Bishkek launches plan to reboot economy

The government wants to make the legal framework more transparent to encourage the inflow of foreign investments. Besides China, Japan and South Korea, the Kyrgyz are courting Turkey and Arab countries. President Zaparov promises all forms of protection for those who want to do business in Kyrgyzstan.

Moscow (AsiaNews) - The Kyrgyz Council of Ministers has outlined its plan to get out of the economic crisis, creating all conditions to improve the investment climate and make fiscal policy transparent. In the first half of 2022, Kyrgyzstan saw 8 million in foreign investments flow in, compared to outflows of 3 million. Entrepreneurs insist that as long as there is no independent legal system in the country, business will continue to migrate abroad.

Most of the investments in Kyrgyzstan come from China, around 0 million, outstripping Russia at 0 million. Compared to last year, the positive flow appears to have doubled, when there were 321 million incoming and 548 million outgoing.

At the Investors' Forum (Vif) held in Bishkek in recent days, Deputy Premier Bakyt Torobaev tried to reassure participants by talking about the figure of the 'digital nomad' and entrepreneurs' assistance centres to help all those who have good initiatives to propose and develop. For those working in the construction industry, procurement procedures will be simplified, with the new 'one-stop shop' available.

The most flourishing years for investments in Kyrgyzstan were 2015, 2019 and 2021, when the billion dollar mark was exceeded, while in 2020 the pandemic had halved the flow to 537 million. The Kyrgyz reiterate that they are open to cooperation with foreign investors, guaranteeing them conditions of security and intangibility of property. In March, President Zaparov had signed a decree to raise the country's investment potential, and a National Investment Agency was created.

The Agency's director, Umbriel Temyraliev, spoke at the forum, explaining that 'throughout the world today there is great instability, for reasons that are well known, but we are also trying to attract investments from Arab countries such as Bahrain, Qatar and Saudi Arabia, as well as from China, Japan and South Korea, of course'. All these partners have expressed a willingness to work with Kyrgyzstan, despite fears of international conflicts.

From Russia, however, there is a movement of entrepreneurs trying to get their companies out, to escape sanctions, and many are relocating to Central Asia and Kyrgyzstan itself. Turkey is also very active in the country, and outgoing investments of 1 million have been directed towards Ankara. The president of the Council for International Affairs, Askar Sydykov, commented that 'internal political instability and widespread corruption are the factors that make a lot of capital flee'.

The Kyrgyz themselves often prefer to shelter their earnings in Kazakhstan, Turkey or the Arab countries, because 'money has no nationality', Sydykov notes, 'and it circulates better where the rules of the game are clear'. This is why Zaparov never misses an opportunity on his international trips to promise every form of protection for those who want to do business in Kyrgyzstan.

As the economist Iskender Sharsheev warned, 'today there is a lot of competition at the international level, everyone is trying to attract investments in their own region, offering advantages and tax privileges', and he too referred to the importance of having a transparent and balanced legal system. Economy Minister Eldar Abakyrov also agreed with these conclusions, 'the utmost attention must be paid to justice and freedom in the country'.