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Pensions

Kazakhstan Among Top 30 Countries for Pension System Quality

Kazakhstan has made significant strides in the latest Global Pension Report by international insurance group Allianz, climbing eight positions to rank 26th out of 71 countries. The country now places ahead of China, Turkey, Singapore, Spain, and Indonesia. According to analysts at Ranking.kz, Kazakhstan's rise reflects improvements across several dimensions of its pension system, which is the only one in Central Asia and among the Eurasian Economic Union (EAEU) states to be included in the Allianz ranking. Strong Performance on Global Pension Index The Allianz Pension Index (API), which underpins the ranking, assesses 40 indicators across three sub-indices: sustainability, adequacy, and integrity of pension systems. These include factors such as demographic trends, public debt, living standards, and the financial soundness of pension institutions. Scores range from 1 (best) to 7 (worst). Kazakhstan achieved an overall average score of 3.5, outperforming the global average of 3.7. It received particularly strong marks for sustainability (3.6) and adequacy of payments (3.2), signaling resilience and fairness in pension distribution. By comparison, top-ranked countries include Denmark (2.3), the Netherlands and Sweden (2.6 each), and Japan (2.7). Other leading performers are New Zealand, Israel, Australia, the United Kingdom, Norway, and the United States. At the bottom were Laos, Malaysia, and Sri Lanka, all with scores above 4.6. The Evolution of Kazakhstan’s Pension Model Kazakhstan transitioned from the Soviet-era pay-as-you-go system to a multi-tiered pension model in 1998. The current system combines distributive and accumulative components, with payments derived from three main sources: State budget: Covers solidarity and basic pensions. Mandatory savings: Contributions to the Unified Accumulative Pension Fund (UAPF), including 10% of employees’ salaries and 5% employer contributions for hazardous jobs. Voluntary contributions: Optional payments by individuals or employers. As of January 1, 2024, a new tier, mandatory employer pension contributions (MEP), was introduced. These contributions will gradually increase to 5% of wages by 2028 and apply to citizens born in 1975 or later. Long-Term Trends and Global Context Globally, pension systems are shifting toward accumulation-based models. In 2000, distributive pensions made up more than 65% of total payouts. By 2024, this figure is projected to fall below 50%. Kazakhstan was the first among CIS countries to adopt an accumulative system and is now seen as a regional leader in pension reform. Allianz experts highlight the growing importance of such systems in the face of demographic change. The United Nations projects that by 2050, the global population aged 65 and over will nearly double, from 857 million to 1.58 billion. The dependency ratio is expected to rise to 26 pensioners for every 100 working-age individuals, up from 16 today. To ensure long-term viability, experts argue for a balanced approach that combines state-funded and private accumulative elements. In Kazakhstan, approximately 2.5 million people currently receive pensions.

Energy

Kazakhstan Second Only to Russia in CIS for Gasoline Purchasing Power

Kazakhstan ranks 36th out of 124 countries in a global gasoline affordability index based on average monthly earnings, according to recent data from Numbeo and analysis by Energyprom.kz. The study assesses how many liters of gasoline a person can buy with an average monthly salary and compares this indicator across the Commonwealth of Independent States (CIS) and globally. Kazakhstan Among CIS Leaders in Fuel Affordability According to the report, the average Kazakhstani can purchase approximately 1,100 liters of gasoline per month based on their salary. This places Kazakhstan second among CIS countries, trailing only Russia, where the average salary covers about 1,140 liters, ranking 34th worldwide. Belarus follows with 801.3 liters, then Azerbaijan (677.9 liters), Kyrgyzstan (483.9 liters), Moldova (476.6 liters), Uzbekistan (461.3 liters), Armenia (450.3 liters), Ukraine (341.4 liters), and Tajikistan (223.8 liters). Globally, Libya leads with a staggering 10,100 liters, followed by Kuwait (8,900 liters) and Qatar (6,600 liters). In contrast, Syria ranks last, where the average salary can buy just 22.1 liters. Cuba (28.5 liters) and Côte d'Ivoire (112.3 liters) also rank among the lowest. Global Gasoline Prices: Kazakhstan Remains Among the Most Affordable Kazakhstan is also one of the countries with the lowest fuel prices, around $0.50 per liter. Cheaper fuel is found in Libya ($0.03), Egypt and Algeria ($0.30), Kuwait ($0.40), and Malaysia ($0.50). By comparison, the most expensive gasoline is in Hong Kong at $3.10 per liter, followed by Iceland ($2.40), and Singapore, the Netherlands, and Switzerland (all around $2.20). Price Trends in Kazakhstan In April 2025, gasoline prices in Kazakhstan rose by 0.4% compared to the previous month and by 2.2% year-on-year. Prices for premium grades, AI-95/96 and AI-98, increased by 0.1% month-over-month, while AI-92 rose by 0.4%. On an annual basis, AI-92 increased by 1.8%, AI-98 by 3.2%, and AI-95/96 by 4.3%. The Zhambyl region saw the highest monthly increase at 1%, followed by the Abai and Turkestan regions and Shymkent (all at 0.8%). North Kazakhstan recorded the smallest increase (0.1%), while prices remained unchanged in Aktobe, Ulytau, and Almaty. The West Kazakhstan region saw a slight price decline of 0.1%. Year-on-year, the highest price growth was observed in West Kazakhstan (4.8%), Aktobe (4.1%), and Shymkent (3.1%). The most modest increases were recorded in Almaty (0.9%), Akmola (1.1%), and Zhetysu (1.7%). Production, Pricing, and Export Data In April 2025, the average price per liter of AI-92 was 205 KZT ($0.40), AI-95/96 stood at 264 KZT ($0.52), and AI-98 at 299 KZT ($0.59). The highest AI-92 prices were in Petropavlovsk ($0.41), and the lowest in Atyrau ($0.38). Taldykorgan had the most expensive AI-95/96 ($0.54), while Atyrau offered the lowest ($0.48). AI-98 was priciest in Almaty ($0.62) and cheapest in Aktobe ($0.56). In the first two months of 2025, domestic producers met 99.99% of the nation’s gasoline demand. Kazakhstan produced 1.1 million tons of gasoline, a 20.8% year-on-year increase. Imports totaled only 101.8 tons, down 8.1%. The country exported 6,700 tons of gasoline during this period, all to Uzbekistan. Supplies to the domestic market...

Air Quality

Kazakhstan’s Air Quality Stagnates Despite Emission Reforms

Over the past two decades, air pollution levels in Kazakhstan have remained persistently high, despite numerous reform pledges and reported reductions in specific emissions. This is the conclusion of a recent study by analysts at Ranking.kz. Half the Country at Risk According to 2025 data from the international service Numbeo, Kazakhstan ranked 30th out of 113 countries in urban air pollution, with an index of 73.2 out of 100. This marks only a modest improvement from a 2013 peak of 79.6. Neighboring Russia and Uzbekistan fared better, with scores of 59 and 54, respectively. Kazhydromet, Kazakhstan’s meteorological service, reported that in 2023, only 23 of the 70 surveyed cities and towns were considered relatively environmentally friendly. Of these, just four were regional centers; the rest were smaller towns and villages. The remaining 47 locations displayed elevated or critically high pollution levels. Astana, Almaty, Karaganda, and Ust-Kamenogorsk were cited as the most concerning. In these cities, pollution has either stagnated or worsened since 2005. Karaganda’s Air Pollution Index (API) rose from 13.9 in 2005 to 16 in 2023. Astana’s API nearly doubled, from 3.7 to 7. Although Almaty exited the “red” zone, it remains categorized as having elevated pollution. In November 2023, Ust-Kamenogorsk authorities moved schoolchildren to remote learning due to thick smog, the first such decision on environmental grounds. Senators Olga Bulavkina and Shakarim Buktugutov proposed declaring the city an ecological disaster zone, but the government dismissed the need for a special commission. The Emissions Paradox According to the National Statistics Office, total pollutant emissions, comprising solid, liquid, and gaseous substances, declined from 3 million tons in 2005 to 2.3 million tons in 2023, a 24% decrease. However, greenhouse gas emissions increased by over 45% during the same period, rising from 233.8 million tons to 340 million tons, according to the international database OurWorldinData. This surge contradicts Kazakhstan’s commitments under the Paris Agreement, which it joined in 2016. The primary culprits remain unchanged: coal-fired thermal power plants. In 2023, stationary sources accounted for 2.2 million tons of the 2.3 million total emissions. The number of such sources has more than doubled since 2005, reaching 233,800. Between Optimism and Routine In a bid to reverse the trend, Kazakhstan has approved a national strategy to achieve carbon neutrality by 2060. The plan targets a reduction in greenhouse gas emissions to 324.4 million tons by 2030, with full carbon neutrality by mid-century. Measures include expanding renewable energy, constructing nuclear power plants, and integrating low-carbon technologies in industry. Despite these ambitions, emissions have yet to return even to 2005 levels. While some progress has been made, it is not enough to offset broader environmental deterioration. In the country’s largest cities, residents continue to breathe air laced with harmful pollutants, contributing to increased cancer rates and a declining quality of life. If Kazakhstan succeeds in implementing even part of its environmental roadmap, then perhaps within the next decade, smog alerts, pollution spikes, and remote learning due to air quality may become rare exceptions rather than...

Economy

Tajikistan Has the Harshest Fines Relative to Income in Central Asia

Tajikistan ranks first among Central Asian countries in the ratio of maximum fines to average salaries, a disparity that has sparked growing dissatisfaction among the population. Structure and Scale of Fines Fines in Tajikistan fall into two categories: administrative and criminal. Administrative fines apply to less serious infractions, such as traffic violations, breaches of sanitary rules, and disorderly conduct. Criminal fines, by contrast, target serious offenses including fraud, tax evasion, and property crimes. Administrative penalties are more common and tend to disproportionately impact ordinary citizens. As of January 1, 2025, the minimum administrative fine for individuals and sole proprietors is 75 Tajikistani somoni (TJS), or approximately $7.20. For government officials, the minimum fine is 225 TJS ($21), and for legal entities it is 750 TJS ($72). The upper threshold for administrative fines is capped at $780 for individuals, $1,400 for officials, $2,120 for entrepreneurs, and $7,200 for legal entities. Regional Comparisons Compared to its neighbors, Tajikistan's fine-to-salary ratio is starkly higher. In Kazakhstan, the maximum fine for individuals is roughly $1,537, or about 80.5% of the average monthly salary ($851 as of January 2025). In Kyrgyzstan, the maximum individual fine of approximately $229 represents just 50.9% of the average salary ($450). In Uzbekistan, where the maximum individual fine is limited to $145, it amounts to about 35% of the average salary of $414. In contrast, the maximum administrative fine in Tajikistan for individuals exceeds the country’s average monthly income by more than 2.8 times, placing it at the bottom of the regional ranking in terms of fairness and affordability. Calls for Reform Experts have proposed that Tajikistan consider adopting a proportional system of fines based on the offender’s income. Such systems, already implemented in various European countries, aim to ensure that penalties are equitable across income groups. In Finland, traffic fines are linked to annual income; in Sweden and Norway, they depend on monthly earnings. Other countries, including Germany, Switzerland, Austria, and France, also tailor financial penalties to income. Estonia and Latvia have initiated similar reforms, signaling a broader European trend. Adopting such a model in Tajikistan could improve perceptions of justice and encourage compliance with laws, particularly among higher-income groups. However, experts caution that successful implementation would require sweeping legal reforms, along with mechanisms to accurately monitor and verify income levels.

Healthcare

Uzbekistan Tops Central Asia in 2024 Healthcare Ranking

Uzbekistan has been ranked as having the best healthcare system in Central Asia, according to the 2024 Health Care Index published by CEOWORLD magazine. The country placed 64th globally with a score of 36.26. Kazakhstan followed in 78th place with 34.28 points, while Turkmenistan ranked 95th with 27.3 points. The index evaluates 110 countries based on the quality of healthcare services, including infrastructure, the competency of medical professionals, and access to care. Taiwan topped the global list with a score of 78.72, while El Salvador came in last with 18.6 points. Other countries ranking in the top 10 include South Korea (2nd), Sweden (5th), and Germany (8th). Healthcare and Tourism Growth The report coincides with a notable increase in foreign tourism to Uzbekistan. In January–February 2025, the country welcomed 1.3 million international visitors, a 37.1% increase compared to the same period in 2024. Officials suggest that improved healthcare services could further enhance the country's appeal as a travel destination, potentially boosting medical and wellness tourism. Uzbeks Rank High in Global Happiness Index In another recent international ranking, Uzbekistan also stood out for overall wellbeing. The Centre for the Study of Wellbeing at the University of Oxford and the Gallup Institute placed Uzbekistan 53rd in its global happiness index, above Kyrgyzstan and Tajikistan. The study includes two key components. The first is based on respondents' self-assessment of life satisfaction on a scale from 0 to 10; in Uzbekistan, the average score was 6.2. The second examines responses related to charitable giving, lawfulness, helping strangers, and reactions to emotional experiences, both positive and negative.

Critical Minerals

Kazakhstan Strengthens Position in Global Critical Minerals Market

Kazakhstan has the potential to ensure a stable supply of critical minerals essential for the global energy transition and the expansion of the electric vehicle market, according to analysts at the Astana International Financial Center (AIFC). An AIFC study highlights Kazakhstan’s competitive advantages in exporting copper, zinc, aluminum, silver, and lead. Additionally, nickel, gold, lithium, and rare earth metals are seen as promising sectors for export expansion. Kazakhstan holds a 5% share of the global zinc market, ranking seventh in reserves with 6.7 million tons. In 2022, Turkey, Russia, and China accounted for 70% of Kazakhstani zinc exports. The country also controls about 4% of the global copper market, with 20 million tons in reserves, placing it 11th worldwide. Its main copper buyers in 2022 were China, Turkey, and the UAE. Kazakhstan ranks eighth globally in lead reserves (2 million tons) and 12th in production, with 40,000 tons mined in 2021. Global lead demand is projected to rise from 11.6 million tons in 2022 to 13.4 million tons by 2031. In the silver market, Kazakhstan holds the third-largest reserves, accounting for 2.7% of global supply. In 2023, Kazakhstan ranked 11th in global bauxite reserves (160 million tons) and 10th in production (4.3 million tons), though its aluminum market share remains below 1%. The primary destinations for aluminum exports are Turkey, Italy, and Greece. Meanwhile, Kazakhstan is among the world’s top 20 nickel-producing countries, holding reserves of approximately 1.5 million tons, or 2% of global reserves, though its market share remains small. The country is also actively exploring lithium deposits in collaboration with companies from Germany, the UK, and South Korea. In March 2024, South Korean specialists discovered a lithium deposit in East Kazakhstan with a content of 5.3%, valued at an estimated $15.7 billion. Kazakhstan has also strengthened its position in the critical minerals market through international agreements. It recently signed a contract with the European Union worth €3 million for the supply of essential raw materials.