Bishkek, June 19, 2024. /Kabar/
The Prime Minister of the Kyrgyz Republic, Akylbek Japarov, participated in the X Mining and Geological Forum “MINEX Central Asia.”
In his welcoming speech, the head of the Cabinet of Ministers emphasized that 95% of Kyrgyzstan’s territory is composed of mountains, rich in mineral resources, including gold, coal, iron (over 5 billion tons in a single deposit), titanium, and rare earth metals, which are currently in high economic demand (europium, zirconium, caesium, and the lanthanoid group).
“For example, the forecasted reserves of titanomagnetite at one deposit site are approximately 20 million tons (Kyzyl-Ompol), and the reserves of rare earth metals, including over 21 elements, are about 60,000 tons (Kutessay-2). These reserves were recorded over 50 years ago, and there is an opinion among authoritative geologists that these figures could increase significantly with more detailed geological exploration using new technological solutions. We invite partners to collaborate on geological exploration and await investors in this promising sector of the economy – mining,” he said.
Akylbek Japarov also highlighted the overall situation in the country – the development of political, economic, and social processes, which ultimately determine investment attractiveness and activity.
“First and foremost, we have achieved political stability in the country by improving the economic situation. We have significantly reduced the shadow economy, increased tax revenues and customs duties in the budget, and raised the salaries of teachers, doctors, cultural workers, and low-income citizens by organizing social contracts based on the principle of ‘not giving fish, but a fishing rod.’ We have also engaged in a tough fight against corruption and crime. As a result, 82% of the population support the course of the country’s leadership, headed by President Sadyr Nurgozhoev. This fact was revealed not by us, but by the International Republican Institute (IRI). The people see and feel improvements in all areas. It can be said that after three revolutions, the country has now turned towards the economy and construction,” he reported.
Furthermore, he noted significant positive shifts in the country’s economy, “as a result of which Kyrgyzstan can be confidently characterized as a reliable economic partner capable of fulfilling all its economic obligations.”
Over the past few years, Kyrgyzstan’s economic growth has demonstrated exceptionally stable development – the average GDP growth rate was 7%. Economic growth is ensured by all sectors, with particularly high investment activity and a record growth rate observed in construction. In the first quarter of 2024, the growth in investment volumes in fixed capital was 66.6%, and the gross product of construction was 53.8%. In 2023, the country surpassed a historical milestone – the GDP reached over 1 trillion 229 billion soms (approximately 14 billion US dollars), significantly higher than previous years.
The GDP per capita was almost 2,000 US dollars, whereas in 2020 it was only 1,230 US dollars. Thanks to a balanced monetary policy, inflation slowed down from 14.7% in 2022 to 7.3% in 2023. Moreover, as of May 2024, the annual inflation rate was 4.4%. As a result of fiscal reforms, the consolidated state budget has doubled over the last three years.
“Recently, the rating agency Moody’s upgraded the country’s credit rating outlook from negative to stable and confirmed the long-term issuer ratings in national and foreign currency at the B3 level.
These facts, as I have already said, testify to the strengthening of the state as a reliable partner that can fulfil its financial obligations in a timely and full manner,” he emphasized.
The Prime Minister noted that the recent signing of a document with neighbouring states on the construction of the Kambar-Ata-1 HPP is an example of how Central Asian countries can unite to achieve common goals and solve global tasks. This project symbolizes a new stage in the development of energy integration in the region.
“In other words, there will be no more shows in Central Asia over the possession of water resources, as some sensationalist journalists predict, but there will be peaceful cooperation for the benefit of all peoples.
And finally, we are ready for mutually beneficial cooperation. We want to fairly distribute wealth with our partners.
It is known that Winston Churchill said that ‘under capitalism, wealth is unfairly distributed, and under socialism, poverty is fairly distributed.’ In our history, there was a time when poverty was fairly distributed in one direction, and wealth in another. We want to fairly distribute wealth with our partners and develop mutually beneficial relations in the interests of our people,” he said.
In conclusion, Akylbek Japarov emphasized that every investor can use all the existing opportunities in the Kyrgyz Republic and actively invest, adding that it is time to open a new page in relations aimed at results and construction.
The forum is being held under the theme “Prospects and Scenarios for Sustainable Development of the Mining Industry in Central Asian Countries.” Over 100 companies and organizations from 22 countries in Central Asia, Europe, China, North America, and the Middle East are participating in the forum.
