Economic week of Kyrgyzstan July 29 - Aug. 3, 2019

Trade facilitation. At a regular meeting of the Trade Facilitation Council in Bishkek, the State Customs Service of the Kyrgyz Republic presented the results of a study on the time of production of vehicles at the border, prepared with the technical assistance of international organizations - donors, the International Finance Corporation (IFC) and the German Society for International Cooperation (GIZ).
The participants of the meeting considered the issues related to simplifying and improving the process of interactions between state regulatory bodies regulating foreign economic activity at the border.
The transfer is necessary. This week it became known that the Investment Promotion and Protection Agency of the Kyrgyz Republic can be transferred to the Ministry of Foreign Affairs of the Kyrgyz Republic.
Director of the Information Department, the official representative of the Ministry of Foreign Affairs of the Kyrgyz Republic Ulanbek Dyikanbaev said that in order to carry out urgent and coordinated actions to attract foreign investments and implement projects under these agreements and signed bilateral documents, the ministry has initiated and prepared a package of documents on the transferring of the Agency to the Investments Attracting and Export Promotion Agency under the Ministry of Foreign Affairs of the Kyrgyz Republic.
Dyikanbaev emphasized that in the first half of 2019, overseas agencies of the Kyrgyz Republic made more than 19 presentations on the tourism potential of Kyrgyzstan. More than 30 bilateral meetings on tourism development were held, 10 special national stands on the Kyrgyz Republic were organized, participated in 20 tourism events, trade fairs, as well as specialized events like ITB (Berlin), MITT (Moscow), KITF (Almaty), Arabian travel market (Dubai). More than 121 meetings and events on promoting exports and investment potential have been held.
A pleasant surprise in digitalization. Chairman of the State Committee for Information Technologies and Communications of the Kyrgyz Republic Dastan Dogoнev visited the Central Asia International Digital Assets Exchange company and stated that he was pleasantly surprised by the work of the company. "In modern conditions, digitalization is no longer just a development trend, but an objective necessity. Information technology, digital transformation are the agents of technological change and a condition for the competitiveness of not only business, but also the state as a whole. For me, the technical equipment of the company was a surprise, and I was pleasantly surprised. So far, there is no such modern technology in Kyrgyzstan," Dogoyev said following the meeting.
According to him, the Central Age International Digital Assets Exchange has something to adopt and what can be used in the ordinary life of citizens. This includes the development of digital technology, artificial intelligence. This is also a good tool in the framework of fiscalization of the country, when every citizen knows and can track where the money goes.
Renewable energy sources are in focus. "Amendments to the legislation of the Kyrgyz Republic in the field of renewable energy sources provide for the creation of more favorable conditions for investment activities, as the coefficients of compensation for the difference for investors have been revised," Daniyar Imanaliev, Head of the Department for Strategic Development, Economics and Finance of the President’s Office of the Kyrgyz Republic, said in his commentary on the Law of the Kyrgyz Republic "On amendments to some legislative acts of the Kyrgyz Republic in the field of renewable energy sources." The law was signed by the President of the Kyrgyz Republic Sooronbay Jeenbekov and is coming into force.
The purpose of the Law is to establish legal grounds for the further development of economic and organizational legal relations in the energy sector, to attract direct investment in the field of renewable energy, to increase the efficiency of state regulation of this sector.
Energy is one of the priority sectors in the Development Strategy of Kyrgyzstan until 2040.
Elvira Borombaeva, Chairwoman of the Association of Small Hydroelectric Power Plants, emphasized in her comment that "small hydropower is very important for economic development. We are in third place in terms of water resources. In the framework of the Year of Regional Development and Digitalization, it is first of all necessary to develop our export opportunities, which means additional industrial facilities, jobs, improving the well-being of the people. Without an uninterrupted supply of energy, this cannot be done. "
Excise taxes on tobacco and vane. From now on, products with heated tobacco and nicotine-containing liquid are assigned to the excisable group of goods.
According to information published this week by the State Tax Service (STS) of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Amendments to the Tax Code of the Kyrgyz Republic" adopted on June 14, 2019, products with heated tobacco and nicotine-containing liquid are classified as excisable goods.
According to the provisions of the above Law, heated tobacco products (heated tobacco sticks, heated capsule with tobacco, etc.), nicotine-containing liquid in cartridges, tanks and other containers for use in electronic cigarettes are excisable.
Agreement with Kazakhstan. This week, in the city of Nur-Sultan, a meeting was held between chairman of the Customs Service of Kyrgyzstan Almaz Onolbekov and chairman of the State Revenue Committee of the Ministry of Finance of Kazakhstan, Marat Sultangaziev.
Following the meeting the parties agreed:
- on the application of uniform approaches to administering volumes of imports of goods;
- conducting a pilot on the use of navigation seals in transit of goods.
The parties noted that the results of the implementation of the Protocol of the 8th meeting of the Kyrgyz-Kazakhstan Intergovernmental Council will improve the efficiency of customs administration, reduce transit time of goods, as well as increase the volume of transported goods.
Relations with Britain. This week it became known that in November 2019, a donor conference will be held in Bishkek with the participation of DFID (UK Department for International Development). Minister of Economy of the Kyrgyz Republic, Sanjar Mukanbetov and British Ambassador to Kyrgyzstan Charles Garrett discussed issues of trade, economic and investment cooperation.
The ambassador noted that the British Council is promoting the Creative Economy initiative. A working group of members of the Kyrgyz government is already working in this direction. The British side is interested in the development of this sphere in the countries of Central Asia. The parties agreed to promote this direction in the Kyrgyz Republic.
The PPP Law is being launched. "The Law on PPP reduces barriers for the private sector," Daniyar Imanaliev, Head of the Department for Strategic Development, Economics and Finance of the President’s Office of the Kyrgyz Republic, commented on the Law on Public-Private Partnership (PPP) signed by the President of the Kyrgyz Republic this week.
Imanaliev noted that the changes concern the procedure for selecting a private partner, as well as optimizing the timing of the consideration of projects.
"PPP projects are divided into large and small, which will help us to optimize the work in their structuring. In addition, changes were made to expand the scope of PPP projects," he said.
Gulnara Kalikova, an independent expert on public-private partnerships, also noted that the previous law on PPP adopted in 2012 had a number of shortcomings.
"There were a lot of mistakes, the procedures were quite complicated. For about two years, work has been ongoing on the preparation of a new law," she said.
Gulnara Kalikova emphasized that PPP as a mechanism of interaction between the state and private business is aimed primarily at improving public infrastructure: roads, hospitals, schools, cultural facilities, etc.
She noted the importance of raising awareness and training for government officials and business representatives under the new PPP Law.
Exports decreased. This week, it was announced that, according to the results of 5 months of 2019, the export of Kyrgyzstan’s garment production decreased by 65% ​​and amounted to 32 million US dollars, and the export of footwear also decreased by 63%.
According to the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic, only four industries ensured positive production rates in the manufacturing industry from 13 industries, while 9 industries did not reach the level of the previous year.
A 33% decrease in the production of petroleum products is directly related to the activities of the Dzhunda refinery. The company is idle since February of this year.
Kabar News Agency