01:35
USD 89.12
EUR 95.10
RUB 0.95

President's message: What economic reforms Sadyr Japarov proposes

The President signed the Constitution of the Kyrgyz Republic, adopted in a referendum on April 11, today.

Then Sadyr Japarov addressed a message to the people. He told about planned economic reforms.

It is planned to carry out economic reforms, including development of fiscal, judicial, human rights, transport and logistics, as well as foreign trade policies. Digitalization should become an overarching element of the reforms.

According to the head of state, the most favorable conditions for doing business will be created. First of all, it will be protection against unauthorized checks, interference, raiding and attacks.

Bureaucratic barriers will be eliminated, the time required for obtaining licensing and permits will be reduced, and free capital turnover will be ensured.

A reform of the fiscal system aimed at improving management, simplifying and digitalizing procedures, reducing the tax burden and bringing businesses out of the shadows will be carried out. The task is to restructure state-owned enterprises and transfer them to private ownership in the future. Whereas it is necessary to privatize work functions and provided services at strategic facilities. The State Property Management Fund must be liquidated after completion of these works. State property that is not subject to privatization must be transferred to ministries, departments and local self-government bodies.

One year is enough to implement these plans.

Sadyr Japarov instructed, by October 1, 2021, to submit a new Tax Code to the Parliament, as well as a new law to reduce the tariffs of social payments.

He stated that he would take the public-private partnership dialogue to a new level.

«Business must believe in the impartiality, fairness and objectivity of the judicial system. As part of the planned judicial reform, protection of private property rights will be strengthened and the institution of arbitration courts will be developed. It is necessary to ensure a qualitative change in the structure of foreign trade and increase the country’s export potential. Conducting of foreign trade transactions for business will be convenient, fast and simple. It is also important to ensure the transport and logistics integration of the country and solve problems with transportation of domestic products,» the President said.

He noted that the transit potential of the country is underdeveloped due to the lack of an integrated railway system of international railway communication through the territory of the country. Therefore, within the framework of One Belt, One Road initiative, it is planned to build a China-Kyrgyzstan-Uzbekistan railway. Implementation of this project will be speeded up.

The issue of allocation of a land plot for creation of a modern equipped multimodal cargo air hub is considered.

In addition, it is necessary to think about development of a new Labor Code, which provides for a significant reduction in regulation of labor relations. This will improve the investment climate and balance the rights and interests of workers and employers.

It is necessary to attract direct investment in the economy and develop international cooperation. The budget is limited, so it is important to attract direct investment and external assistance for implementation of new projects and rehabilitation of infrastructure facilities. This should correspond to the strategic goals and objectives of the state.

The President also suggests working to improve efficiency of the use of state assets. The economic reality has confirmed that the private manager works more efficiently than the state one.

«The aforementioned reforms will help develop priority sectors of the economy. These are energy, subsoil use, agriculture sectors,» Sadyr Japarov concluded.

Popular