Digitalization - The Times Of Central Asia

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Kazakhstan Pushes Nationwide AI Rollout Amid Cybersecurity Risks and Skills Shortages

Kazakhstan is preparing to deploy artificial intelligence (AI) on a large scale across the economy, government, and education. However, experts warn that without transparency, constant auditing, and stronger oversight, the program risks falling short of its goals. Slow Progress and Security Risks A meeting on AI development was held in Astana on August 11, attended by President Kassym-Jomart Tokayev, Prime Minister Olzhas Bektenov, and senior government officials. According to Tokayev, Kazakhstan’s main objective is to become a digital hub in Eurasia, but sluggish implementation, weak control mechanisms, and a shortage of qualified personnel are stymying progress. “I have already spoken about accelerating the creation of a unified national digital ecosystem," Tokayev said. "I have instructed that the necessary infrastructure be prepared, a legislative framework and data collection system be developed, and work begin on the introduction of artificial intelligence. However, the progress in implementing these instructions is unsatisfactory.” Cybersecurity is the priority, as current systems remain highly vulnerable. Since the start of the year, more than 40 major data breaches have occurred. The largest incident, in June, leaked 16.3 million records containing the personal data of Kazakh citizens, out of a population of 20 million, into the public domain. This was confirmed by Olzhas Satiev, president of the Center for Analysis and Investigation of Cyber Attacks (CARCA). By the end of the year, AI is set to be incorporated into e-government and Smart City projects, with a particular emphasis on the AI-Sana program, which aims to develop human capital and transform universities into research centers. The government is also responsible for introducing AI into state agencies and national companies, as well as drafting new legislation regulating AI. There are also plans to migrate all state and quasi-state digital systems onto a single sovereign platform. The national digital platform, QazTech, entered into commercial operation in July. Partnerships With China Kazakhstan intends to work closely with China on new digital products. Tokayev has pointed to China’s DeepSeek platform, developed for $6.5 million, far below the cost of Western equivalents, as an example to learn from. In February 2025, the National Academy of Sciences signed a memorandum with Zhejiang University of Technology, establishing an International Joint Laboratory for Spatio-Temporal Artificial Intelligence and Sustainable Development. The lab will focus on energy and climatology projects. In August, Tokayev expressed support for China’s proposal to create a World Organization for AI Development. Concerns Over Oversight and Staffing Independent analysts believe Kazakhstan has the potential to integrate AI into many aspects of daily life, given its relatively high level of digitalization. However, they warn of the risk of large sums being wasted on ineffective projects. Economist Rassul Rysmambetov has called for a full audit of more than a thousand large state IT systems to identify ineffective platforms. He also highlighted the shortage of skilled personnel: “There is too much technology, but not enough staff. Investments and start-ups sound like good slogans, but where are the professionals? I have often seen IT specialists forced into other jobs due to...

Digital Technologies

Silicon Steppes: Can Kazakhstan Become Eurasia’s Next Digital Nexus?

At this month’s Eurasian Economic Forum in Minsk, Kazakh President Kassym-Jomart Tokayev urged fellow Eurasian Economic Union (EAEU) leaders to reorient toward the future. “Digitalization and artificial intelligence… should become an absolute priority of the EAEU,” he told the plenary session, warning that “we are already living in the era of AI.” Tokayev cited forecasts that AI could contribute $15 trillion to global GDP and displace 300 million jobs by 2030, arguing the EAEU bloc has a “historic opportunity” to act now. “It is important to use this window of opportunity in a timely manner… to strengthen our role in the emerging digital world order,” he stated. “A small group of countries will emerge as leaders in this field… others may be left behind. The EAEU must lead — or, at the very least, avoid lagging behind.” Tokayev’s remarks capped a speech outlining Kazakhstan’s sweeping digital agenda, which includes a national supercomputer, a high-profile artificial intelligence hub, and a “CryptoCity” pilot zone. These efforts signal not only a pivot away from extractive industries but a push to establish Kazakhstan as the heart of Central Asia’s digital and data infrastructure. Once seen as an economic hindrance, Kazakhstan’s landlocked geography is now being leveraged as a potential asset. A 3,700 km West–East Fiber-Optic Highway is under construction, connecting China’s Xinjiang province to the Caspian Sea. The project, expected to be completed in 2026, aims to provide a secure, high-speed terrestrial route for global data flows between Europe and East Asia. By pairing this with expanded redundancy and data center capacity, Kazakhstan hopes to serve as a neutral, cost-effective host for hyperscale data centers supporting global cloud providers and sovereign clients alike. With abundant energy, political stability, and growing fiber capacity, officials argue Kazakhstan can reduce regional dependence on submarine cables routed through politically sensitive chokepoints. Kazakhstan’s infrastructure investments are central to Tokayev’s vision. In Astana, the futuristic Nur Alem sphere — originally built to host the 2017 World Expo — is being converted into Alem.AI, an international artificial intelligence center focused on education, research, and applied technology. The facility will host labs, training academies, and co-working space for startups, to produce 10,000 AI specialists per year and generate $5 billion in AI-driven exports by 2029. Complementing this is the new national AI supercomputer, developed in partnership with UAE-based Presight AI. Launched in May 2025, the system is rated at up to 2 exaflops, powered by NVIDIA H200 chips, and installed within a Tier III-certified data center. Government officials say it will be used for machine learning, scientific modeling, LLM development, and cybersecurity testing, and will eventually be made available to Kazakh universities and private sector firms. Meanwhile, the CryptoCity pilot zone near Alatau will allow the regulated use of cryptocurrencies in daily life, from shopping to property purchases, within a restricted environment. It is being developed under the supervision of Kazakhstan’s Ministry of Digital Development and Samruk-Kazyna, the country’s sovereign wealth fund. Though crypto transactions currently remain largely banned in the country,...

UN Public Service Forum

Uzbekistan Showcases Digital Achievements, Calls for Global Cooperation at UN Public Service Forum

From June 23 to 25, Uzbekistan hosted the 2025 United Nations Public Service Forum (UNPSF) in Samarkand, welcoming over 1,000 delegates, including government officials, international experts, and representatives of global organizations. Under the theme “Five Years Until 2030: Accelerating Public Service Delivery for a Sustainable Future,” the forum emphasized the pivotal role of digital governance in advancing the UN Sustainable Development Goals. Speaking at the opening ceremony, Minister of Digital Technologies Sherzod Shermatov described digitalization as a transformative shift in state-society relations. “Digitization is not merely about introducing new technologies. It is a new format of relations between the state and the people, based on trust, transparency, and mutual understanding,” he said. Uzbekistan’s digital advancements were a central focus. In 2024, the country entered the “very high” category of the UN E-Government Development Index (EGDI) and joined the top “A” group in the GovTech Maturity Index, rising 37 positions. In a message delivered by Saida Mirziyoyeva, head of the Presidential Administration, President Shavkat Mirziyoyev highlighted that Uzbekistan had also climbed 24 spots in the EGDI and 17 in the International AI Readiness Index over the past year. The national e-government portal, my.gov.uz, now provides more than 760 electronic services and serves over 11 million registered users. The integrated “Digital Government” platform connects 49 state agencies and over 216 information systems. To ensure accessibility, 208 public service centers across the country assist citizens without internet access. Opening the forum on behalf of the president, Saida Mirziyoyeva stressed the pace of Uzbekistan’s reforms and the importance of inclusive governance. “The world is changing rapidly, and we in Uzbekistan are responding with active reforms,” she said, noting that women now comprise over 35% of civil servants. She also underscored the importance of youth participation and global partnerships, thanking institutions such as the Global Knowledge Center. In his written address, President Mirziyoyev emphasized ongoing efforts to modernize public service through legislative and structural reforms. These include the adoption of a new civil service law in 2022, expanded social support programs, and the implementation of the mahallabay neighborhood-level service system. “We now deliver more than 700 public services online through a single-window platform,” he noted. One of the forum’s key outcomes was the adoption of the Samarkand Ministerial Declaration, a roadmap for enhancing global public service delivery through inclusive, transparent, and technology-driven governance. The declaration calls for deeper international cooperation and knowledge-sharing in GovTech, artificial intelligence, and public sector innovation. Forum sessions addressed a broad spectrum of issues, including digital inclusion, AI governance, innovation labs, and outreach to underserved populations. Delegates exchanged best practices and pledged to strengthen international partnerships to ensure equitable access to services worldwide. For Uzbekistan, hosting UNPSF 2025 underscored both its rapid digital transformation and its role as an emerging leader in global digital governance. With tangible improvements in global indices and expanding access to public services, the country presented itself as a model of reform and a committed partner in advancing sustainable development.

QR Code

Kyrgyzstan to Introduce Mandatory QR Code Tax Payments

Beginning July 1, 2025, all taxes and insurance contributions in Kyrgyzstan must be paid exclusively using a unique payment code or QR code. The change was announced by the press service of the State Tax Service (GNS) of the Kyrgyz Republic. The new system will apply to taxes, non-tax revenues, and mandatory insurance contributions. Taxpayers will be able to generate a QR code through their account on the State Tax Service website or via a dedicated mobile application. Alternatively, QR codes can be obtained at Business Service Centers or local tax offices. Mirlan Rakhmanov, Deputy Chairman of the State Tax Service, emphasized that the shift to QR code payments is designed to enhance transparency and streamline the payment process. “Payment via QR code enables real-time crediting of funds to the state budget, eliminates manual entry errors at banks, accelerates service delivery, and reduces the need for queuing,” Rakhmanov stated. Banking sector representatives who attended consultations with tax officials expressed readiness to support the transition. The State Tax Service confirmed that banks are technically equipped to implement the new system without disruptions. The announcement comes as part of a broader package of reforms aimed at modernizing tax administration. The agency reported that it has intensified analytical efforts to combat tax evasion, particularly schemes involving the artificial fragmentation of businesses to qualify for tax benefits intended for small enterprises. “The State Tax Service possesses the digital tools necessary to monitor economic activity, including through data-sharing arrangements with other government agencies,” the statement added.

Digitalization

The Next Steps for Central Asian Finance: Interview with Azerbaijani Fintech Leader Dr. Fuad Karimov

This week The Times of Central Asia will be attending the CAMCA Regional Forum, which this year is being held in Ulaanbaatar, Mongolia. The CAMCA network is a collection of professionals and policymakers dedicated to sharing ideas, knowledge and inspiration to accelerate the development of the Eurasia region; its name stands for Central Asia, Mongolia, the Caucasus and Afghanistan. Ahead of the Forum, The Times of Central Asia spoke with Dr. Fuad Karimov, Regional Managing Director of the payment software company Xsolla, about what the CAMCA program means for the Eurasian finance industry, and how Azerbaijan can work more closely with Central Asia. TCA: What condition do you feel fintech spaces are currently in, particularly in the Eurasia region? FK: Fintech [financial technology] across the CAMCA region is accelerating. Countries like Kazakhstan and Uzbekistan have made significant progress in regulation and adoption. In Azerbaijan, key drivers include state-led digitalization and innovative companies like PashaPay and Birbank, which are transforming consumer payment behavior. Cross-border transfers, mobile banking, and contactless solutions are increasingly common across the region. In what areas do you think CAMCA initiatives can help them improve? CAMCA can create platforms to harmonize financial regulations, facilitate cross-border fintech testing, and promote knowledge exchange. It can also help reduce friction in currency conversion. Regional collaboration can attract investors from the West and Asia. Priorities should include cybersecurity, financial literacy, AI in finance, and coordinated exploration of digital currency pilots like e-Manat, e-Tenge, and e-Soum. You're moderating a session on harnessing fintech in CAMCA markets. What topics do you expect to touch upon, and who are you looking forward to hearing from? We’ll cover the rise of digital national currencies (CBDCs), crypto regulation, exchange rate risk, and the impact of AI on lending, compliance, and fraud prevention. I’m especially looking forward to hearing from fintech leaders in the CAMCA region — each representing diverse policy environments and innovation models. Where do you see opportunities for Central Asia to work more closely with Azerbaijan? There’s strong potential in co-developing cross-border payment systems, digital identity frameworks, and startup accelerators. Azerbaijan can share experience in building public-private fintech partnerships, while Central Asia offers scale and growing demand. Aligning exchange rate mechanisms, regulatory approaches, and education systems will enhance regional integration. The CAMCA platform is an ideal space to turn these synergies into actionable policy and investment opportunities.

Digitalization

Central Asian and Pakistani Leaders Showcase Digital Future at GSMA Summit in Tashkent

The second day of the GSMA M360 Eurasia conference, held on May 21 in Tashkent, delivered a resounding message of partnership, innovation, and forward-looking digital strategies. Leaders from Kazakhstan, Uzbekistan, and Tajikistan, alongside delegates from other countries, shared insights on fostering resilient digital economies through collaboration and technology. Kazakhstan: Digital Leadership and AI Strategy Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev, highlighted his country’s digital advancements. Over the past decade, Kazakhstan has ascended into the global top ten for online service quality and now ranks 24th in e-government development. “More than 90% of transactions are cashless,” he noted, “and over 35 personal documents are exclusively digital. Digital documents now carry the same legal weight as paper ones.” Citizens can even travel domestically using only a digital ID on their phones. Madiyev spotlighted Astana Hub, Kazakhstan’s primary IT cluster, which hosts over 1,600 startups and global tech firms, with outposts in Silicon Valley, Singapore, Saudi Arabia, and the UK. “We recently signed an agreement with Uzbekistan’s IT Park,” he said, “and we will soon open a joint mobile lab with Tcell in Uzbekistan.” He emphasized that cross-border collaboration enables startups to access global markets. Artificial intelligence (AI) featured prominently in Madiyev’s address. He announced the formation of a national AI committee and the adoption of a five-year strategy that includes ethical guidelines, product labeling, and a public AI platform. A newly acquired supercomputer, boasting two exaflops of processing power, will soon support universities, startups, and companies. Kazakhstan also plans to train one million individuals over five years, spanning schoolchildren to government employees. Madiyev invited Uzbekistan to join a regional AI collaboration centered around the forthcoming International Center of AI in Astana, which will host labs, exhibits, hackathons, and workspaces for startups and major tech firms. Uzbekistan: Building a 5G Future In an interview with The Times of Central Asia, Dmitriy Shukov, CEO of Perfectum, the first stand-alone 5G mobile network operator in Uzbekistan, discussed the company’s vision. Perfectum primarily serves the business sector with advanced network solutions. “We focus on B2B clients and will continue to develop cutting-edge services for a fast-growing economy,” Shukov stated. On expanding 5G access nationwide, Shukov pointed to device compatibility. “People need access to 5G stand-alone service. We hope GSMA can facilitate discussions with handset manufacturers to unlock all 5G features here,” he said, underscoring that broader access is essential for digital inclusivity. Perfectum’s pioneering role in the region sets a benchmark for others. Discussing Uzbekistan’s telecom infrastructure, Shukov expressed optimism. “Our population grows by 700,000 annually. Sixty percent are under 30, demanding high-speed, low-latency services. And the regulatory environment is now very favorable to investors,” he said. These dynamics, he concluded, set a strong foundation for the next three years. Tajikistan: Rethinking Telecom Models Tcell CEO Ozodkhon Davlatshoev, whose company serves over two million customers and is Tajikistan’s largest mobile operator, addressed the pressures facing the sector. “Our market share is about 14%, growing 7% annually, but with just 2% population...