Kazakhstan are urging both governments to resolve the dispute and reestablish stable trade conditions for cement exports.

17 Oct 2025

Home, Uzbekistan Environment, Environment, Kazakhstan Environment, Kyrgyzstan Environment, Uzbekistan, Uzbekistan Features, Kyrgyzstan, Kazakhstan, Features, Kazakhstan Featurees

Kazakhstan Urges Regional Cooperation to Save the Aral Sea

October 17, 2025
By Aliya Haidar

Kazakhstan has intensified its efforts to restore its portion of the former Aral Sea, calling on neighboring Central Asian states to increase their participation in regional environmental cooperation. Once the world’s fourth-largest lake, the Aral Sea has become a symbol of ecological catastrophe. Experts warn that international efforts remain inadequate.

How the Sea Died

Straddling the border between Kazakhstan and Uzbekistan, the Aral Sea began to shrink in the 1960s when large-scale irrigation projects diverted water from its two main tributaries, the Amu Darya and Syr Darya rivers, to support cotton production and agriculture. A growing regional population added further strain.

By 1989, the sea had split into the Northern (Small) and Southern (Large) Aral Seas. In 2014, the eastern basin of the Southern Aral Sea dried up completely. Today, the Aralkum Desert occupies much of what was once open water. Kazakhstan has since focused on restoring the Northern Aral Sea.

A ship stranded in the desert, Moynaq, Uzbekistan; image: TCA, Stephen M. Bland

The restoration of the Northern Aral Sea has already yielded visible environmental and social benefits. Rising water levels have lowered salinity, allowing several native fish species to return. Local fisheries, once thought lost, are now active again in communities such as Aralsk. According to the Ministry of Ecology, the annual fish catch in the North Aral has risen more than tenfold since the early 2000s, reviving local employment and boosting food security. Experts note that even small ecological gains have had a profound psychological impact on residents who once witnessed the sea’s disappearance.

Call for Renewed Efforts

On October 15, Kazakhstan called for expanded international cooperation to protect both the Aral and Caspian Seas. First Deputy Minister of Foreign Affairs, Yerzhan Ashikbayev, speaking at the International Astana Think Tank Forum-2025, emphasized Kazakhstan’s contribution to the global climate agenda. He noted that a regional climate summit, set to be held in Astana in 2026, would provide a platform for coordinated strategies and joint decision-making among Central Asian nations.

“Astana also calls for increased international participation in solving environmental problems and preserving the water resources of the Aral and Caspian Seas,” Ashikbayev said.

Earlier, on October 10, Prime Minister Olzhas Bektenov met with senior officials from Tajikistan, Uzbekistan, and Turkmenistan during the second meeting of the Board of the International Fund for Saving the Aral Sea (IFAS), chaired by Kazakhstan. The event highlighted the need for a united regional approach, noting that restoration of the Aral Sea can be achieved through collective action.

Bektenov acknowledged the challenges of the recent growing season, but said regional cooperation had helped maintain a stable water regime in the basin.

“Each country has its own national interests, and we are obliged to defend them and will always do so. But I am convinced that our common strategic, long-term priority is good neighborly relations. In solving everyday short-term tasks, we must not undermine long-term priorities. I think that we will take joint measures to ensure that issues are always resolved on a mutually acceptable and mutually beneficial basis,” he said.

The International Fund for Saving the Aral Sea (IFAS), created in 1993 by the five Central Asian states, is the main framework for joint management of transboundary water resources. Although the fund has facilitated dialogue, it has struggled to overcome divergent national interests. Upstream, Kyrgyzstan and Tajikistan focus on hydropower, while downstream states rely on irrigation. Under Kazakhstan’s current chairmanship, IFAS is aiming to modernize its work through digital data-sharing and basin-wide monitoring systems designed to improve transparency and trust.

Kazakhstan’s chairmanship of IFAS has prioritized digital transformation and the use of artificial intelligence in water management. Bektenov said these tools will enhance transparency, reduce losses, and improve efficiency. A unified automated system for monitoring and distributing water across the Aral Sea basin is under development.

Expert Opinion: “Only Kazakhstan Is Saving the Aral Sea”

According to the political analyst, Marat Shibutov, Kazakhstan is largely acting alone in efforts to revive the Aral Sea. Writing on social media, he pointed to what he described as a “subtle hint to Kyrgyzstan” in Bektenov’s remarks about giving precedence to long-term goals.

“Right now, Kazakhstan is saving the Aral Sea on its own, both the Small Aral and the Syr Darya delta. We took out a World Bank loan for this, and are paying it back,” Shibutov wrote.

Shibutov warned that downstream efforts are futile without cooperation from upstream countries. “If they don’t release water from the upper reaches, nothing will work. Hence, the appeal to stop hoarding water in reservoirs or discharging it into Arnasai, where capacity is limited. Kazakhstan needs help,” he emphasized.

Climate change further complicates water management in the Aral basin. Rising temperatures and shifting precipitation patterns threaten to reduce the flow of the Syr Darya and Amu Darya rivers, increasing pressure on already scarce water resources. Frequent droughts and heatwaves worsen evaporation losses, while dust storms from the dried seabed carry salt and pollutants across the region. Kazakhstan frames its Aral Sea initiatives within a broader climate agenda, emphasizing that local restoration supports global adaptation and resilience goals.

A dust storm over the Aral Sea; image: ISS/NASA

Kazakhstan’s Restoration Efforts

Kazakhstan has made the Northern Aral Sea a centerpiece of its environmental revival strategy. The Northern Aral Sea now covers 3,065 square kilometers, an increase of 111 square kilometers since early 2022, according to the Ministry of Water Resources and Irrigation. Key projects include the preservation of the Kokaral Dam and the restoration of the Syr Darya River delta.

Recent infrastructure work includes the reconstruction of dams between Lake Karashalan and the Syr Darya, the construction of the Tauir protective dam, and the rehabilitation of the Karashalan-1 canal. The Kokaral Dam, which separates the Northern and Southern Aral Seas, is also nearing full restoration. These initiatives aim to preserve the Northern Aral Sea and reduce salinity.

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

Kazakhstan is also focused on reforestation of the former seabed to improve the regional climate. From 2021 to 2024, afforestation was carried out on 475,000 hectares, with another 428,000 hectares scheduled for 2025.

Across the border, Uzbekistan has pursued more limited measures in the Southern Aral basin. The government has promoted the “Aral Sea Region” as a zone of environmental innovation under UN auspices, focusing on green energy, sustainable agriculture, and afforestation of the dry seabed. However, these projects mainly address socio-economic development rather than hydrological restoration, as the southern basin remains largely beyond recovery under current water conditions.

In the Kazakh port town of Aralsk, the effects of restoration are tangible. Residents once left stranded by the retreating shoreline now see water returning within sight of the town. Small fishing boats have reappeared, and families who had migrated in search of work are beginning to return. “We lost the sea once, but now we have hope again,” said one local fisherman in a recent television interview. Still, locals know that the revival remains fragile, dependent on continued cooperation and careful management across borders.