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Kyrgyzstan’s PM tells how to get garment industry out of shadows

Government of Kyrgyzstan is ready to ease the tax burden in order to get the country’s garment industry out of the shadows. The Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev said at a high-level forum in the framework of the Kyrgyz Garment Industry Week.

The head of the Cabinet noted that he was well acquainted with the difficulties of the garment industry.

«My sisters are working in this area. I know what problems they face. Mostly women work here. I want to thank you for the fact that, despite everything, you are developing our light industry,» said the Prime Minister.

Mukhammedkaly Abylgaziev said that low-interest loans would be issued through RSK Bank to support export-oriented enterprises.

«We know that finance is one of the main problems of the industry. Loans will be issued in soms up to 8 billion,» the head of the Cabinet stressed.

He also noted the need for a tax relief.

«The government still allows to work with licenses in support of the industry. But I know that there are problems with social security. We are ready to make advances to get the light industry out of the shadows. We want you to pay taxes openly,» said Mukhammedkaly Abylgaziev.

According to the National Statistical Committee, the average number of people employed in the textile and garment industry in 2017 amounted to more than 45,000 people. If to take into account that a large number of enterprises in the industry work in the shadow economy, the number of people employed in this sector, according to various estimates, ranges from 200,000 to 300,000 people. At the same time, according to the results of recent studies, over 90 percent of the sector workers are women.

According to the Ministry of Economy, the maximum export volume of clothing products from Kyrgyzstan was reached in 2012 and amounted to $ 156 million.

A decline in production in the sector in 2013-2015 was 31.7 percent. Exports of products in 2015 compared to 2012 decreased by 38.4 percent.