Economic week of Kyrgyzstan – Oct. 7 – 13, 2019

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The past week was marked by important events that attracted the attention of the entire society. Such as, for example, issues of raising tariffs for customs clearance of vehicles, the first appearance on the stage of the business community of newly elected business ombudsman of the Kyrgyz Republic, the beginning of establishing tourist relations in the border crisis regions with a neighboring country, the rapid growth in the number of payment card holders in the country, etc. In addition the Arab country volunteered to become a bridge for goods from Kyrgyzstan to the countries of the Arab world, and business guests from India became interested in defense products from Kyrgyzstan. In general, the events of the week showed the business spirit of the country's economic sphere.

Joint tourism. The week began with a business forum with partners in Tajikistan. The Tourism Business Forum of Kyrgyzstan and Tajikistan was held for the first time in the Tajik city of Khujand, with the assistance of the Embassy of Kyrgyzstan and chaired by the Department of Tourism under the Ministry of Culture, Information and Tourism of the Kyrgyz Republic, as well as the Tourism Development Committee under the Government of Tajikistan.

The event was attended by representatives of Kyrgyz and Tajik companies.

The parties discussed and considered the issues of interaction and cooperation between government agencies in charge of the tourism sector and travel companies.

Payment cards. The number of payment card holders increased in Kyrgyzstan by 21.7% over the year and made in total 2.8 million.

Head of the National Bank of Kyrgyzstan Tolkunbek Abdygulov said that within the framework of the Year of Regional Development and Digitalization announced by the President of Kyrgyzstan in 2019, the work is ongoing in the banking sector on the distribution of payment cards for use by the population.

Goods per week. More than 10 thousand tons of domestic products were exported over the past week, from Sept. 30 to Oct. 4. The Plant Quarantine Department of the Ministry of Agriculture, Food Industry and Land Reclamation of Kyrgyzstan inspected exported goods to Russia and Kazakhstan.

1615.5 tons of dried fruits were exported to Russia, Kazakhstan, Turkey, 828 tons of nuts to Russia and Turkey, 2894.7 tons of beans to Turkey, Bulgaria, Russia and the Netherlands, more than 11 tons of potatoes to Kazakhstan, 246.7 tons of cotton Belarus, Russia and Turkey, said Ilich Marsbek uulu, director of the Plant Quarantine Department of the Ministry of Agriculture, Food Industry and Land Reclamation of the Kyrgyz Republic.

The official noted that no violations were found as a result of the audit. All goods were delivered to the address, not a single cargo was returned.

Business ombudsman’s statement. Newly elected Kyrgyz Business Ombudsman Robin Ord Smith promised this week to work closely with the business community at a meeting of the Business and Investment Development Council, where he was introduced to the participants by Kyrgyz Prime Minister Mukhammedkalyi Abylgaziev.

Robin Ord Smith said that he worked as the British Ambassador to Kyrgyzstan and therefore knows this direction well.

“I look forward to starting my duties. I will work closely with business structures,” he said adding to fully support the efforts of the government aimed at improving the investment and business environment.

The business ombudsman said that they had already developed and shared their vision of the business structure.

Meanwhile, it became known that Sergey Ponomarev and Nurlan Musuraliev, became deputy business ombudsmen. They were appointed by order of the prime minister of the Kyrgyz Republic.

Expensive customs clearance. This week it was officially announced that from Jan. 1, 2020, customs clearance of cars in Kyrgyzstan will increase by almost 11 times.

The State Customs Service of the Kyrgyz Republic announced that on Dec. 31, 2019, the preferential rates of customs duties for vehicles imported by individuals for personal use from third countries expire.

“From Jan. 1, 2020, the tariffs approved by the decision of the Eurasian Economic Commission on Dec. 20, 2017 will come into force in Kyrgyzstan,” the Customs Service noted.

Thus, for example, the cost of a 2009 Toyota Camry customs clearance with an engine capacity of 2.5 thousand cubic centimeters will increase from 1250 US dollars to 13 600 US dollars.

Minister of Economy of the Kyrgyz Republic Sanjar Mukambetov tried to calm the excitement in society caused by this news. “It is possible to apply to the EEC to extend the period of preferential rates of customs duties on vehicles imported by individuals for personal use from third countries,” Mukanbetov said at a meeting of the parliament.

He said that various consultations are currently underway.

GDP for 9 months. Kyrgyzstan's GDP in January-September 2019 amounted to more than 398 billion soms and increased by 6.1% compared to the same period last year.

According to data of the National Statistics Committee of the Kyrgyz Republic, excluding enterprises developing the Kumtor field, the country's GDP in January-September 2019 amounted to about 356 billion soms and increased by 3.2%. “The volume of industrial production amounted to more than 196 billion soms and compared to the same period last year increased by 16.5% due to an increase in the production of basic metals - by 39.2%, in textile production - by 30.1%, and mining of metal ores - by 26.7%, as well as crude oil and natural gas production - by 14.1%,” the National Statistics Committee of the Kyrgyz Republic reported.

Positive trends in the republic were observed in agriculture, where the growth in volumes was 1.8%, in construction - 9.0%, in wholesale and retail trade - 4.6%.

The situation in the industry. Industrial production for 9 months of 2019 amounted to 196 billion soms and increased by 16.5% compared to the previous year.

According to data of the National Statistics Committee of the Kyrgyz Republic, the growth rate in industry amounted to 116.2%, excluding enterprises for the development of the Kumtor deposit - 98.5%. The share of industry in GDP was 20.4%.

“In the structure of industrial production by type of economic activity, manufacturing is 79.8%, production of basic metals and finished metal products in manufacturing is 46.8%. An increase in the physical volume of industrial production was noted in all regions of the republic,” the National Statistics Committee of the Kyrgyz Republic said.

Trade with the world. The foreign trade turnover of Kyrgyzstan for 9 months of 2019 amounted to 4.4 billion US dollars.

According to data of the National Statistics Committee of the Kyrgyz Republic, compared with the same period last year, there was a decrease in the volume of trade by 4.6%, while export deliveries increased by 10.8%, and import receipts, by contrast, decreased by 9.2%.

“The volume of mutual trade between the republic and the EAEU member states in January-August 2019 amounted to 1.7 billion US dollars. And compared with the same period in 2018, it decreased by 5.0%. At the same time, there was a decrease in both export deliveries by 8.0% and import receipts by 4.1%. The largest share of the republic’s mutual trade with the EAEU member states was in Russia, its share is 60.8% and Kazakhstan is 36.9%,” the National Statistical Committee of the Kyrgyz Republic said.

Guests from India. This week, specialists from the Indian Ministry of Defense and the enterprises of the defense industry of this country visited plant of Dastan TNK OJSC. They arrived in Kyrgyzstan with the aim of establishing cooperation in the framework of the Eurasian trade exhibition Namaskar and got acquainted with Dastan OJSC.

Representatives of Dastan made a video presentation of the plant's products for the guests and conducted a tour. The parties considered the prospects for cooperation.

Interest from Bahrain. This week, Minister of Economy of the Kyrgyz Republic Sanjar Mukanbetov met with Ambassador of the Kingdom of Bahrain, Dr. Anwar Yusuf Al-Abdullah.

At the meeting, the parties discussed the current state of trade and economic cooperation between Kyrgyzstan and Bahrain. Both sides noted the need to intensify cooperation in this direction.

The ambassador of Bahrain expressed interest in importing meat and agricultural products in general, and noted that in this matter Bahrain could become a window for Kyrgyzstan to the countries of the Persian Gulf, including Saudi Arabia.

He also informed about the absence of taxes for foreign investors to conduct business. They discussed such areas of interaction between the two countries as investment, financial and cultural-humanitarian.

Kabar News Agency

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