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British Company to Produce Flexible Concrete Material in Kyrgyzstan

The government of Kyrgyzstan and British company Concrete Canvas have signed an agreement to build a plant in Kyrgyzstan that will produce flexible concrete canvas, the government’s press service announced on February 6. Concrete Canvas manufactures waterproof, flexible, concrete-filled geosynthetic composite mats, primarily used to line irrigation canals to prevent erosion and reduce seepage losses. The planned production capacity of the new plant is at least 5 million square meters of concrete canvas per year. At the signing ceremony in Bishkek, Chairman of the Kyrgyz Cabinet of Ministers, Adylbek Kasymaliyev, highlighted the project as an example of an effective public-private partnership. He noted that five tons of this innovative material could replace 100 tons of cement in canal lining, significantly improving installation efficiency while delivering the same expected results. The agreement follows negotiations in April 2024, when representatives of Concrete Canvas visited Kyrgyzstan to discuss the project. The talks involved Kyrgyz Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, and the then British Foreign Secretary, David Cameron, who was on an official visit. Torobayev underscored the importance of the material, stating, “Across Kyrgyzstan, the length of canals is 30,000 km, including 11,000 km of unsurfaced canals. By laying concrete material on these canals, we will avoid seepage of water and ensure its efficient use. Kyrgyzstan is an agricultural country with a lot of arable land, so we really need such materials.” He also confirmed that the British company’s plant will be built in the Osh region, in southern Kyrgyzstan.

Kyrgyzstan to Export Agricultural Products to China

On February 6, in Beijing, Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, and China’s Head of the General Administration of Customs, Sun Meijun, signed protocols allowing the export of Kyrgyz agricultural products to China. The approved goods include beans, wool, cashmere, poultry meat, and offal. Torobayev emphasized that these agreements represent an important step forward in strengthening trade and economic ties between Kyrgyzstan and China. According to the Kyrgyz Ministry of Water Resources, Agriculture, and Processing Industry, trade turnover between the two countries nearly tripled from 2019 to 2023, reaching $5.433 billion - a 31.6% increase from 2022. In January-November 2024, bilateral trade continued to grow, rising by 6.9%. The Kyrgyz minister expressed optimism about the early signing of additional export protocols for dried fruits, fresh fruits, vegetables, berries, raw cattle hides, and heat-treated meat. "We are confident that these goods will be in demand in the Chinese market," he stated. To facilitate trade, Torobayev proposed establishing a Chinese certification body’s representative office in Kyrgyzstan to simplify the certification process for Kyrgyz exports to China. During his visit to Beijing, Torobayev also met with Jilin Teyan Biotechnology Co., Ltd., a Chinese manufacturer of veterinary vaccines, to discuss the supply of vaccines to Kyrgyzstan. The company expressed interest in building a vaccine production plant in Kyrgyzstan to manufacture treatments for cattle and poultry diseases. These discussions took place as part of Kyrgyz President Sadyr Japarov’s state visit to China from February 4 to 7. During a meeting on February 5, Chinese President Xi Jinping reaffirmed China’s commitment to expanding economic, trade, and investment cooperation with Kyrgyzstan and expressed China’s willingness to import more high-quality agricultural products from the country.

Kyrgyzstan Considers Potato Export Ban

Kyrgyzstan’s Ministry of Water Resources, Agriculture, and Processing Industry is considering a temporary ban on potato exports to prevent unjustified price increases. On February 1, Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry Bakyt Torobayev instructed the Antimonopoly Regulation Service and local authorities to closely monitor food prices. Government Efforts to Stabilize Prices Speaking on Birinchi Radio, Torobayev noted that on February 3, the wholesale price of potatoes in Osh, the country’s second-largest city, had reached 60 KGS (about $0.68) per kilogram. However, after government intervention, prices stabilized at 49 KGS (about $0.56) by the evening of the same day. In the capital, Bishkek, retail potato prices currently range from 55 to 58 KGS (about $0.65) per kilogram. Torobayev assured that Kyrgyzstan has sufficient potato reserves, with farmers storing supplies while intermediaries inflate market prices - at times reaching 75 KGS per kilogram. Potential Export Ban and Market Outlook The government is now considering restricting potato exports. Torobayev urged farmers to sell their produce rather than wait for higher prices, warning that an early spring could lead to an earlier-than-usual harvest, potentially affecting market rates. Kyrgyzstan’s move follows a similar decision in neighboring Kazakhstan, where The Times of Central Asia previously reported that rising potato prices prompted authorities to impose a six-month restriction on exports to non-Eurasian Economic Union (EAEU) countries.

Kazakhstan Bans Export of Gasoline and Diesel Fuel

Kazakhstan has officially banned the export of gasoline and diesel fuel by road and rail, according to a government decision that came into effect on January 29, 2025. The restriction is outlined in amendments to the joint order “On Some Issues of Export of Oil Products from the Territory of the Republic of Kazakhstan,” which were approved by the Minister of Energy, the Chairman of the National Security Committee (KNB), and the Ministers of Finance and Internal Affairs. Scope of the Ban and Exceptions Under the new regulations, the export of petroleum products - including to member states of the Eurasian Economic Union (EAEU) - is prohibited via road transportation. "Introduce a ban on the export of gasoline, diesel fuel, and certain types of petroleum products from the territory of the Republic of Kazakhstan, including to the EAEU member states, by road transport," the official statement reads. However, the government has outlined several exceptions: Lubricating oils may still be exported. Fuel contained in vehicle gasoline tanks is permitted for export, provided it meets factory specifications. Aviation fuel may be exported for scientific research, additive testing, laboratory studies, and industrial production, subject to government approval. Petroleum products designated for humanitarian aid are exempt from the ban during the period from September 29, 2024, to March 29, 2025. In addition to road transport, railway exports are also restricted, with limited exceptions. Gasoline exports within the framework of state-approved plans, as well as fuel deliveries for humanitarian aid and disaster relief efforts, will be permitted between February 1 and March 29. Government’s Rationale for the Ban The Ministry of Energy stated that the new restrictions aim to prevent fuel shortages in the domestic market. The move comes amid discussions about phasing out state regulation of fuel prices. As The Times of Central Asia previously reported, the Kazakh government is considering a gradual liberalization of gasoline and diesel fuel prices to reduce price disparities with neighboring countries and curb the illegal export of fuel and lubricants.

Kazakhstan Leads Central Asia in Average Salaries

Kazakhstan continues to hold the top position in terms of average wages among Central Asian countries, according to a study conducted by analysts at Ranking.kz. Wage Comparisons Across Central Asia Data from the Interstate Statistical Committee of the CIS reveals that as of September 2024, Kazakhstan's average nominal monthly salary stood at $817.20. This figure is nearly twice as high as in Uzbekistan ($437.80) and Kyrgyzstan ($411.20). Tajikistan trails significantly behind, with an average salary of just $242.80 - 3.4 times lower than Kazakhstan’s. Notably, the wage gap between Kazakhstan and Tajikistan would have been even greater if not for a significant increase in Tajik wages. Over the past year, nominal salaries in Tajikistan rose by 24.9%, while real wages increased by 21.1% - the highest growth rate in the region. In comparison, wage growth in Kazakhstan, Kyrgyzstan, and Uzbekistan was more moderate. Data on salaries in Turkmenistan remains unavailable as the country has not updated its wage statistics since 2023. Minimum Wage Comparison Kazakhstan also leads the region in terms of minimum wages. In 2024, the minimum wage in Kazakhstan is 85,000 KZT ($181.10). By contrast: In Uzbekistan, the minimum wage is $89.40. In Tajikistan, it is $54.90. In Kyrgyzstan, it is just $28.30. In Turkmenistan, the official minimum wage is reported as $402.90, based on the fixed exchange rate of 3.5 TMT per dollar. However, due to the country’s reliance on a "black market" exchange rate (approximately 19 TMT per dollar), the actual minimum wage is estimated to be much lower, around $74.20. Sectoral Analysis When analyzing nominal salaries by economic sector, the highest wages in the region are found in finance and insurance. In Kazakhstan, the average salary in this sector exceeds $1,700 - three times higher than in Tajikistan ($561.90). Workers in Kazakhstan's mining industry also enjoy high incomes. In Uzbekistan and Kyrgyzstan, the financial sector and IT industry offer the highest salaries. Meanwhile, in Tajikistan, relatively high wages are reported in the manufacturing and service sectors. Inflation and Its Impact Inflation remains a key factor affecting the real purchasing power of wages across Central Asia. According to the CIS Interstate Statistical Committee, the most significant price increases in 2024 occurred in the economically developed countries of the region - Kazakhstan and Uzbekistan. Uzbekistan: Inflation reached 7.7% in October 2024. Kazakhstan: Inflation stood at 6.6%. Kyrgyzstan: Inflation was lower at 4.2%. Tajikistan: The region’s lowest inflation rate was recorded at 3.2%. These inflation rates directly influence the population's purchasing power, even in countries with higher nominal salaries like Kazakhstan and Uzbekistan. Kazakhstan’s leadership in wages and minimum income underscores its position as the most economically advanced country in Central Asia. However, inflation and significant disparities in income distribution between sectors and regions remain challenges. While countries like Tajikistan are showing progress in wage growth, the overall gap in earnings between Central Asian nations continues to highlight economic inequalities within the region.

Economy Digitalization e-Commerce Digital Service economic

Kazakhstan’s Digital Exports Expand

Kazakhstan exported $471 million worth of IT services to 95 countries during the first nine months of last year, according to Zhaslan Madiyev, Minister of Digital Development, Innovation and Aerospace Industry (MDDIAI). The primary driver of export revenue in Kazakhstan's IT services market is Astana Hub, the largest international technology park for IT startups in Central Asia, located in the country's capital. Astana Hub is home to over 1,500 companies, including 400 international firms. In 2024, its total revenue reached 620 billion KZT ($1.1 billion), with export revenue amounting to 227 billion KZT ($428 million) across 92 countries. Additionally, the products of JSC "National Information Technologies" (NIT JSC), the operator of Kazakhstan’s “e-government” infrastructure, have also entered global markets. According to Madiyev, NIT JSC’s main exported products include Smart Data Ukimet, Smart Bridge, and Gov.kz: Smart Data Ukimet: An information-analytical platform designed for the secure collection, storage, and analysis of data from government information systems. Smart Bridge: A platform that simplifies integration processes between government agencies and private businesses through a "service showcase" model. Gov.kz: A unified platform for the online resources of government agencies. The export of Kazakhstan’s digital public services (GovTech) reached $2.7 million, with these solutions currently supplied to Tajikistan, Togo, and Sierra Leone. In addition to GovTech, Kazakhstan’s IT exports also include software, computer games, fintech solutions, and marketplaces. Among the largest exporters are five software developers, three computer game companies, one fintech firm, and one marketplace. “Most of the major exporters are foreign companies that have relocated to Kazakhstan, creating new jobs in major cities and regions, as well as contributing to export revenue,” said Madiyev. Kazakhstan has made significant strides in developing its IT infrastructure. The country now boasts 20 regional IT hubs that work closely with Astana Hub, fostering innovation across the nation. Furthermore, Kazakhstan is establishing an international network of IT hubs by opening IT offices in the United States, Saudi Arabia, Singapore, and the United Kingdom. “Kazakhstani startups now have foreign infrastructure to attract investment and expand their export markets,” said Madiyev. The minister also announced the launch of a fund of venture capital funds under the jurisdiction of the International Financial Center Astana (MFCA), based at Astana Hub. This fund, with an expected capital of $1 billion, will finance IT startups in Kazakhstan. As previously reported by The Times of Central Asia, Kazakhstan is home to 12 regional IT hubs that are actively contributing to the country’s growing digital economy.