Funding - The Times Of Central Asia

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Science

Increased Funding for Science in Kazakhstan Has Yet to Yield Results

Kazakhstan has significantly increased its spending on research and development, but this has yet to translate into a noticeable economic impact. Analysts point to structural imbalances and a weak link between science and business. According to the National Bureau of Statistics, research and development (R&D) funding in 2025 amounted to approximately $549 million, an increase of 19% compared to the previous year and nearly threefold over the past five years. At the same time, the funding structure has shifted toward greater state involvement. The share of budgetary funds rose to 81.5%, up from 51.3% in 2020, while private sector participation has declined to minimal levels. Experts note that this model limits the commercialization of scientific developments, which in most countries is primarily driven by the business sector. Kazakh President Kassym-Jomart Tokayev has previously stated that science funding has yet to deliver practical results, highlighting systemic inefficiencies and the ineffective use of resources. More than half of total funding, about $282 million, is allocated to research staff salaries. Meanwhile, approximately $117 million is spent on equipment, materials, and infrastructure. Funding for experimental design and development work, critical for bringing technologies to market, has declined to around $29 million, down from the previous year. Most expenditures continue to be directed toward basic and applied research. Despite increased investment, science’s contribution to the economy remains limited. R&D spending accounted for approximately 0.16% of GDP in 2025, unchanged from the previous year. Industry participation in scientific research also remains low, with spending in key sectors such as metallurgy, mechanical engineering, and the chemical industry lagging behind. Analysts argue that without a stronger role for the private sector and more effective commercialization mechanisms, increased funding is unlikely to produce significant technological outcomes.

Investment

Tajikistan’s Reliance on External Funding for State Investment Projects Is Growing

Tajikistan continues to implement a large-scale state investment programme. International financial institutions play a key role in financing these projects, however, while the government's own contribution remains limited. According to data from the State Committee on Investment and State Property Management, 82 state investment projects are currently under way in the country The total value of ongoing initiatives is estimated at approximately $4.67 billion. Of these, 55 projects are being implemented on a grant basis, five through loans, and another 22 have mixed financing. About $3 billion has already been allocated for procurement, works, and services related to the implementation of these projects. However, more than 70% of the funding is provided by just three international institutions. The World Bank remains the largest donor, contributing $1.725 billion (36.9%). It is followed by the Asian Development Bank with $914.7 million (19.5%) and the European Bank for Reconstruction and Development (EBRD) with $658.1 million (14.1%). Other investors include the Islamic Development Bank ($207.9 million), the Chinese government ($194.9 million), the Asian Infrastructure Investment Bank ($142.5 million), the German Development Bank ($129.3 million), and the European Investment Bank ($114.8 million). Against the backdrop of extensive external financing, Tajikistan’s own contribution remains small. The state is investing approximately $151.2 million, accounting for only 3.2% of the total. This means that the implementation of key infrastructure and social projects largely depends on international donors and lenders. At the same time, in 2025 Tajikistan managed to significantly increase capital inflows. Foreign investment reached approximately $7 billion, rising by nearly $2 billion (35.1%) compared with the previous year. The authorities hope to sustain this momentum by improving the investment climate, including through legislative updates. A key step was the adoption on May 14, 2025, of a new version of the law “On Investments and the Promotion of Investment Activity,” aimed at increasing the country’s attractiveness to international partners. The current development model allows Tajikistan to implement large-scale projects that would be difficult to carry out relying solely on domestic resources. However, this financing structure also increases dependence on external sources, making the economy more sensitive to the conditions set by international institutions and the global financial environment.

Foreign Grants

Japanese Grant Program to Fund School Construction and Hospital Modernization in Tajikistan

Japan has committed around $230,000 in grant funding for two new social infrastructure projects in Tajikistan, aimed at enhancing education and healthcare in regions impacted by the April 2025 earthquake. A formal signing ceremony took place in Dushanbe, where Japanese Ambassador Keiko Furuta and representatives of the beneficiary organizations signed two grant agreements under Japan’s Grant Assistance for Grassroots Human Security Projects (GGP) program. The funding will support the following initiatives: Construction of a new school in Vahdat village, Tajikabad district - $128,739 Modernization of medical equipment at the Central Hospital in Istiklol - $99,960 Speaking at the event, Ambassador Furuta highlighted Japan’s long-standing partnership with Tajikistan. “Japan has supported the people of Tajikistan across various sectors for more than 30 years. We hope these projects will be implemented as planned and bring tangible benefits to the public, particularly those affected by the recent earthquake,” she said. Furuta emphasized that Japan’s development assistance aims to improve safety, infrastructure quality, and overall public well-being. Since 1996, Japan has implemented 470 humanitarian projects in Tajikistan under the GGP, with a cumulative value of $39.2 million.

Future Games

Future Games 2026 in Kazakhstan Face Possible Delay Over Funding

Kazakh MP Sergey Ponomarev has proposed postponing the third edition of the Future Games, currently scheduled to be held in Kazakhstan in the summer of 2026, citing fiscal constraints. The Future Games are international competitions that combine traditional sports with their digital counterparts, with overall results determining the winners. The inaugural event took place in Kazan, Russia, in early 2024. The second edition, originally planned for Kazakhstan in 2025, was moved to the United Arab Emirates after the Kazakh government redirected funds to flood recovery efforts. The UAE is now set to host the event in December 2025. Speaking at a plenary session of the Mazhilis, Kazakhstan’s lower house of parliament, Ponomarev submitted a formal request to Prime Minister Olzhas Bektenov urging the postponement of the 2026 event. He estimated the cost of hosting the Games at 62 billion tenge (approximately $115 million), warning that such expenditures may not be prudent amid current budgetary pressures. “In 2024, the national budget posted a shortfall of 570.8 billion tenge (over $1 billion). Given the economic circumstances, it is worth questioning whether such large-scale spending in 2026 is appropriate,” Ponomarev stated. He noted that the estimated cost is equivalent to building at least six new schools. The lawmaker stated that postponing the tournament would not diminish its importance for Kazakhstan’s IT sector or international reputation but would allow more time to prepare under better conditions. “We are confident that our partners will understand, and that the Head of State will support this decision,” he said. The government has not yet issued an official response. As previously reported by The Times of Central Asia, the 2026 Future Games in Astana are expected to draw more than 1,500 athletes from nearly 100 countries, competing in 13 physical disciplines. The total prize fund is projected at $10 million.

Railways

EDB to Fund Feasibility Study for Railway in Kyrgyzstan’s Issyk-Kul Region

The Eurasian Development Bank (EDB) will provide a grant to Kyrgyzstan’s national railway company, Kyrgyz Temir Jolu, to prepare a preliminary feasibility study for a new railway line connecting the cities of Balykchy and Cholpon-Ata in the Issyk-Kul region. Balykchy and Cholpon-Ata are located 79 km apart. At present, the railway linking Kyrgyzstan’s capital, Bishkek, with Lake Issyk-Kul ends in Balykchy. The planned section would extend the line to Cholpon-Ata, the main resort city on the lake’s northern shore. A technical assistance agreement for financing the study was signed on August 14 by Azamat Sakiev, General Director of Kyrgyz Temir Jolu, and Iaroslav Mandron, Vice Chairman of the EDB Management Board. According to the EDB, the Balykchy-Cholpon-Ata project aims to boost both tourism and freight connectivity in the Issyk-Kul region, linking its resorts to the railway networks of Kazakhstan and Uzbekistan. It is also expected to support mineral resource development and expand freight operations by creating more reliable logistics routes. The preliminary feasibility study will compare technical and economic options, determine the optimal construction approach, develop a high-level financial and economic model, and provide recommendations for implementation and financing. “The new Balykchy-Cholpon-Ata railway section is crucial not only for strengthening Kyrgyzstan’s domestic transport system but also for advancing international logistics,” said Mandron. “The project will integrate with Tamchy Airport, about 40 km from Cholpon-Ata, helping increase both tourist and cargo traffic. The feasibility study is a strategic step that will allow the parties to move from intentions to concrete implementation mechanisms for a project estimated at around $500 million.”

Small Business

In Kyrgyzstan, 13,000 Low-Income Families Receive Funds to Launch Businesses

Over the past two years, 13,333 families in Kyrgyzstan living below the subsistence level have signed social contracts with the state. Through this initiative, each family received an interest-free loan of $1,700 to start a small business. According to the Ministry of Labor, the social contract program is designed to help families break the cycle of poverty by providing both start-up capital and practical support. Recipients use the funds to establish businesses, engage in subsistence farming, or purchase tools and equipment. In addition to financial assistance, the program offers training and consulting in sustainable agriculture and income-generating practices. How the Program Works Participants can use the funds to acquire equipment, materials, and other business essentials. The initiative has supported the creation of sewing workshops, food production facilities, apiaries, and small-scale poultry farms. Many recipients now produce honey, natural juices, felt goods, and meat products. The program is open to both new ventures and the expansion of existing microbusinesses. Specially trained consultants guide participants through the process of launching and managing their businesses, helping to increase long-term viability. Results and Regional Reach Although the social contract program was launched five years ago, its most significant impact has been seen in the past two years. More than 13,000 families have become self-sufficient and no longer require government aid. The majority of successful projects have emerged in Kyrgyzstan’s southern provinces, particularly Jalal-Abad and Osh, where rural entrepreneurship has rapidly expanded. Government data indicates that over 280 different products have been developed through the program. While most are sold domestically, a small number are now being exported abroad. This social contract initiative is a cornerstone of the government’s strategy to combat poverty and promote self-employment. Authorities emphasize its role in stimulating economic activity in rural areas and encouraging entrepreneurship among vulnerable populations.