Economic Cooperation - The Times Of Central Asia

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Economic Cooperation

UK and Kyrgyzstan Expand Financial Cooperation

The Kyrgyz Republic Capital Markets Day was held in London, where representatives of the UK financial and investment community met with Kyrgyz officials to discuss prospects for expanding banking and investment cooperation. The Kyrgyz delegation was led by Deputy Minister of Economy and Commerce Mederbek Tumanov. During his working visit to London, Tumanov held meetings with representatives of the investment banks Oppenheimer and Citi, presenting Kyrgyzstan’s macroeconomic indicators for recent years and outlining the country’s fiscal policy and structural reforms. According to the Ministry of Economy and Commerce, Kyrgyzstan aims to improve its sovereign credit rating, which would facilitate the country’s access to international capital markets. During the discussions, particular attention was given to creating a predictable regulatory environment for investors. The Kyrgyz government also seeks to reduce the cost of external borrowing and strengthen the confidence of international investors. During the visit, the Kyrgyz delegation met with business representatives, including DG and Bankinvest, to discuss opportunities for attracting British private capital to key sectors of the Kyrgyz economy. According to the Kyrgyz Ministry of Economy, the British delegates expressed interest in expanding investment cooperation. Tumanov also participated in a meeting of the Kyrgyz-British Business Council, where participants discussed prospects for bilateral investment and the promotion of Kyrgyzstan’s economic priorities in the British market. During the event, the Kyrgyz representatives presented a number of potential investment projects to British investors, including initiatives related to the development of critical minerals, financial market development, and closer banking cooperation. According to Kyrgyz authorities, the interest shown by British businesses reflects growing international investor attention to Kyrgyzstan and the wider Central Asian region.

Afghanistan

Three Main Principles of Kazakhstan’s Afghan Policy

August 15, 2026 will mark five years since the Taliban came to power in Afghanistan. This substantial period can be assessed in different ways, particularly given the widespread skepticism at the outset regarding the Taliban’s ability to govern effectively and build relations with other countries. The situation in Afghanistan remains complex and multifaceted, with diverging trends. On the one hand, the current Afghan leadership faces a wide range of internal challenges, primarily socio-economic. After the Taliban’s return to power, humanitarian assistance declined sharply. For many years, two-thirds of Afghanistan’s budget had been financed through foreign aid, and its reduction has significantly affected the social conditions of ordinary Afghans. According to the United Nations, only one-third of the $2.4 billion humanitarian response plan required for 2025 has been funded. Over 21 million Afghans require humanitarian assistance. The economic situation has been further complicated by the deteriorating humanitarian environment, largely due to the deportation of millions of Afghan refugees from Iran and Pakistan this year. In total, around 4.5 million Afghans have returned since 2023, primarily through deportations from Iran and Pakistan, resulting in a 10% population increase. Other pressing social issues remain. Several countries continue to focus on security and terrorist threats, as well as government inclusiveness and the rights of women and girls, particularly their access to employment and education. At the same time, nearly five years into Taliban rule, the anticipated “economic and political collapse” has not materialized. The national budget is gradually increasing, and small and medium-sized enterprises are emerging. Industrial parks aimed at developing domestic production have appeared in major cities such as Kabul, Mazar-i-Sharif, and Herat. Since 2023, relative macroeconomic stabilization has been observed, although growth rates remain insufficient to offset demographic pressures and reduce poverty. The World Bank forecasts Afghanistan’s gross domestic product (GDP) growth at 4.3% in 2025, with inflation projected to remain low at approximately 2%. According to the United Nations, the area under opium poppy cultivation has declined by 95% during the years of Taliban rule. At the same time, synthetic drug production has reportedly increased, reflecting trends observed in many other countries. Politically, the Taliban maintains consolidated control over most of the country. In other words, a more stable, albeit fragile, reality has emerged, one that Central Asian countries must engage with on a daily basis. Kazakhstan has adopted a pragmatic approach. Its policy toward Afghanistan is based on a model of “pragmatic engagement without recognition,” while developing an independent system of transport, energy, and humanitarian ties with the country. Kazakhstan’s decision to remove the Taliban from its list of banned organizations does not signify a departure from international law nor does it constitute automatic recognition of the current Afghan authorities. On the issue of formal recognition, Kazakhstan relies on decisions of the UN Security Council. From a foreign policy perspective, this step forms part of a broader strategy: Kazakhstan is adapting its instruments to a changed reality while remaining within international norms and avoiding symbolic gestures that could be interpreted as...

Economic Cooperation

Tokayev’s U.S. Visit Advances Kazakhstan’s Economic Agenda

The visit of Kazakh President Kassym-Jomart Tokayev to the United States provided an opportunity for targeted negotiations with major international corporations and financial institutions, centered on long-term investment, production localization, and Kazakhstan’s integration into global value chains. One of the key outcomes was the signing of an investment agreement worth approximately $180 million between Kazakhstan’s Ministry of Agriculture and Mars, Incorporated. The company plans to build a pet food production plant in the city of Alatau. The project will focus on the deep processing of agricultural raw materials and the production of high-value-added goods. Mars CEO Poul Weihrauch noted that the Kazakhstan facility will serve as a base for expanding the company’s presence in Central Asia and neighboring regions. A separate round of negotiations focused on healthcare. During talks with Ashmore Group, discussions centered on a proposal to build an international clinic in partnership with Ashmore Healthcare International and Samruk-Kazyna Invest, with the involvement of the Mount Sinai Health System as the operator. The initiative aligns with Kazakhstan’s strategy to develop medical infrastructure and medical tourism, as well as the Open Investment Partnership program targeting high-tech sectors of the economy. Aviation was another major component of the visit. At a meeting with Boeing executives, Tokayev confirmed the interest of Kazakh carriers Air Astana, SCAT Airlines, and VietJet Qazaqstan in expanding cooperation. Air Astana expects to receive Boeing 787 Dreamliner aircraft in the second half of 2026, which could pave the way for the launch of direct flights between Kazakhstan and the U.S. SCAT, meanwhile, is considering both the acquisition of additional aircraft and the establishment of its first maintenance and repair center at Shymkent Airport in partnership with an American company. The visit concluded with negotiations involving the U.S. International Development Finance Corporation (DFC). Its CEO, Ben Black, said Washington views Kazakhstan as a key partner in Eurasia. The discussions focused on projects in the mining sector and the development of transport and transit infrastructure critical for regional and interregional trade. According to the World Investment Report 2025 (UNCTAD), Kazakhstan overwhelmingly dominates foreign direct investment (FDI) in Central Asia. In 2024, Kazakhstan’s inward FDI stock stood at about $151 billion, far exceeding Turkmenistan (about $45 billion), Uzbekistan (about $17 billion), and Kyrgyzstan and Tajikistan (around $4 billion each). The negotiations in Washington point to Kazakhstan’s focus on building long-term institutional partnerships rather than pursuing isolated investment deals, a signal intended to reassure international investors about the stability and openness of the market. As previously reported by The Times of Central Asia, Tokayev also took part in the inaugural meeting of the Board of Peace in Washington, where Kazakhstan signaled its willingness to contribute to Gaza’s reconstruction and broader stabilization efforts, including potential financial support and participation in peacekeeping initiatives.

Afghanistan

Coordination Instead of Declarations: Astana Hosts Meeting of Regional Contact Group on Afghanistan

On Monday, Astana hosted an extraordinary meeting of the Regional Contact Group of Special Representatives of Central Asian Countries on Afghanistan, with delegations from Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan in attendance. The agenda focused on trade and economic cooperation with Afghanistan, including joint projects, investment protection, transit tariff policy, and the development of transport corridors through Afghan territory. The establishment of the group represents the practical implementation of agreements reached at the Sixth Consultative Meeting of the Heads of State of Central Asia, held in Astana in August 2024, and reflected in the Roadmap for Regional Cooperation for 2025-2027. The first meeting of the Contact Group took place on August 26 last year in Tashkent. As noted by Erkin Tukumov, Special Representative of the President of Kazakhstan for Afghanistan, Astana is interested in a constructive exchange of views and in identifying practical solutions to pressing issues of cooperation with Afghanistan. In recent years, Kazakhstan has consistently kept Afghanistan among its foreign policy priorities, avoiding rhetorical declarations in favor of a measured and systematic approach. President Kassym-Jomart Tokayev has paid particular attention to Afghanistan since the change of power in Kabul in 2021. In the first weeks after the Taliban assumed control, Astana began articulating its position on international platforms. One of the key statements was Tokayev’s address at the Shanghai Cooperation Organisation summit in Dushanbe on September 17, 2021. He advanced a thesis that has since been reiterated in various formats: Afghanistan should be viewed not only as a source of risk but also as a potential driver of regional development, provided that stability and economic recovery are achieved. This position was further elaborated days later at the United Nations General Assembly. At that time, Kazakhstan was among the first to emphasize the need for inclusiveness in Afghanistan’s future political system, not as an abstract requirement, but as a practical condition for stability. Another significant step was the creation last year of the post of Special Representative of the President for Afghanistan, to which Tukumov was appointed. This role goes beyond that of an interdepartmental coordinator: as a direct representative of the head of state, it elevates the Afghan portfolio to the level of strategic priority. The establishment of such a position signals a transition from a situational response to a more systematic policy. The Astana meeting confirmed the intention of regional countries to deepen cooperation through a regular platform capable of coordinating actions and presenting them externally in a consolidated manner. Some external observers suggest that Central Asian countries are only now beginning to develop a common position on Afghanistan. However, that position has largely taken shape in recent years. The current task is not to formulate it, but to coordinate it more precisely. The meeting in Astana demonstrated that, for Central Asian countries, the primary concern is not the nature of the regime in Kabul, but Afghanistan’s capacity to function as a predictable economic partner and responsible participant in international relations. For the region, it is essential that...

Mirziyoyev in Turkey

Uzbekistan and Turkey Set $5 Billion Trade Target at Strategic Council Meeting in Ankara

At the invitation of Turkish President Recep Tayyip Erdoğan, President of Uzbekistan Shavkat Mirziyoyev paid an official visit to Turkey on January 29, marking a new phase in the deepening partnership between the two nations. The visit was centered around the fourth meeting of the High-Level Strategic Cooperation Council, co-chaired by the two leaders in Ankara. Discussions focused on strengthening the comprehensive strategic partnership between Uzbekistan and Turkey, with an emphasis on political dialogue, trade and economic cooperation, transport connectivity, and cultural and humanitarian exchanges. The two presidents also exchanged views on regional and global developments, underscoring the growing coordination between Tashkent and Ankara on international platforms. Both sides highlighted the steady growth in bilateral trade, the rising number of joint ventures, and increased direct flights between the two countries. Regular cultural exchanges and growing people-to-people contacts were cited as further evidence of the strengthening relationship. Key areas for future cooperation include joint projects in industry, agriculture, and social protection, as well as enhanced collaboration in defense, security, and combating cybercrime. The timing of the Strategic Council meeting was described as symbolic, taking place on the eve of Ramadan and ahead of the 30th anniversary of the Treaty on Eternal Friendship and Cooperation between Uzbekistan and Turkey. The two sides expressed satisfaction with the growing political dialogue and the convergence of their positions on many international issues. The presidents reaffirmed their commitment to mutual support in international and regional organizations, including the United Nations, the Organization of Turkic States, the Organization of Islamic Cooperation, and the Economic Cooperation Organization. Inter-parliamentary cooperation has also intensified, particularly through parliamentary friendship groups. The leaders set an ambitious goal to increase bilateral trade turnover to $5 billion in the coming years. Expanding the list of goods covered under the Preferential Trade Agreement will be a key step toward achieving that target. Ahead of the visit, new priority areas for industrial cooperation were identified and will be implemented under a separate program. Significant potential was noted for interregional cooperation, with delegations from all regions of Uzbekistan expected to visit Türkiye by the end of the year to develop joint projects. Cooperation will also be deepened in agriculture, horticulture, healthcare, and medical tourism. The two countries agreed to intensify cultural and tourism ties through joint initiatives such as theater festivals, cultural weeks, historical film productions, and heritage restoration projects. In the education sector, the fourth Rectors’ Forum will be held in Bukhara this spring. Following the Strategic Council meeting, Mirziyoyev and Erdoğan signed a Joint Statement and adopted a framework for cooperation within the comprehensive strategic partnership. A wide-ranging package of bilateral agreements was also signed, covering healthcare, education, military medicine, economic and financial cooperation, mining, transport corridors, special economic zones, nuclear safety, migration, religious affairs, foreign ministry cooperation for 2026-2027, light industry, and cultural collaboration. At the conclusion of the visit, Mirziyoyev extended an official invitation to Erdoğan to visit Uzbekistan, reflecting the continued momentum and growing trust in bilateral relations.

Official Visit

Kazakhstan and Israel Deepen Cooperation in Astana

Israeli Foreign Minister Gideon Sa’ar’s official visit to Astana on January 27, 2026, was the first by an Israeli foreign minister to Kazakhstan in 16 years, and it yielded a package of institutional and economic steps. President Kassym-Jomart Tokayev received Sa’ar and Foreign Minister Yermek Kosherbayev, holding talks that both sides framed as elevating cooperation to a new level. The two foreign ministries signed documents on diplomatic training and public diplomacy, and agreed to pursue visa-free travel for holders of ordinary passports. A Kazakhstan–Israel business forum convened in parallel, with January–November 2025 trade of about US$162.4 million cited as the baseline for expansion. The visit’s value lay in its forward-looking measures to deepen cooperation. The sides agreed to convene the Kazakhstan–Israel Joint Economic Commission at a ministerial level. This move creates a regular venue where sector priorities can be translated into specific workstreams. The Kazakhstan–Israel business forum was framed as the practical feeder for that process, as both sides publicly identified a project map running from high-tech agriculture and water-resource management through digital technologies (including artificial intelligence) to infrastructure and logistics, energy efficiency and renewables, and healthcare and pharmaceuticals. In parallel, the two foreign ministries’ political consultations, in their twelfth round, covered wider international and regional agendas, including Middle East confidence-building and peaceful-settlement initiatives. Regularizing Cooperation Channels The documents signed in Astana were narrow-gauge instruments designed to regularize contacts. The memorandum on diplomatic training provides for structured interaction in the preparation of diplomatic personnel. What this means in practice is that exchanges between the two foreign-policy services will be routinized through their training institutions rather than on an ad hoc basis. The memorandum on public diplomacy set a framework for coordinated outreach, providing an agreed approach to presenting their cooperation. Taken together, these instruments are the administrative layer that will operationalize joint political intent. The visa initiative was narrowly framed as a statement of intent to conclude a visa-exemption agreement for holders of ordinary passports, not as an agreement already in force. In practice, such a regime would lead to higher tourism flows and denser business travel. The latter development would widen the base of commercial contacts, which could in turn be carried into ministerial-level economic follow-up. The visa track is thus an enabling measure for the economic agenda. At the leadership level, Sa’ar publicly invited President Tokayev to visit Israel. This move signals an intent to sustain momentum beyond merely ministerial channels. The visit coincided with International Holocaust Remembrance Day in Kazakhstan, and Sa’ar participated in a state ceremony in Astana connected to the commemoration. The ceremony included senior officials and diplomatic representatives, with official messaging from Tokayev to Israel’s president on the occasion. The civic and humanitarian nature of this event complemented a visit that otherwise concentrated on governance mechanisms, economic priorities, and institutionalizing diplomatic follow-through. First Steps Toward Joint Projects Beyond merely listing priority sectors, the business forum also surfaced first-step commercial and quasi-commercial documents providing a basis for follow-through. Kazakhstan’s investment agency reported three signed items:...