• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
19 February 2025

Viewing results 1 - 6 of 249

Kasymaliyev: Kyrgyzstan to Focus on Hydropower and Economic Growth

As a small, landlocked country in the heart of Central Asia, Kyrgyzstan is prioritizing the expansion of its hydropower potential, enhancing transit opportunities, and digitalizing public administration, Chairman of the Cabinet of Ministers Adylbek Kasymaliyev said at the World Governments Summit in Dubai, United Arab Emirates, on February 11. According to Kasymaliyev, Kyrgyzstan’s position as an "upstream country" in the region largely shapes its water policy. The country’s total hydropower potential is estimated to exceed 140 billion kilowatt-hours per year. While Kyrgyzstan’s abundant water resources meet domestic needs, they also supply irrigation water to large farmland areas in downstream Central Asian countries such as Kazakhstan and Uzbekistan. Hydropower and Regional Energy Cooperation Kyrgyzstan’s flagship project in the water and energy sector is the construction of the Kambarata-1 hydroelectric power plant on the Naryn River, in partnership with Kazakhstan and Uzbekistan. Once completed, the plant is expected to generate 5.6 billion kilowatt-hours of electricity annually, meeting domestic demand while also enabling the export of surplus clean energy to neighboring countries. Transport and Trade: China-Kyrgyzstan-Uzbekistan Railway Another major infrastructure initiative highlighted by Kasymaliyev is the China-Kyrgyzstan-Uzbekistan railway, which broke ground in December 2024. More than just a transport corridor, the railway is seen as a strategic link connecting East and West. The route will facilitate the movement of goods from China to Kyrgyzstan and onward to Central Asia, the Middle East - including Turkey - and the European Union. “The project will strengthen interregional ties, help diversify transport routes, and enhance the region’s competitiveness as an international transport and transit hub, benefiting all Central Asian countries,” Kasymaliyev said. Digital Transformation and AI in Governance Kyrgyzstan’s third priority is digital transformation, aimed at reducing bureaucracy and lowering the cost of public services for citizens and businesses. “We are on the threshold of a new era of public administration, where digital transformation, artificial intelligence, and big data are not just tools but the foundation for making balanced and strategically sound decisions,” Kasymaliyev stated. He emphasized that AI offers unprecedented opportunities to improve governance efficiency. “Today, decisions worldwide are based on objective analysis of vast amounts of data. If we can assess the impact of fiscal reforms, energy tariff changes, or investment programs in advance, we can minimize risks, enhance economic resilience, and make truly well-informed decisions,” he said, adding that Kyrgyzstan is eager to adopt best practices from international partners.

U.S. Urges Tajikistan to Enforce Sanctions on Russian Firms Amid Ongoing Compliance Review

The Tajik government has received an official letter from the United States requesting compliance with sanctions against several Russian companies operating in the country, Chairman of the State Committee on Investment and State Property Management Sulton Rakhimzoda announced at a press conference on February 11. According to Rakhimzoda, the U.S. has requested clarification on what measures Tajik authorities plan to take regarding the sanctions. “This is a sensitive topic, and it is currently under consideration,” he stated. He added that sanctions against Russian companies are not a new phenomenon and that businesses affected by the restrictions should already have mechanisms in place to adapt. “It is clear that sanctions impact companies to varying degrees. However, as far as I know, they have already developed strategies to operate under these conditions. These issues are also being discussed in negotiations with the government,” Rakhimzoda said. He noted that the Investment Committee does not oversee this sector directly, but that the relevant government agencies are handling the matter. Following the start of the conflict in Ukraine, the U.S. and the European Union imposed strict sanctions on several Russian enterprises. In January 2025, the U.S. Department of the Treasury sanctioned Gazpromneft Tajikistan along with its parent company, Gazprom Neft. Tajik authorities have stated that the sanctions will not affect oil product imports into the country. However, experts warn that the restrictions could eventually impact other companies cooperating with Gazpromneft Tajikistan.

Kazakhstan to Diversify Agricultural Crops for Higher Yields and Increased Profits

Kazakhstan will continue diversifying its agricultural crop areas this year as part of efforts to double gross agricultural output, Minister of Agriculture Aidarbek Saparov announced at a government meeting on February 11, focused on preparations for the upcoming sowing season. According to Saparov, Kazakhstan plans to sow crops on 23.8 million hectares in 2025, an increase of 518,000 hectares compared to 2024. The crop diversification program will cover approximately 1 million hectares, while the area dedicated to highly profitable crops will expand by 750,000 hectares. The area under oilseed crops will increase by 365,000 hectares, reaching 3.3 million hectares, including a 50,600-hectare expansion for sunflower cultivation, bringing it to 1.3 million hectares. Potato cultivation will grow by 14,900 hectares to reach 136,800 hectares, while buckwheat fields will expand by 41,500 hectares, bringing the total to 147,000 hectares. The sugar beet planting area will increase to 18,400 hectares, and forage crops will expand by 184,000 hectares, reaching 3.4 million hectares. Cotton will be sown on 135,200 hectares, while rice will cover 90,200 hectares. Kazakhstan will also continue to reduce its reliance on wheat monoculture. In 2025, grain crops will be sown on 16.6 million hectares, slightly down from 16.7 million hectares in 2024. Over the past two years, wheat cultivation has been reduced by nearly 730,000 hectares, including 159,000 hectares this year. According to Saparov, diversification will help mitigate risks associated with price fluctuations in agricultural markets. Oilseeds and legumes remain in high demand both domestically and internationally, with consistently strong prices. While the average price of wheat stands at 65,000 - 70,000 KZT per ton, export-oriented crops such as flax and rapeseed can fetch 200,000 KZT per ton or more. Beyond economic benefits, crop diversification contributes to soil health. Saparov highlighted that legumes, in particular, help enrich the soil with nitrogen, improving the yield of subsequent crops. This approach not only increases profitability but also enhances environmental sustainability.

Uzbekistan Launches Eco-Friendly Program to Reward Green Lifestyles

Uzbekistan has introduced a new initiative to promote eco-friendly habits. A presidential decree has been adopted as part of the state program for implementing the 'Uzbekistan 2030' strategy during the country's 'Year of Environmental Protection and Green Economy'. The nationwide movement, One Million Green Families, aims to encourage sustainable living and raise environmental awareness. The program seeks to integrate eco-friendly habits into daily life through advocacy efforts and incentives. The initiative is based on several key principles: Promoting a healthy lifestyle through better nutrition, daily walks, and jogging Encouraging the use of green transportation, such as bicycles Reducing plastic waste Preventing food waste Using water, gas, and electricity more efficiently Sorting waste for recycling To support this initiative, the Ministry of Ecology, Environmental Protection, and Climate Change, along with the Ministry of Digital Technologies, will launch a digital platform in June. This platform will track participation and offer incentives to those who actively adopt eco-friendly practices. Citizens who demonstrate outstanding commitment to sustainable living will earn the title of "Eco-Active Citizen". Benefits include a 10% discount on public services and lower interest rates on consumer loans from state-owned banks. Families in which all adults achieve this status will be recognized as Green Families, and will have a chance to win one of 14 electric cars awarded annually through an open competition. The initiative also extends to local communities. Mahallas (neighborhoods) where at least half of the residents qualify as Green Families will compete in the Cleanest Mahalla and Greenest Mahalla contests. Winning communities will receive 500 million UZS ($38,500) to fund local infrastructure improvements, such as road repairs, energy-efficient lighting, playgrounds, green spaces, and waste management upgrades.

Kazakhstan Announces Differentiated VAT Rates

Kazakhstan’s Cabinet of Ministers has proposed a differentiated value-added tax (VAT) structure, with rates ranging from 0% to 16% and an intermediate rate of 10%. This announcement was made by Vice Minister of National Economy Azamat Amrin. The proposal comes after President Kassym-Jomart Tokayev rejected an earlier plan to increase the VAT rate to 20%. “We propose the following mechanism: a general VAT rate of 16%, full exemption from VAT for agricultural producers, and an intermediate rate of 10% for certain industries. Thus, the government's proposed differentiation consists of 16%, 10%, and 0% rates,” Amrin said during a meeting with business representatives in Astana. The government plans to determine which industries will qualify for the 10% VAT rate following consultations with the business community. Amrin also noted that agricultural VAT exemptions currently apply to peasant farms (family-labor associations), while larger legal entities in the sector pay about a third of all applicable taxes due to existing tax incentives. Now, the government is ready to abolish VAT for these larger agricultural enterprises as well to enhance the competitiveness of Kazakhstan’s agricultural products. Budget Implications of the VAT Reform Kazakhstan’s current general VAT rate stands at 12%. The government expects that raising it to 16% will generate an additional 4 - 5 trillion KZT ($7.8 billion - $9.7 billion) in annual tax revenues. In late January 2025, Minister of National Economy Serik Zhumangarin estimated that revising the VAT rate could bring in an additional 5 - 7 trillion KZT ($9.7 billion - $13.6 billion). At that time, authorities were considering a VAT increase to 20%, but late last week, President Tokayev publicly opposed such a sharp tax hike. Tokayev Calls for a Balanced Approach “It is necessary to explore different options, taking into account the specifics of various economic sectors,” Tokayev said during a meeting with representatives of Kazakhstan’s largest businesses. “I have not previously commented on this matter, as every word I say can be interpreted as a direct order due to my official status. However, I now want to make my position clear: the VAT rate should be differentiated. The rate proposed by the government was still too high,” the president stated. Tokayev emphasized the need for a balanced approach that supports businesses while also increasing budget revenues. “The state needs optimal solutions that, on the one hand, create favorable conditions and do not hinder business, and on the other hand, bring order to the tax system and ensure sustainable budget growth,” he added. Following the president’s remarks on Friday, February 7, the government revised its VAT reform plan, announcing the new differentiated rates on Monday, February 10. VAT Reform as Part of Kazakhstan’s Broader Tax Overhaul As The Times of Central Asia previously reported, the draft of Kazakhstan’s new Tax Code, which includes the VAT reform provisions, also proposes a differentiated corporate income tax (CIT) rate for banks. The aim is to encourage business lending by making it more financially attractive than consumer lending or investments in government securities.

Kazakhstan to Build Fiber-Optic Highway for Internet Traffic

On February 6, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry signed a memorandum of cooperation with Freedom Telecom Holding Ltd. to construct a fiber-optic highway and data centers for the transit and storage of international internet traffic. According to the ministry, the West-East national highway will significantly expand data transmission capacity and position Kazakhstan as a key hub for international internet traffic transit. The project aims to enhance connection speeds, improve data transfer efficiency, and establish an alternative route for internet traffic between Europe and East Asia. The hyper-highway is scheduled for completion in 2026. It is expected to attract major international clients, including IT firms, telecommunications companies, and financial institutions seeking fast and secure data transit. Kazakhstan views the hyper-highway and data center initiative as a strategic step toward strengthening its digital infrastructure. The project will boost Kazakhstan’s role in global internet traffic transit while establishing a robust and secure data storage network. The development will be financed through private investment. Freedom Telecom, a subsidiary of Freedom Holding Corp. (Kazakhstan), currently provides broadband internet access and open Wi-Fi in major cities across the country.