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Kyrgyzstan needs to diversify economy and find new sources of income

Kyrgyzstan needs to diversify its economy and find new sources of income, because the main revenues to the budget now are money transfers from the migrants and gold exports. The annual report of the Asian Development Bank says.

The key obstacle for further development was the lack of advanced business facilities in the country. In a situation, when technological innovations dramatically change the world, and information flows become more important, the improvement of the weak digital environment in Kyrgyzstan plays an important role in generating new sources of income and providing population with employment.

To respond to this, the government launched Taza Koom program to support sustainable development through digital transformation and innovation. It has the potential to promote economic diversification.

Asian Development Bank

ADB recommends accelerating the reform to improve the business climate by solving problems with contract execution, ensuring reliable electricity supply, resolving insolvency and payment of taxes cases.

It is necessary to improve the management of public investments, encourage private investors to fill the supply gaps for infrastructure in the energy and other sectors. Trade policy reform, which would increase benefits from the preferences received by Kyrgyzstan, is also useful, ADB noted.