Sadyr Japarov - The Times Of Central Asia

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Tamchy Special Financial Investment Territory

Kyrgyzstan Launches Tamchy Financial Zone to Attract Foreign Capital

Kyrgyzstan officially inaugurated the Tamchy Special Financial Investment Territory (SFIT) on July 3 on the northern shore of Lake Issyk-Kul, marking the launch of a new investment zone designed to attract foreign capital and position the country as a regional financial and business hub. Located near the village of Tamchy and close to Issyk-Kul International Airport, the SFIT operates under a separate legal framework aimed at attracting domestic and international investment, improving Kyrgyzstan's investment climate, and supporting growth in manufacturing, tourism, wellness services, and transport infrastructure. The zone also features an independent international dispute resolution center operating under English common law. The Tamchy SFIT covers approximately 6,000 hectares. Companies registered within the zone will operate under English common law, benefit from a zero-tax regime for 49 years, and be allowed to repatriate 100% of their profits. Speaking at the opening ceremony, President Sadyr Japarov expressed confidence that the Tamchy SFIT would become a regional and global investment platform. "According to forecasts, the project will gradually gain momentum, and by 2035, more than 3,900 resident companies are expected to operate in this investment territory, creating over 10,000 new jobs," the president said. Japarov also pointed to the project’s economic impact. "When companies enter the financial investment territory, they bring new orders for builders, suppliers, transport companies, hotels, restaurants, service organizations, farmers, and entrepreneurs. Thus, this project provides jobs for our people, new opportunities for businesses, and new sources of economic growth for the state," he said. The president said the zone’s legal and regulatory framework draws on the experience of several leading international financial centers. He named Dubai and Singapore, and also cited Luxembourg. "We've adopted proven models from these countries' experience and sought to combine them with the national advantages of the Kyrgyz Republic, the unique location of Lake Issyk-Kul, and our human potential," Japarov said. A central feature of the new investment zone is its independent International Center for Dispute Resolution operating under English law. "This important step will significantly enhance trust in the project and make the SFIT's legal framework one of its key competitive advantages," the president said. Japarov also stressed that economic development in the zone would not come at the expense of the environment. "The development of the Tamchy special territory will be carried out with full consideration of the lake's conservation requirements and its unique natural environment. Issyk-Kul is a natural gem, our national treasure, and a symbol of the country. Whatever projects are implemented in the Tamchy special territory, they will be carried out only in compliance with environmental requirements and under strict oversight," he said. During the ceremony, the president presented certificates to the first five resident companies representing the UAE, Hong Kong, Switzerland, Kazakhstan, and South Korea. The organizers also announced registration fees and licensing costs for companies operating in the zone. Company registration within SFIT will cost a minimum of $525, while registration of investment funds starts at $975. According to the organizers, businesses operating within SFIT will be able to...

Kamchybek Tashiyev

Kyrgyz Court Convicts Former Security Chief Tashiyev, Parliamentary Speaker, and Six Others

The trial of high-ranking Kyrgyz officials accused of plotting to overthrow the government concluded on July 2. All eight defendants, including the former chief of Kyrgyzstan’s security service and the former speaker of parliament, were found guilty and sentenced to four years in prison. However, none will actually serve any prison time as the court ordered them all placed on probation for the next three years. The Letter of 75 It all started on February 9, 2026, when a group of 75 people, including former state officials, released an open letter calling on President Sadyr Japarov and Speaker of Parliament Nurlanbek Turgunbek uulu to call an early presidential election. Japarov became acting president in the wake of the October 2020 protests that ousted President Sooronbai Jeenbekov. One of his first moves as acting president was to appoint his long-time friend Kamchybek Tashiyev to be the head of the State National Security Service (GKNB). The presidential election of January 2021 resulted in victory for Japarov, with a concurrent vote approving a change from a parliamentary to a presidential form of government. A new constitution was drafted and approved in a referendum in April 2021. Japarov was elected president under the constitution that was scrapped in that referendum. The previous constitution stipulated a president could serve one six-year term in office. The new constitution allowed a president to serve two five-year terms. The open letter the 75 people published said a snap presidential election could clarify Japarov’s term. But Japarov and others saw the letter as an attempt to oust him from power. On February 10, Japarov sacked Kamchybek Tashiyev and several of the authors of the open letter were detained, with Japarov saying this was necessary to “prevent a split in society.” Japarov was evasive about the reason, repeating that he and Tashiyev remained friends. In the days that followed, a series of top GKNB officials were dismissed, as were the governors of Kyrgyzstan’s second and third largest cities, Osh and Manas (formerly Jalal-Abad), respectively. Several ministers and officials in other state bodies were also changed. The government was restructured so that the GKNB was under the control of the president. Tashiyev was in Germany for a medical exam, and Turgunbek uulu was in Turkey when the open letter was released. Turgunbek uulu stepped down from his position and handed in his resignation as a parliamentary deputy directly after his returned to Kyrgyzstan. Tashiyev returned briefly on February 13, but only stayed in Kyrgyzstan for a few days before again leaving the country. He finally came back on March 19 for questioning by the Interior Ministry and has been in Kyrgyzstan since then, though he kept a low profile. It was clear early on that the state prosecutor was building an attempted coup case against some of the 75 authors of the letter. But Japarov and other officials declined to specify which charges Tashiyev might face, or whether he would face any charges at all. The announcement that Tashiyev was dismissed...

Kazarman Hydropower Cascade

Turkish Company Launches Construction of $3 Billion Hydropower Cascade in Kyrgyzstan

Construction of the Kazarman cascade of hydroelectric power plants on Kyrgyzstan’s Naryn River officially began on June 25, marking one of the country’s largest energy infrastructure projects since independence. The project, located in the Jalal-Abad region, includes three hydropower plants, Ala-Buga, Kara-Bulun-1, and Kara-Bulun-2, with a combined installed capacity of 912 megawatts and expected annual electricity generation of more than 3.75 billion kilowatt-hours. The cascade is being developed under an investment agreement with Orta Asya Investment Holding, a subsidiary of Turkey’s İhlas Holding, with total investments estimated at $3 billion. At the official launch ceremony, Kyrgyz President Sadyr Japarov described the Kazarman cascade as one of the largest energy projects in the country’s modern history. Japarov said Kyrgyzstan is accelerating hydropower and renewable energy development to strengthen energy security and reduce dependence on electricity imports. “Without developing the electric power industry, it is impossible to ensure the country’s sustainable development,” Japarov said. He noted that Kyrgyzstan imported about 3 billion kWh of electricity during winter in 2020, a figure that has now risen to 4 billion kWh, reflecting growing domestic demand. According to Japarov, electricity consumption continues to outpace new generation capacity despite ongoing construction of small and medium-sized hydropower plants, as well as solar and wind energy facilities. The president said the increase in demand is driven by rapid industrial expansion, with hundreds of new factories and social infrastructure facilities commissioned annually in recent years. Construction of the Kazarman cascade is scheduled for completion by 2031. Japarov said that once the Kazarman cascade and the strategic Kambarata-1 Hydropower Plant become operational, Kyrgyzstan expects to fully cover domestic electricity demand and begin exporting surplus energy to neighboring countries. Kambarata-1, which is being developed jointly with Kazakhstan and Uzbekistan, will have an installed capacity of 1,860 MW and annual generation of 5.6 billion kWh. In addition to the Kazarman project, İhlas Holding is also involved in building a 250 MW gas-fired combined heat and power plant in Bishkek. The company is further expanding its energy footprint in Kyrgyzstan through the Suusamyr-Kokomeren hydropower cascade, for which the Eurasian Development Bank and Orta Asya Investment Holding signed a feasibility study agreement in September 2025. That project will include three hydropower plants with a combined capacity of 1,305 MW. Under the agreements, Orta Asya Investment Holding will operate the facilities for 20 years, while Kyrgyzstan guarantees the purchase of the generated electricity.

Government Securities

Kyrgyzstan’s President Urges Citizens to Invest in Government Securities

President Sadyr Japarov has called on citizens of Kyrgyzstan to invest in government securities, describing them as one of the country’s most reliable investment instruments because they are backed by the state. In a statement on his Facebook page, Japarov announced what he described as “an important initiative that will allow every citizen to improve their financial situation while contributing to the development of Kyrgyzstan.” The Cabinet of Ministers has made government securities available to the public with an annual interest rate of 17%, according to Japarov. The securities can be purchased through a mobile app, he said. Invested funds will be repaid in full after two years, with interest payments made every three months. Japarov said returns on government securities would exceed those offered by most bank deposits. Deposit rates at commercial banks in Kyrgyzstan generally range from around 10% to 14% per year for deposits in the national currency, depending on the bank and product. Some microfinance organizations offer higher rates. Two types of government securities are available through the Kyrgyz Stock Exchange: state treasury bills and state treasury bonds. The National Bank of the Kyrgyz Republic also publishes auction results for government securities, with recent state treasury bond yields ranging from 12.86% to 16%, depending on maturity. Government securities are issued to finance national projects, cover budget deficits, and refinance maturing government debt.

Bloggers

Kyrgyzstan Proposes Blogger Tax Breaks as Kazakhstan Tightens Scrutiny

Kyrgyzstan and Kazakhstan are taking sharply different approaches to the growing influence of bloggers. In Bishkek, President Sadyr Japarov has signed a decree calling for tax incentives for the IT sector, startups and creative industries, including bloggers, a move that has sparked criticism even from content creators themselves. In Astana, meanwhile, authorities are intensifying scrutiny of influencers’ income and using criminal law in high-profile cases involving online figures. Kazakh tax authorities have continued scrutinizing the earnings of popular bloggers, alongside high-profile enforcement cases. In addition, journalists and other online voices in Kazakhstan have faced prosecution under Article 274 of the Criminal Code, which concerns the dissemination of knowingly false information and carries the possibility of a prison sentence. Japarov’s Tax Initiative Sparks Debate Kyrgyz President Sadyr Japarov’s initiative to introduce tax breaks for the IT sector, startups, and representatives of the creative industries has sparked broad public debate. The decree, signed on June 12 and titled “On Measures to Improve the Tax System and Tax Administration,” calls for broad changes to tax legislation, including five-year tax holidays for several categories of business. Under the decree, companies and entrepreneurs working in software development, information systems, and artificial intelligence may be exempt from number of taxes for five years. The proposed benefits would also extend to startups, outsourcing companies, producers of film, video and television content, bloggers, remote employees of foreign companies, and other creative-industry workers. Under the same preferential regime, authorities also plan to set income tax at 5% and social security contributions at 12% of the average monthly wage for these categories. Kyrgyzstan’s State Tax Service says the new measure will help position the country as a regional center for IT and creative industries, including artificial intelligence. The agency expects the tax incentives to attract investment, stimulate the creation of new startups and increase exports of digital services. Supporters of the initiative argue that reducing the tax burden could provide an important boost for young entrepreneurs and technology companies, allowing them to direct more resources toward product development, the introduction of new technologies, and improved competitiveness. Authorities also hope the measure will help retain young specialists in the country and make Kyrgyzstan more attractive to international companies. At the same time, the proposal has drawn criticism, particularly over the inclusion of bloggers among those eligible for tax benefits. Social media users have questioned why the state is granting tax breaks to content creators while doctors, teachers, and other socially important professions continue to pay taxes in full. Kyrgyz blogger and entrepreneur Ilim Karypbekov has publicly opposed exempting bloggers from taxes. He said content creators earning money from advertising should pay taxes on the same basis as other entrepreneurs. Karypbekov said he supports tax incentives for the IT sector but believes it is a mistake to extend them to bloggers. “If I earned 100 soms, I would give four soms to the state. That is a very small amount,” Karypbekov said, adding that many popular bloggers generate substantial advertising revenue and...

Border disputes

UN General Assembly Adopts Kyrgyzstan-Led Resolution on Border Disputes

On May 20, the United Nations General Assembly adopted by consensus a Kyrgyzstan-backed resolution titled “Peaceful Settlement of Border Disputes,” Kyrgyzstan’s Foreign Ministry announced. More than 40 countries co-sponsored the document. The resolution was presented by Kyrgyzstan jointly with Tajikistan and Uzbekistan. According to the ministry, the main purpose of the resolution is to share with the international community the historic achievement of the three Central Asian countries in resolving border disputes through peaceful means, including dialogue and negotiations, in accordance with the UN Charter and international law. The resolution proposes what Kyrgyz officials described as a simple and universal principle: when states face border disputes, the way forward should be peaceful, lawful, and based on dialogue. According to the ministry, the Central Asian achievements highlighted in the resolution offer the international community an example of good-neighborly relations and peaceful dispute resolution. The adoption of the resolution is another confirmation of the ability of Kyrgyzstan and its neighbors to peacefully resolve complex issues that had remained unsettled for decades, the ministry stated. Kyrgyzstan, Tajikistan, and Uzbekistan have recently resolved long-standing border delimitation disputes in the Ferghana Valley inherited after the collapse of the Soviet Union. During a summit in Khujand, northern Tajikistan, on March 31, 2025, Kyrgyzstan’s President Sadyr Japarov, Tajikistan’s President Emomali Rahmon, and Uzbekistan’s President Shavkat Mirziyoyev signed a historic agreement on the junction point of the three countries’ state borders, effectively ending decades-long territorial disputes. The three leaders also inaugurated the Friendship Stele, marking the exact point where the borders of the three countries meet. The monument symbolizes friendship among the three nations, the resolution of long-standing border issues, and a new stage of regional cooperation. The Times of Central Asia previously reported on Kyrgyzstan’s initiative to establish the Dostuk (Friendship) International Trade and Economic Park jointly with Tajikistan and Uzbekistan in the border area where the three countries meet. The proposed project is expected to increase cross-border trade, attract investment, and create new economic opportunities across the region.