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Agriculture

Kazakhstan Considers Supporting Dairy Sector to Curb Inflation

Kazakhstan’s government is considering additional support for dairy processors and bakeries as part of broader efforts to slow inflation and stabilize prices for essential food products. The proposal was discussed during a government meeting focused on inflation dynamics and price trends for socially significant food products. According to Aizhan Bizhanova, Kazakhstan’s First Vice Minister of Trade and Integration, inflation in the country has been slowing for five consecutive months, declining from 12.9% in September 2025 to 11.7% in February 2026. Food inflation has also continued to ease, falling from 13.5% in December and 12.9% in January to 12.7% in February. The ministry attributes the slowdown in part to the expansion of the list of socially significant food products subject to price regulation. The list has been expanded from 19 to 31 items, and since the beginning of the year authorities have opened more than 800 administrative cases related to violations of pricing rules. “During the first week of March, the price index for socially significant food products increased by 0.1%. At the same time, dairy products recorded price growth, mainly due to rising costs of raw milk,” the government’s press service said in a statement. Additional pressure on prices has also come from higher energy costs and increased production expenses. Dairy products account for a significant share of Kazakhstan’s food inflation, estimated at about 6.3%. The Ministry of Trade and Integration therefore proposed exploring mechanisms to support dairy processing enterprises in order to reduce production costs and stabilize prices. The government also discussed possible support measures for Kazakhstan’s bakery sector. Among the options considered were providing bakeries with discounted grain and flour and exploring the possibility of lowering railway tariffs for transporting raw materials. Officials suggested working with the national railway operator Kazakhstan Temir Zholy to reduce transportation costs for the sector. Participants at the meeting noted that prices traditionally rise in March due to seasonal factors. However, the Ministry of Trade and Integration plans to mitigate the impact through additional price discount campaigns and expanded agricultural fairs. Kazakhstan also continues to use a “green corridor” mechanism to facilitate the import of vegetables from neighboring countries. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin, who chaired the meeting, instructed authorities to conduct a detailed review of pricing at 42 dairy processing enterprises operating in Kazakhstan. The aim is to identify effective mechanisms for supporting producers and stabilizing consumer prices. Officials also highlighted slow releases of vegetables from regional stabilization funds, which supply products to the market at fixed prices. The slow pace was particularly noted in the Aktobe, Zhambyl, Kyzylorda, and Ulytau regions. Zhumangarin instructed the Ministries of Agriculture and Trade to inspect regional stabilization funds and verify the actual availability of products reported by local authorities. Despite recent improvements, several international organizations expect inflation in Kazakhstan to remain elevated in 2026. S&P Global Ratings forecasts inflation will reach about 11% by the end of the year. The Eurasian Development Bank predicts inflation could fall to 9.7% by...

Healthcare Policy

Doctors in Kyrgyzstan to Receive Double Salaries and Subsidized Housing

The Kyrgyz government plans to significantly expand social support for medical workers. According to Health Minister Kanybek Dosmambetov, beginning in April 2026, all doctors across the country will receive a 100% salary increase. In addition, 5,000 mortgage apartments will be provided to medical personnel on a priority basis, bypassing the general housing queue. Dosmambetov announced these measures during visits to the oncology and oncohematology departments of the National Center for Maternal and Child Health and the Center for Child Rehabilitation and Family Support in Bishkek, where he extended New Year greetings to patients and medical staff. Beyond the upcoming salary hike, medical professionals can already benefit from the state mortgage program, which offers access to housing at subsidized interest rates without the standard waiting period. These initiatives, according to the minister, aim to retain skilled personnel in the healthcare sector and enhance the overall appeal of the medical profession. “The ministry has been tasked with effectively reforming the healthcare system, establishing sustainable and transparent mechanisms for its operation, upgrading medical infrastructure, developing maternal and child healthcare, and strengthening public health and disease prevention services,” Dosmambetov said. He added that the coming period will be pivotal for Kyrgyzstan’s healthcare system. Government priorities include establishing a seamless supply chain for affordable, high-quality medicines, ensuring equitable operating conditions for private medical institutions, and reinforcing management discipline and accountability at all administrative levels. Particular attention will also be paid to the adoption of digital technologies aimed at increasing the transparency and accessibility of healthcare services and laying the groundwork for further structural reforms.

Capital Markets

Uzbekistan Unveils New Capital Market Reforms to Attract $1 Billion in Investment

Uzbekistan has approved a presidential decree aimed at enhancing the investment climate in the country’s capital markets. According to the Ministry of Justice, the reform package is designed to attract $1 billion in new investments by 2030 through the introduction of modern financial instruments. As part of this strategy, authorities plan to issue corporate bonds worth five trillion Uzbekistani som (approximately $415 million) to expand funding opportunities for local businesses. The ministry noted that the decree also focuses on improving investor protection by introducing mechanisms expected to eliminate over 85 percent of current violations in the capital market. A key component of the reform is the indefinite extension of the “Regulatory Sandbox”, a special legal regime that allows financial institutions to test innovative products under simplified regulatory conditions. Within the sandbox framework, Uzbek legal entities can apply for participant status, while foreign organizations and local investment funds may offer financial services related to the safe custody and accounting of securities they issue or hold. The decree also permits issuers, in specific cases outlined by law, to release unsecured corporate bonds exceeding the size of their own capital, broadening fundraising options for businesses. Separately, Uzbekistan has taken a major step toward digital finance. As previously reported, the Wallet service on the Telegram messaging platform officially launched in Uzbekistan on December 9, giving over 27 million local users access to cryptocurrency transactions. The service supports major digital assets such as Bitcoin, Toncoin, and USDT, enabling users to buy, store, and transfer crypto using local payment systems. The launch reflects Uzbekistan’s broader ambition to position itself as a regional hub for regulated digital financial services.

Social Spending

Kazakhstan Government to Cut Social Spending

The Kazakh government plans to reduce budgetary spending on social support. Prime Minister Olzhas Bektenov told parliament that only citizens who are objectively unable to work will continue receiving state assistance. According to the Cabinet of Ministers, approximately $16.9 billion was allocated to the social sector in 2024, representing 37.3% of total budget expenditures. Of that amount, $10.2 billion went toward social security and direct assistance to the population. In 2025, social spending is projected to rise to $18.4 billion, or 37.2% of the overall budget, with social payments continuing to represent a significant portion. “The social sector places a very heavy burden on the budget: benefits, payments, and various support measures account for about 60% of the total budget. For many years, these expenditures exceeded 40% of the republican budget. When forming the budget for the next three years, we reduced them to 38%,” Bektenov said during his remarks in parliament. He added that the government will continue its optimization efforts. Only citizens who are unable to work for objective reasons will qualify for state support, while those capable of working are expected to support themselves. According to the Ministry of Labor and Social Protection, as of October 1, 2025, targeted social assistance (TSA) was being provided to 274,400 individuals from 51,000 families. The total amount disbursed thus far in 2025 was $47 million, out of a planned $190 million for the full year. TSA is distributed quarterly to low-income families, with employable recipients required to participate in state employment programs. As previously reported by The Times of Central Asia, Deputy Prime Minister Serik Zhumangarin stated that the government would revisit the issue of increasing the minimum wage no earlier than 2027.

Agriculture

Tokayev Proposes Linking Farm Subsidies to Advanced Technologies

Kazakhstan’s President Kassym-Jomart Tokayev has proposed that state support for farmers be tied to their adoption of advanced technologies, including artificial intelligence (AI). The proposal was made during his speech at the country’s second Agricultural Workers Forum. Tokayev noted that while many farms are already using innovations such as smart farming systems, agricultural drones, satellite monitoring, and AI, technological development at the national level remains uneven. “We must move from isolated ‘smart’ solutions to full-scale digital agricultural production,” Tokayev stated. “Every farm should be incentivized to adopt digital technologies. State support should be directed toward those enterprises implementing innovations, including artificial intelligence.” Tokayev also reported that preferential lending to the agricultural sector has exceeded $1.9 billion in 2025, ten times more than five years ago. He stressed that the adoption of innovative technologies must extend beyond producers to include the regulatory authorities overseeing the agro-industrial sector. “It is necessary to develop an effective system for tracking and controlling state grain reserves using digital technologies and AI tools,” he said. “This requires modernizing existing grain elevators and constructing new, modern facilities. In state-backed financing programs for private elevators, having electronic systems for grain intake and dispatch should be a mandatory requirement.” Tokayev also highlighted persistent issues in agricultural data systems, which he described as fragmented and lacking integration. This, he said, results in policy decisions based on unreliable statistics. He called for comprehensive, objective data to be provided by the upcoming National Agricultural Census, which should serve as the foundation for updating digital infrastructure across the agro-industrial complex. Previously, The Times of Central Asia reported that Kazakhstan achieved a record harvest this year of grains, oilseeds, and legumes.

Kyrgyz Stock Exchange

Government Securities Drive Growth on Kyrgyz Stock Exchange

The trading volume of government securities on the Kyrgyz Stock Exchange (KSE) has nearly doubled in 2025. From January to August, turnover from treasury bonds and treasury bills reached $64.3 million, almost twice the figure for the same period in 2024. Despite this increase, government securities still account for a relatively small share of total market activity. According to local brokers, the market for government securities in Kyrgyzstan remains in its formative stages but is showing steady progress. Analysts attribute the growth to increased government focus on capital markets and active public outreach aimed at building trust in both sovereign and corporate instruments. “The fact that the state is entering the stock market and that the president publicly encourages investment, while legislative changes are being made to improve market regulation, all this has a positive impact on the development of the financial sector,” said Meerim Askarbekova, director of the financial company Senti, in an interview with The Times of Central Asia. “It builds confidence in the Kyrgyz stock market. The effect is not yet visible in numbers, but the authorities have set a strong direction for growth. Even foreign brokers and financiers have started to talk about the Kyrgyz market.” Askarbekova added that a decade ago, Kyrgyz financial professionals had limited visibility abroad and the stock exchange was undervalued domestically. Today, with greater government engagement, the KSE is attracting international attention and rising interest from local investors. Between January and August 2025, the KSE recorded 1,711 transactions totaling $1.8 billion, compared to 1,200 transactions worth $1.07 billion over the same period in 2024. The share of government securities in total trading volume rose from 2.7% to 3.4% year-on-year. KSE data shows that the primary buyers of treasury securities are large corporations and financial institutions. Notably, commercial banks now hold one-third of Kyrgyzstan’s domestic public debt. A major catalyst for market growth was the 2023 law mandating all state-owned enterprises to list their securities on the KSE. The Ministry of Finance led the way, setting a precedent for other public entities. Reform momentum continued in June 2025, when the government introduced new measures to boost stock market participation. Companies can now submit listing documents electronically, a green bond issuance framework has been established, and foreign issuers have been granted access to the exchange. These steps are expected to enhance cross-border investment and improve overall market liquidity.