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Kyrgyzstan Simplifies Entry Rules for Foreign Citizens

Kyrgyzstan has introduced significant changes to its visa policy, eliminating several visa categories, including business, tourist, and mountain tourism visas, as part of efforts to improve its investment climate and boost tourism. These visas will now be replaced with a streamlined system centered around a new “Sapar visa”, which can be issued within 24 hours of application. According to the Ministry of Foreign Affairs, the Sapar visa will be available to foreign citizens traveling to Kyrgyzstan for business, tourism, or private purposes, such as visiting friends or undergoing medical examinations. The visa allows stays of up to 90 days and offers both single-entry and multiple-entry options. The changes will take effect on January 22, 2025, with applications submitted through the government’s Electronic Visa portal. The e-visa portal, launched five years ago, was developed to simplify the visa application process, particularly for tourists and investors. The system is user-friendly, requiring only an internet connection, a credit or debit card for payment, and scanned copies of necessary documents. By modernizing its visa policies and making the process faster and more accessible, Kyrgyzstan hopes to attract more foreign investors and tourists, bolstering economic growth. The government’s approach reflects a commitment to removing bureaucratic hurdles and positioning the country as an attractive destination for both business and leisure travel.

Tourism Government Sustainable tourism international tourism tourism industry

Kyrgyzstan Launches Sustainable Tourism Development Program

The Cabinet of Ministers of Kyrgyzstan has approved a new Program for Sustainable Tourism Development which is set to run until 2030. The program aims to significantly enhance the country's tourism sector, focusing on sustainable growth, regional development, and environmental preservation. Program Priorities The program outlines several key areas for development: Strengthening state policy, improving regulations, and enhancing strategic management in tourism. Boosting the attractiveness of tourism services for both domestic and international travelers. Leveraging digital technologies to simplify access to tourism products. Ensuring the safety and security of tourists. Preserving and promoting Kyrgyzstan’s historical, cultural, and natural heritage while maintaining ecological balance. Stimulating regional development and supporting local economies through tourism initiatives. Improving transport, hotel, and tourism infrastructure. Encouraging the adoption of green technologies and supporting environmentally friendly practices. Promoting niche tourism markets such as medical, sports, and health resort tourism. The program has ambitious goals, including increasing tourism's contribution to the national GDP to 7% and achieving a 10% annual growth in the number of domestic and foreign tourists. Currently, tourism accounts for 2.7% of Kyrgyzstan’s GDP. Rising Tourism Numbers Kyrgyzstan’s tourism industry has seen steady growth in recent years. As previously reported by The Times of Central Asia, the country is expected to have attracted more than 10.5 million foreign tourists in 2024, up from 8.5 million in 2023. In the first eight months of 2024 alone, Kyrgyzstan welcomed 6.1 million foreign visitors. The majority of tourists came from Uzbekistan, Kazakhstan, and Russia, followed by travelers from Turkey, China, India, Germany, Pakistan, the United States, and South Korea. Infrastructure and Investment On January 11, the First Deputy Chairman of the Cabinet of Ministers, Daniyar Amangeldiev, chaired a meeting on tourism development. The discussions centered on improving tourism infrastructure, creating favorable conditions for investment in the sector, and designing new tourist routes. Amangeldiev emphasized the pivotal role of tourism in driving economic growth and creating jobs. As part of the government's plans, 40 new tourist bases are expected to open across the country by 2025. These will be developed in cooperation with local communities and investors. “We must improve services, develop unique routes, and ensure tourists’ safety throughout their journey in Kyrgyzstan,” Amangeldiev stated. A Vision for the Future With its diverse landscapes, rich cultural heritage, and growing global recognition, Kyrgyzstan is positioning itself as a major tourism destination in Central Asia. The new program aims to transform the sector into a key driver of sustainable development, while preserving the country’s natural and cultural treasures for future generations.

taxes Government Tax Legislation Economy

Kyrgyzstan Announces Tax Amnesty

The Kyrgyz government has introduced a tax amnesty as part of its efforts to ease the financial burden on citizens and stimulate economic activity. President Sadyr Japarov directed the government to draft the necessary legislation and submit it to the country's Parliament, the Jogorku Kenesh, for approval. One key measure is the abolition of the annual tax on movable property, previously ranging from $10 to $20 depending on vehicle engine capacity. Instead, this tax will now be incorporated into the price of gasoline, resulting in a one som (KGS) increase in fuel costs. “The Cabinet of Ministers of the Kyrgyz Republic is instructed to submit within two months a proposal to exempt vehicle owners from tax obligations unfulfilled as of January 1, 2025, provided there is no judicial act of recovery,” states the presidential decree. Tax Relief for Farmers and Entrepreneurs Farmers will benefit from a suspension of the agricultural land tax until 2030. Additionally, Japarov has prohibited tax authorities from conducting inspections of businesses except for unscheduled checks in cases where an organization or entrepreneur ceases operations. Citizens with tax debts as of January 1, 2022, will also be exempted from repaying those amounts. While the move has been welcomed by many Kyrgyz entrepreneurs, who see it as a step toward fostering business growth, it has also sparked mixed reactions. Some citizens who have already paid their taxes expressed frustration on social media, questioning the fairness of the amnesty. Changes to Tax Administration In a related development, Japarov instructed the Cabinet of Ministers to revise the system of electronic delivery notes used for monitoring business turnover and tax compliance. The updated system will retain electronic invoicing for a limited list of goods, with all other products exempt from such requirements. The recent reforms build on efforts initiated under Almambet Shykmamatov, the new head of the State Tax Service, to streamline Kyrgyzstan’s tax system and reduce administrative burdens on businesses.

Trade Government GDP Foreign Trade Export EAEU Foreign trade turnover

‘Made in Kyrgyzstan’ Program Aims to Boost Exports and Strengthen Global Presence

Kyrgyzstan’s Ministry of Economy and Commerce has launched the National Export Program "Made in Kyrgyzstan" for 2025-2028. Coordinated by the Kyrgyz Export Center, the initiative aims to help domestic producers access international markets, enhance the country’s export potential, and establish the “Made in Kyrgyzstan” brand as a recognizable symbol abroad. Program Goals and Priorities The program focuses on increasing Kyrgyzstan’s export volumes and foreign trade revenues by strengthening the position of Kyrgyz-made goods in global markets. It prioritizes key industries, including textiles, food, jewelry, and halal products, with the goal of making Kyrgyz exports more competitive internationally. To achieve these objectives, the program will: Support local entrepreneurs by promoting participation in international exhibitions and trade fairs. Facilitate access to financing and preferential loans for exporters. Streamline bureaucratic processes to expedite export procedures. Ensure domestic products meet international quality standards and certification requirements. Additionally, the program emphasizes increasing the export of high value-added goods and diversifying Kyrgyzstan’s export portfolio to reduce its negative foreign trade balance. Foreign Trade Trends According to the National Statistical Committee, Kyrgyzstan’s foreign trade turnover for January - October 2024 totaled $13.4 billion, marking a 6.4% increase compared to the same period in 2023. However, the trade balance remained negative, with exports accounting for 23.3% and imports for 76.7% of the total turnover. Key highlights include: Exports: Grew by 25.2% to $3.1 billion, largely driven by gold exports, which made up 34.1% of the total. Excluding gold, exports reached $2.1 billion, an increase of 21.9%. Imports: Rose by 1.8%, amounting to $10.3 billion. Trade with member states of the Eurasian Economic Union (EAEU) - Armenia, Belarus, Kazakhstan, and Russia - amounted to $4.2 billion, a 13.7% increase. Russia (71.8%) and Kazakhstan (26.4%) remained Kyrgyzstan’s largest trading partners within the EAEU. Meanwhile, trade with countries outside the EAEU reached $9.2 billion during the same period. Strengthening Export Potential The "Made in Kyrgyzstan" program aspires to boost exports of diversified, high-quality products while addressing the country’s trade deficit. By empowering local businesses, improving export infrastructure, and fostering global competitiveness, the initiative represents a significant step forward for Kyrgyzstan’s economic growth and international trade ambitions.

Economy Forecast OPEC Government Crude Oil

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.

Economy Government GDP Shadow Economy statistics

Kyrgyzstan Reports Decrease in Shadow Economy

Kyrgyzstan’s non-observed (shadow) economy, excluding the agricultural sector, accounted for 19.2% of GDP in 2023, marking a 1% decrease from 2022’s 20.2%, according to the latest data from the National Statistical Committee. The Committee attributes this improvement primarily to reductions in shadow activities within key sectors: wholesale and retail trade and motor vehicle repair by 0.5%, construction by 0.4%, and transportation and cargo storage by 0.2%. Historical data reveals a steady decline in the shadow economy’s share of GDP over recent years, estimated at 20.4% in 2021, 20.1% in 2020, and 22.8% in 2019. Shadow economic activities in Kyrgyzstan are concentrated in sectors such as trade, car repair, transportation, construction, processing industries, hospitality, and various services. Discrepancies persist, however, in shadow economy estimates. In January 2024, Minister of Economy and Commerce Daniyar Amangeldiev noted that international financial institutions assessed Kyrgyzstan’s shadow economy as comprising 60% to 70% of GDP. He explained this divergence by citing differences in methodologies used by the National Statistical Committee and international organizations to calculate the informal economy's size. Although the National Statistical Committee has yet to publish its shadow economy assessment for 2024, Minister Amangeldiyev recently highlighted the positive impacts of a shrinking shadow economy. He credited it, alongside growing trade volumes, with contributing to Kyrgyzstan’s GDP growth last year. For context, the U.S. Department of Commerce’s International Trade Administration estimates Kyrgyzstan’s informal economy at 25% to 72% of GDP, underscoring the challenge of accurately quantifying this sector.