Kyrgyzstan - The Times Of Central Asia

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Kyrgyzstan Reports Strong Economic Growth in Early 2025

Kyrgyzstan’s economy continued its upward trajectory in the first quarter of 2025, with GDP expanding by 13.1%, according to Prime Minister Akylbek Japarov. He credited the surge to positive developments across all key sectors prioritized by the government. The food industry posted remarkable growth of 71%, while the construction sector expanded by 69%. Investments in fixed capital jumped by 90% during the same period. A detailed economic overview published by the Ministry of Economy and Commerce highlighted that Kyrgyz businesses are adapting rapidly to shifting external conditions. The ministry also pointed to increased domestic demand and investment activity as key drivers of growth. "From January to March 2025, about 93% of total investments were directed toward mining, processing industries, information and communications, electricity and gas supply, and the construction of housing and educational institutions," the ministry stated. The construction sector alone contributed three percentage points to GDP growth. However, services remain the backbone of Kyrgyzstan’s economy, accounting for 4.5 percentage points of overall growth. Within the sector, trade made up 27.4%, transportation services 10.3%, and financial intermediation and insurance services another 10.3%. Annual inflation stood just below 7% in the first quarter, with average prices for consumer goods rising by 3.5% during the reporting period.

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Kyrgyz Clergy to Compete in Traffic Rules Knowledge Contest

The Spiritual Administration of Muslims of Kyrgyzstan (DUMK) will hold a competition among its members to test their knowledge of traffic regulations. The participants will include mosque imams and staff from DUMK's central office, according to a statement on the Muftiate's official Facebook page. The initiative follows a recent meeting between DUMK representatives and officials from Kyrgyzstan’s Main Directorate of Road Traffic Safety (DGUOBDD). Traffic police emphasized the importance of promoting traffic rule compliance among the public, and particularly among the faithful, highlighting the clergy’s influential role in society. “To effectively promote road safety, religious leaders themselves must be well-versed in traffic laws,” said a DUMK spokesperson. “Shariah places great value on human life, which is why it mandates adherence to rules that protect it, including traffic regulations.” Addressing a Rising Crisis Traffic violations and accidents are a persistent issue in Kyrgyzstan. The DUMK noted that the National Statistical Committee records road accidents approximately every 90 minutes across the country. The situation is especially serious in rural areas. In response, the Muftiate has been conducting awareness campaigns in mosques nationwide for several years, including the ongoing “Human Life Above All” initiative aimed at reinforcing the religious imperative to safeguard life. Government Push for Compliance The clergy-led effort aligns with a broader push by the Kyrgyz government to enhance road safety. Starting in September 2025, drivers who commit traffic violations will be subject to on-the-spot knowledge tests, under a policy introduced by President Sadyr Japarov. This cooperation between religious and state institutions reflects a growing effort to integrate moral authority into public safety campaigns, particularly in a country where religious leaders remain influential community figures.

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Kyrgyzstan Launches New IT Hub in Bishkek

On April 10, the Technopark IT hub officially opened in Bishkek, marking a significant milestone in the development of Kyrgyzstan’s fast-growing tech sector. Spanning 14,000 square meters and designed to accommodate 1,500 jobs, the new hub was built with private investments totaling 2 billion KGS (more than $22 million). The facility serves as a center for digital innovation, entrepreneurship, and creative collaboration, featuring office spaces, co-working areas, conference rooms, and a professional podcast recording studio. Current residents of the IT hub include some of Kyrgyzstan’s largest online services for trade, employment, real estate, and cryptocurrency exchange platforms. The opening ceremony was attended by President Sadyr Japarov, who was welcomed by BilimBot, a Kyrgyz-speaking robot developed by local programmers. In his remarks, Japarov highlighted the central role of digitalization and technology in modern economic development. “Today, the world is undergoing rapid changes. The development of countries no longer depends only on natural resources. In the past, the global economy was dominated by countries rich in minerals or with access to the sea. Now, these factors are no longer decisive. We live in the digital age. The ability to use knowledge and technology as resources that can compete with natural ones has come to the fore,” he said. The president also discussed legislative reforms aimed at fostering Kyrgyzstan’s IT landscape. In 2023, Japarov signed amendments to the Law on the High Technology Park of the Kyrgyz Republic, which extended its preferential tax regime indefinitely, a move designed to attract both local and international tech companies. Established in 2011, the High Technology Park (HTP) was created to stimulate IT business development by offering substantial tax relief to companies exporting digital goods and services. Previously, tax exemptions were set for a 15-year term expiring in 2026. Under the new legislation, these tax benefits are now permanent. Resident companies of the HTP enjoy exemptions from sales tax, profit tax, and value-added tax (VAT). Employees benefit from a reduced income tax rate of 5%, and the social insurance tax is fixed at 12% of the average monthly wage. The IT sector is now one of Kyrgyzstan’s most dynamic industries. In 2021, the government created the Ministry of Digital Development to lead efforts in e-government services and to expand digital access across the country.

Kyrgyzstan Transportation North-South Highway delay

Kyrgyzstan Delays Opening of Alternative North-South Highway to 2026

Kyrgyzstan has pushed back the opening of its long-anticipated alternative North-South highway to 2026, according to the Ministry of Transport and Communications. The route was originally slated to open in May 2025, but the timeline has been extended to accommodate additional infrastructure work. The delay stems from plans to construct two avalanche protection galleries, three overpass bridges, and a 25-kilometer bypass section between the villages of Barpy and Safarovka. The ministry confirmed that all additional construction will be completed by 2026. The 433-kilometer highway is a strategic transport corridor linking Balykchy in the Issyk-Kul region with Jalal-Abad in the south. Notably, approximately 200 kilometers of the route traverse areas where no roads previously existed. Key engineering achievements along the route include Kyrgyzstan’s longest tunnel, located at the Kok-Art mountain pass, and two major overpass bridges. Once operational, the highway is expected to cut travel time between Jalal-Abad and Balykchy from 13 hours to just six. Currently, the only existing route connecting Kyrgyzstan’s northern and southern regions is the Bishkek-Osh highway. The new North-South corridor is expected to dramatically enhance both passenger and freight transportation between the regions, especially in the absence of a direct railway connection.

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Kyrgyz Lawmaker Challenges $15 Tint Fee for Drivers Crossing into Uzbekistan

Kyrgyz drivers crossing into Uzbekistan are being charged a $15 fee if their vehicle windows are tinted, a policy that has drawn criticism from Kyrgyz lawmaker Dastan Bekeshev. Speaking during an April 2 session of the Jogorku Kenesh (Supreme Council of Kyrgyzstan), Bekeshev urged the government to either introduce a reciprocal fee for Uzbek vehicles entering Kyrgyzstan or to negotiate with Tashkent to eliminate the charge altogether. Addressing Foreign Minister Jeenbek Kulubaev, Bekeshev explained that many Kyrgyz citizens regularly travel between Jalal-Abad and Batken, routes that often require passage through Uzbek territory. “They charge $15 for every car with tinted rear windows, almost every day. But we don’t charge them anything,” he said. The fee is collected via Uzbekistan’s MBANK mobile application, streamlining payment for drivers. Many Kyrgyz citizens consider the charge unjustified and burdensome. Tinting regulations differ significantly between the two countries. In Kyrgyzstan, individuals must pay 50,000 KGS (around $576) annually to tint their vehicle windows, while businesses pay 70,000 KGS (about $807). In Uzbekistan, rear window tinting is permitted at no cost, but tinting front windows costs approximately 3 million UZS (around $234) per year. Kulubaev acknowledged that the issue had not been formally raised before but assured lawmakers that it would be examined. “We can discuss this on a mutual basis and bring it up at an intergovernmental commission meeting,” he stated. Uzbekistan introduced the $15 fee in 2018 through a government decree aimed at regulating vehicle window tinting. Proceeds from the fee are directed to the state budget. The debate now centers on whether Kyrgyzstan should adopt a reciprocal policy or seek a bilateral agreement to eliminate the fee, a decision that may set a precedent for broader discussions on regional transportation and cross-border regulations.

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Kyrgyzstan to Improve Farmland Monitoring with EBRD and FAO Support

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have launched a joint initiative titled Greening Kyrgyzstan’s Economy: Know More, Act Better, Enhance Results. The project aims to foster climate-smart agriculture through the use of geographic information system (GIS) technology, improving farmland management and bolstering food security in Kyrgyzstan. According to the EBRD, the initiative is supported by its Food and Agribusiness team and involves close cooperation with three key local aggregators: Kaindy-Kant (sugar beet processing), Kirbi (potato processing), and Dan Agro (pulses and legume processing). Together, these partners will help extend the project’s reach to more than 5,000 farmers. Harnessing GIS Technology The GIS platform will be managed by Kyrgyzstan’s State Agency for Land Resources, Cadastre, Geodesy and Cartography. It will be accessible to stakeholders across the agricultural sector, including the Ministry of Water Resources, Agriculture and Processing Industry, as well as farmers and aggregators. The system will enable users to identify sown crops, assess land-use efficiency, estimate productivity, and monitor crop rotation and sustainable water use. With additional funding from the Ministry of Digital Development, the State Agency will also develop a mobile application to improve access and facilitate the adoption of GIS tools at the grassroots level. Meanwhile, the EBRD and FAO will roll out a free e-extension application to provide advisory services to farmers. This collaboration promises substantial benefits for Kyrgyzstan, where agriculture employs nearly half the workforce and contributes approximately 12% of the national GDP. Broader Impact and Expectations The initiative is also expected to deliver environmental gains by enhancing efficiency in a sector responsible for roughly 37% of Kyrgyzstan’s greenhouse gas emissions. These efforts align with the country’s Paris Agreement target of cutting emissions by 16% by 2030. In addition to supporting environmental goals, the project is set to improve food security for Kyrgyzstan’s growing population, projected to reach 9.6 million by 2050. The data-driven approach to land management is designed to help rural communities adapt to climate change, strengthen agribusiness supply chains, and contribute to sustainable economic development. Participating aggregators stand to benefit from access to more accurate planting data, which will improve harvest forecasting and help optimize financing strategies.