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Thursday, September 24th, 2020

Economic week of Kyrgyzstan Nov. 25 – 30, 2019

by November 30, 2019 General

Several important events took place last week related to the country’s economy. This is, first of all, the state visit of the President of Kazakhstan to Kyrgyzstan, which stated that Kyrgyzstan and Kazakhstan should reach the billionth level of trade between the countries. The Ministry of Agriculture this week introduced a bill for general discussion in order to expand its functions. The National Bank’s discount rate has remained unchanged, for 2020 the Ministry of Finance plans to slightly increase the average salary, officials from the economic sector made abroad trip.

The Ministry of Agriculture is expanding. This week, the Ministry of Agriculture, Food Industry and Land Reclamation of the Kyrgyz Republic submitted for public discussion a draft resolution of the Government of the Kyrgyz Republic On Amending Some Decisions of the Government of the Kyrgyz Republic.

Such a step of the ministry was taken in order to strengthen the institutional role of the ministry, to optimize the management structure, with expanding its functions, for the quality performance of the provided services, expanding the list of functional responsibilities and rights of the Department of Mechanization and Energy Supply, with the provision of functions to provide services to agricultural entities and the agrarian industry as a whole.

The Ministry suggests organizing a self-supporting type machine-tractor stations on the basis of the existing territorial and subordinate units of the Ministry of Agriculture of the Kyrgyz Republic, equipped with machinery and equipment for the provision of integrated agro-technical services and mechanized work for peasants and farmers.

Salary amount. This week, the Ministry of Finance of the Kyrgyz Republic announced that in Kyrgyzstan in 2020 the average monthly salary will be almost 18 thousand soms (about USD 257).

In 2018, the average monthly salary in the Kyrgyz Republic was 16 thousand 427 soms (about USD 235), and in 2019 this figure reached the threshold of 17 thousand 100 soms (about USD 244). According to forecasts, in 2020 the average salary will be 17 thousand 955.5 soms (about USD 257), in 2021 – 18 thousand 835.4 (about USD 269), in 2022 – 19 thousand 682.9 (about USD 281).

National Energy Holding and Japan. The leadership of the National Energy Holding of Kyrgyzstan visited Japan to get acquainted with the work of a number of Japanese companies. Chairman of the Board of the National Energy Holding Aitmamat Nazarov held a number of meetings with heads of major energy corporations and companies.

Within the framework of the visit, meetings were held with heads of such companies as Toshiba Energy Systems and Solutions, Toshiba Plant System, Tokyo Rope MFG Co., Ltd. and Yokogawa Electric Corporation.

The prospects of bilateral cooperation were discussed, in particular in the field of construction of small hydropower plants, supply of electrical equipment (cable products, metering devices, etc.).

The delegation’s visit resulted in reaching the agreement to consider the possibility of implementing investment projects for the construction of small hydroelectric power plants (Papan, Kirov and Karakul HPPs) through the Japanese International Cooperation Agency (JICA), and the Kyrgyz side will send project proposals on the above issues for detailed consideration and study by the Japanese side.

About tourist potential in Pakistan. This week, products of applied art by masters of Kyrgyzstan were presented at the annual charity fair organized by the Pakistan Women’s Association at the Foreign Ministry of the Islamic Republic of Iran in conjunction with diplomatic missions in Islamabad.

In the pavilion of Kyrgyzstan, designed in the form of a yurt, guests of the event could get acquainted with applied art products, with information regarding the tourism and investment potential of the Kyrgyz Republic, as well as try national dishes and drinks

The event was attended by First Lady of Pakistan Samina Alvi, representatives of the government, the general public of the country and the media in Pakistan.

National Bank rate. This week, the National Bank of Kyrgyzstan announced that it had kept the discount rate at 4.25%.

According to data of the NBKR, a moderate recovery in the general price level is observed in the country, mainly due to prices for food products. In November, the annual inflation rate was 2.5%.

The inflation dynamics in the country are in line with the expectations of the National Bank. The previous inflation forecasts are maintained: by the end of 2019, it is expected to be at about 3.5% (December 2019 to December 2018), the average annual value is not higher than 1.5%. The National Bank of the Kyrgyz Republic predicts that in the absence of internal and external shocks, a gradual rapprochement of inflation to the medium-term target of 5-7%.

CIS tax officers. The 26th meeting of the Coordinating Council of Heads of Tax Services of the Commonwealth of Independent States took place in Moscow on Nov. 26.

The meeting was devoted to tax administration in the digital economy.

The delegations exchanged views on tax administration and the introduction of new information technologies. Following the discussion, the parties agreed to implement new joint projects in this area.

The participants also discussed the changes in the composition of the Coordinating Council, the results of the work plan for 2017-2018, assessed the progress of the third stage of the CIS economic development strategy for the period up to 2020 and the project of the first stage of the CIS economic development strategy for the period up to 2030.

The Council also identified the main areas of work for the next year and elected a new Chairman of the Coordinating Council.

Purpose US 1 bln. Trade turnover between Kyrgyzstan and Kazakhstan should be brought up to $1 billion, President of Kazakhstan Kassym-Jomart Tokayev told following his state visit to Kyrgyzstan.

The Kazakh leader said since 2015, cooperation between Kyrgyzstan and Kazakhstan has continued in the EAEU, which opened new opportunities for the sides.

Trade turnover between the two countries increased by 30% and amounted to about $900 million. As a result, our country is a leading partner of Kyrgyzstan. Our task is to bring trade turnover up to $1 billion, he said.

Tokayev noted about his assignment to find new sector for cooperation in this regard.

Source: Kyrgyz National News Agency