Forecast - The Times Of Central Asia

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Drought Forecast Ecology

Kazakhstan Warns of Potential Drought Impact on Western and Southern Harvests

Southern and western regions of Kazakhstan are expected to face a shortage of rainfall this summer during the critical ripening period for vegetables and fruits. Minister of Water Resources and Irrigation, Nurzhan Nurzhigitov, has urged local authorities and the Ministry of Agriculture to prepare measures for irrigating croplands. Speaking at a government meeting, Nurzhigitov cited forecasts from Kazhydromet, Kazakhstan’s national meteorological service, supported by data from the World Meteorological Organization and the North Eurasian Climate Center. According to the forecasts, a short-term drought is expected in May in the southern part of the Kostanay region, a major grain-producing area in northern Kazakhstan. However, this will likely be alleviated by subsequent summer rains. In contrast, the May drought in other regions is expected to persist. Areas likely to be affected include the southwestern half of West Kazakhstan and Mangistau regions, the northwestern Kyzylorda region, northern parts of the Almaty and Zhambyl regions, southern Karaganda, and various parts of the Aktobe, Atyrau, Abai, and Turkestan regions. Nurzhigitov emphasized that the western and southern regions, located in the Zhayik and Syr Darya river basins, are particularly at risk. He warned that prolonged dry conditions could significantly disrupt the agricultural sector. “It is necessary to develop a set of operational measures aimed at minimizing the consequences of a possible moisture deficit,” he said, highlighting especially severe concerns about water shortages in the Turkestan and Kyzylorda regions. According to Nurzhigitov, water reservoirs in the affected basin are currently at only 75% of average capacity. As previously reported by The Times of Central Asia, Kazakhstan aims to boost its grain exports this year, with an eye on expanding deliveries to Africa.

Energy Forecast Electricity Power deficit Energy deficit Power Plant

Kazakhstan Faces Record Power Deficit as Electricity Shortfall Hits 2.4 Billion kWh

Kazakhstan has experienced its most significant electricity imbalance in recent years. According to data from Energyprom.kz, the gap between electricity production and consumption reached 2.4 billion kilowatt-hours (kWh) in 2024, an increase of 200 million kWh from 2023, when the shortfall stood at 2.2 billion kWh. While the country’s total generation amounted to 117.9 billion kWh, domestic consumption exceeded 120.4 billion kWh. Imports Offset Domestic Shortfalls To address this growing energy deficit, Kazakhstan primarily imports electricity from Russia. Smaller volumes are supplied by Kyrgyzstan, although these are typically part of Russian transit deliveries to Kyrgyz consumers. Despite these imports, domestic electricity generation continues to grow at a modest pace. In 2024, total generation rose by 4.2%, with a 3% year-on-year increase recorded in the first two months of 2025. Nevertheless, the production boost has not been sufficient to meet demand, necessitating continued reliance on external suppliers. Decline in Coal Dependence One notable trend is the gradual reduction in Kazakhstan’s dependence on coal-fired thermal power plants (TPPs), traditionally among the most polluting energy sources. In 2024, the share of coal-fired generation declined from 77.4% to 74.9%, equivalent to approximately 88.4 billion kWh of total output. In contrast, the share of alternative power sources increased. Hydroelectric power plants (HPPs) contributed 9.5% of total generation, up 1.8 percentage points year-on-year, while gas turbine power plants (GTPPs) accounted for 10.1%, a 0.3-point increase. Renewable energy sources, including wind, solar, and biogas, produced 6.4 billion kWh, representing 5.4% of total electricity output. Revised Forecasts and Growing Challenges The Ministry of Energy of the Republic of Kazakhstan has updated its projections to reflect the sector’s challenges. As of early 2025, officials estimate the country’s electricity deficit could grow to 5.7 billion kWh by year-end. This revision stems from downgraded forecasts for generation volumes, which are now projected at 117.1 billion kWh, down from an earlier estimate of 121.8 billion kWh. Expectations for the commissioning of new generation capacity have also been lowered, further exacerbating the shortfall. Nonetheless, government planners remain cautiously optimistic. If several large-scale energy projects move forward on schedule, the deficit could shrink to 2.6 billion kWh by the end of 2026. A full build-out of planned capacity could even lead to a surplus. New Capacity and Long-Term Plans The government has outlined plans to construct 59 new energy facilities with a combined capacity of 26.4 gigawatts (GW). These include both new builds and upgrades to existing plants. Major initiatives involve constructing a nuclear power plant (2.4 GW) and a third state district power station (GRES-3) with 2.6 GW of capacity. Additionally, 11 regional centers are set to receive combined-cycle gas turbines with a total capacity of 4.5 GW. Renewable energy is also a key focus. By 2029, Kazakhstan aims to commission four large wind power plants equipped with energy storage systems, totaling 3.8 GW in capacity. These projects are being developed through intergovernmental agreements with investors from the United Arab Emirates, France, and China.

Forecast Asian Development Bank Economic Growth Tajikistan

ADB Forecasts Steady Economic Growth for Tajikistan Through 2026

The Asian Development Bank (ADB) projects that Tajikistan will sustain strong economic growth over the next two years, according to the bank’s Asian Development Outlook 2025 released in April. Robust Growth Ahead Tajikistan’s gross domestic product is forecast to grow by 7.4% in 2025 and 6.8% in 2026. This growth is expected to be fueled by significant investments in the energy and industrial sectors, solid domestic demand, and an increasingly dynamic private sector. While these figures mark a slight decline from the impressive 8.4% GDP growth recorded in 2024, one of the highest in the region, the ADB highlights the need for deeper structural reforms. In particular, digital transformation and the expansion of e-governance are deemed critical to ensuring long-term, sustainable development. Digital Transformation: Opportunities and Hurdles ADB’s Resident Representative in Tajikistan, Ko Sakamoto, emphasized the strategic importance of digitalization. “We welcome the government’s prioritization of digital transformation as a key driver of development. We stand ready to support efforts to overcome persistent barriers, including a lack of investment,” he said. Despite widespread mobile phone usage, Tajikistan ranks 139th globally in mobile internet speed. However, digital engagement is on the rise: in the first half of 2024, the number of registered digital wallets hit 10.4 million, and non-cash transactions rose 16.2% year-on-year. ADB experts recommend that Tajikistan focus on developing a robust digital infrastructure to broaden access to public services. The widespread integration of digital technologies in governance and business is seen as vital to industrial modernization and improving overall quality of life. Inflation, meanwhile, is projected at 5.0% in 2025 and 5.8% in 2026. Key inflationary pressures include rising consumer lending, salary increases for public sector employees, and higher utility tariffs. Continued Partnership and Support The Asian Development Bank, a major multilateral financial institution supporting sustainable and inclusive development across Asia and the Pacific, has been working with Tajikistan since 1998. Over that time, the country has received more than $2.7 billion in assistance, including $2.2 billion in grants. These funds have supported vital infrastructure projects in transportation and energy, as well as climate resilience and social development programs. Established in 1966, ADB has 69 member countries, 49 of which are from the region. The bank continues to be one of Tajikistan’s principal development partners, offering innovative financing tools and strategic cooperation to enhance economic sustainability and improve livelihoods.

Opinion – Storm Clouds Over Kazakhstan: Oil Slump and Global Risks Threaten Economic Stability

The persistent decline in Brent crude prices is the latest sign of a looming 'perfect storm' for Kazakhstan’s economy, the largest in Central Asia. With the mining sector comprising nearly half of its GDP and oil as a cornerstone resource, the nation’s economic stability is facing a cascade of potential shocks. Oil Prices and Budget Vulnerability Kazakhstan is grappling with significant economic headwinds amid forecasts of a global recession and declining energy prices. In April 2025, OPEC+, including Kazakhstan, unexpectedly agreed to raise oil production by 411,000 barrels per day, pushing prices below $65 per barrel. Given the country's reliance on hydrocarbon exports, such price drops jeopardize state revenues. Analysts say Kazakhstan needs oil prices to remain above $42.30 per barrel in 2025 to maintain fiscal stability. However, the threat extends beyond oil. As energy journalist Oleg Chervinsky noted on his Telegram channel, global commodity prices across the board are falling, a signal that recession is imminent. “The bad news for Kazakhstan is that prices are dropping not only for oil but for all raw materials,” Chervinsky wrote. “JP Morgan estimates the global recession probability at 60%. Even though oil and gas are exempt from Donald Trump’s new tariffs, the broader protectionist policies could fuel inflation, curb growth, and escalate trade tensions”. Trump's Trade War and Kazakhstan President Donald Trump’s sweeping tariffs are designed to limit low-cost imports and incentivize domestic production. Kazakhstan has been hit with a 27% tariff, the highest among the Central Asian nations. Its strategic location within China’s Belt and Road Initiative positions it as a potential re-export hub, prompting higher trade scrutiny. Kazakhstan’s Ministry of Trade and Integration has downplayed the immediate economic impact, noting that U.S.-bound exports account for less than 5% of total trade, and the country still holds a $1 billion trade surplus with the U.S. While the direct fallout may be limited, the broader implications of a global trade war could severely strain Kazakhstan’s economy. If a global recession takes hold, demand for Kazakhstan’s key exports, oil, uranium, and metals, will drop, dragging prices down further. Currency Pressures and Investor Retreat With shrinking export revenues, the tenge faces devaluation, leading to inflation, rising import costs, and weakened consumer purchasing power. In addition, recessions typically dampen foreign direct investment, especially in emerging markets like Kazakhstan, where perceived risk grows amid uncertainty. The China Factor The U.S.-China trade conflict is another critical variable. Trump’s strategy aims to undercut Beijing’s economic strength, but for Kazakhstan, China is its largest trading partner, representing over 15% of foreign trade. A slowdown in China would reduce demand for Kazakhstani raw materials and transit services. Such a downturn could also jeopardize President Kassym-Jomart Tokayev’s ambition to establish Kazakhstan as a vital trade corridor between China and Europe. While the Belt and Road Initiative is unlikely to collapse, reduced cargo flows would strain state revenues. China is also the primary buyer of Kazakhstan’s copper, aluminum, and ferroalloys. Any industrial slowdown there immediately impacts Kazakhstan's export volumes. Converging Risks Taken...

Controversies and Rejections: What Future Awaits the CSTO?

Armenia has officially refused to contribute financially to the Collective Security Treaty Organization (CSTO), a bloc tasked with ensuring the independence, territorial integrity, and sovereignty of its member states. Meanwhile, the organization’s Secretary General, Imangali Tasmagambetov, has come under scrutiny for remarks he made related to the ongoing conflict between Russia and Ukraine. Shifting Alliances and Regional Tensions Founded in 1992, the CSTO comprises Russia, Kazakhstan, Kyrgyzstan, Belarus, Tajikistan, and Armenia. Georgia, Azerbaijan, and Uzbekistan have withdrawn from the organization at various times. While the CSTO regularly conducts joint military exercises and cooperates on counter-terrorism and anti-narcotics efforts, the war in Ukraine has exposed internal divisions and challenged the bloc’s cohesion. Tasmagambetov Responds to Criticism In March, Secretary General Tasmagambetov raised eyebrows in an interview with a Russian outlet, warning that any deployment of EU troops to Ukraine could escalate regional tensions. He stated that the CSTO would be ready to provide assistance “within the framework of the organization’s charter and subject to approval by all member states.” The remarks sparked a backlash, particularly on social media in Kazakhstan, where some users accused Tasmagambetov, the former prime minister, of adopting a pro-Russian stance. Responding in late March, Tasmagambetov recorded a rare video message clarifying his position. “How can one calmly react to baseless claims that I would send my compatriots to war?” he asked. “There will always be those who distort my words. I have always remained loyal to my people; the interests of our country have always come first.” Tasmagambetov went on to urge viewers to think critically about information shared online. This controversy follows an earlier statement by Aibek Smadiarov, spokesperson for Kazakhstan’s Ministry of Foreign Affairs, who said in October 2022 that the CSTO had no plans to involve itself in the Ukraine conflict. “The CSTO's jurisdiction is limited to the internationally recognized territories of its member states,” Smadiarov stated. Kazakhstan, meanwhile, is reviewing a report by a Ukrainian institution that said about 661 Kazakh citizens have fought for Russia since it launched a full-scale invasion of Ukraine in February 2022. The I Want To Live center, which is run by the Ukrainian security services and assists with surrender requests from soldiers fighting for Russia, published a list of what it said were the Kazakh nationals. Of the 661, at least 78 have been killed, according to the center. Without providing details, it said it received the list from its own sources within the Russian military. Kazakh media quoted Igor Lepekha, Kazakhstan’s deputy interior minister of internal affairs, as saying the numbers have to be checked because it is unclear whether they are reliable. Kazakhstan bans mercenary activities in foreign conflicts and has opened a number of related investigations in the last few years. Last year, a court in Kazakhstan sentenced a Kazakh national to more than six years in jail for fighting with Russia’s Wagner Group in Ukraine. Armenia Pulls Back Adding to the bloc’s instability, Armenia recently announced that it would no longer finance the...

Kazakhstan Revises 2025 Oil Production Target Amid OPEC+ Commitments

Kazakhstan’s Ministry of Energy has lowered its 2025 oil production target by one million tons as part of the country’s commitment to meeting its obligations under the Organization of the Petroleum Exporting Countries (OPEC+) agreements. In 2024, Kazakhstan had already reduced oil production by 2.5 million tons compared to its original plan. The revised target for 2025 now stands at 96.2 million tons, down from the 97.2 million tons announced in December 2024. Despite the reduction, Prime Minister Olzhas Bektenov has instructed the Energy Ministry to implement stronger measures to increase natural gas and oil production to meet planned output levels. Frequent revisions to production forecasts in 2024 highlighted the ongoing challenges in achieving production stability. The lowered forecast is attributed to several factors, including extended maintenance shutdowns at major oilfields. The Tengiz oilfield experienced shutdowns in May and August, totaling 50 days, while the Kashagan oilfield underwent maintenance for 21 days. Additionally, an unscheduled shutdown occurred at the Karachaganak field. Production was further impacted by limitations on gas intake at the Orenburg gas processing plant, which affected operations at Karachaganak. Planned maintenance at the Caspian Pipeline Consortium (CPC)—the primary route for Kazakh oil exports—also constrained transportation capacity. Compliance with OPEC+ agreements added to the reductions in production. In mid-2024, Kazakhstan, alongside Russia and Iraq, submitted compensation schedules to OPEC to fulfill their obligations to cut oil production after exceeding quotas under the OPEC+ agreement. Under this plan, Kazakhstan began reducing production by 18,000 barrels per day in July and further cut output by 265,000 barrels per day in October 2024. These reductions will continue until September 2025. Oil export revenues in 2024 amounted to approximately 2 trillion KZT ($3.8 billion), while total budget revenues from the oil sector exceeded 2.3 trillion KZT ($4.4 billion). As previously reported by The Times of Central Asia, the National Bank of Kazakhstan recently lowered its forecast for oil prices in 2025, reducing the projected cost from $82.5 to $70 per barrel. This, combined with the revised production volumes, is expected to further impact revenues from the oil sector.