Kyrgyzstan’s Jewelry Industry Emerges from the Shadows
The jewelry industry in Kyrgyzstan is experiencing rapid growth, marked by a surge in exports, an expanded geographic reach, and a significant rise in foreign trade operations, according to official statistics. According to the National Statistical Committee, Kyrgyz jewelers quadrupled the volume of foreign trade in jewelry made from precious metals during the first four months of 2025. This figure encompasses both exports and imports. Approximately 100 kilograms of jewelry, valued at around $600,000, were exported. Export revenues increased fourfold compared to the same period in 2024. Meanwhile, imports reached 15.6 tons, worth $5.8 million, more than double the previous year’s figures. Russia and Italy were the primary destinations for Kyrgyz jewelry exports. Business Legalization and Tax Incentives Stalbek Akmatov, president of the Kyrgyz Jewelers' Union, told The Times of Central Asia that this growth was driven by the industry’s formalization, which allowed jewelers to operate legally, pay taxes, and submit accurate reports. "First of all, I would like to thank our authorities, the Jogorku Kenesh and the Cabinet of Ministers," Akmatov said. "Recently, significant changes were introduced to the Tax Code and legislation concerning precious metals. Instead of three separate taxes, VAT, sales tax, and income tax, a single tax of 0.25% has now been implemented." Akmatov noted that the new tax policy has provided a substantial boost to production and exports, while significantly reducing the size of the shadow economy, which previously accounted for over 90% of the sector. Experts estimate that less than half the industry now remains informal. Entry into the Kazakh Market Kyrgyz jewelers are also exploring new markets. Akmatov highlighted that one company has already exhibited twice at a jewelry fair in Almaty and has begun selling products featuring national designs. "The current volume of exports to Kazakhstan is small, just a few kilograms, but it's only the beginning. The potential in this direction is enormous," he told TCA. Persistent Challenges: Scrap Gold and Regulation Despite these advancements, challenges remain. One major issue is the high cost of scrap gold for local producers. As was the case five years ago, scrap gold is sold with a 5% markup over the London gold price, even though Kyrgyzstan annually produces several dozen tons of gold and even more silver. Akmatov also pointed to restrictive regulations on the circulation of precious metals. "If gold could be traded freely like a currency, our sales would increase significantly," he stated. The Jewellers' Union is currently in talks with the Ministry of Economy and Commerce on liberalizing precious metals circulation within the country.
