Over the past five years, there has been a noticeable increase in tax revenues in Kyrgyzstan: they have quadrupled, while customs duties have increased sixfold, and non-tax revenues have nearly increased ninefold. The consolidated budget, which amounted to 313 billion soms in 2021, exceeded 1 trillion 100 billion soms by 2025, corresponding to a growth of 3.5 times.
This data indicates that entrepreneurs have begun their activities in the legal sphere, which has significantly reduced corruption risks and increased transparency in business.
Both domestic and foreign investors have made a significant contribution to the country's economic growth. Attracting investments has become a key factor facilitating the implementation of various projects, the creation of new jobs, and the increase in tax revenues.
Dynamics of Foreign Direct Investment
According to the National Statistical Committee, over the past four years, the volume of foreign direct investment in Kyrgyzstan has significantly increased.
In 2020, this figure was 537.6 million US dollars, and by 2024 it reached 1 billion 29.7 million US dollars.
Of this, 31.9% of all investments came from non-CIS countries, while 68.1% came from CIS countries.
Main Sectors Receiving Investments
Analysis of the structure of attracted investments shows that capital is distributed across the following key sectors:
- agriculture, forestry, and fishing;
- mining;
- manufacturing;
- electricity, gas, steam, and air conditioning supply;
- water supply, waste treatment, and recycling of materials;
- construction;
- wholesale and retail trade;
- repair of cars and motorcycles;
- transportation and storage;
- hotel and restaurant activities;
- information and communication;
- financial intermediation and insurance;
- real estate transactions;
- professional, scientific, and technical activities;
- education;
- healthcare and social services;
- arts, entertainment, and recreation;
- other services.
Thus, investments cover almost all key sectors of the economy, creating a multiplicative effect for employment, tax revenues, and infrastructure development.
Investor Countries
Foreign direct investments in Kyrgyzstan come not only from CIS countries but also from the United Kingdom, Germany, Canada, Cyprus, China, Luxembourg, the Netherlands, the United Arab Emirates, Pakistan, South Korea, the United States, Turkey, Switzerland, Japan, and other states.
Among CIS countries, investments in Kyrgyzstan come from Azerbaijan, Kazakhstan, Russia, Uzbekistan, and other Commonwealth countries.
Investment Attractiveness of Kyrgyzstan
Economist Kuban Choroев reported to the Kabar agency that by the end of the first nine months of 2025, the volume of investments increased by 21.7% compared to the same period last year, and the inflow of foreign direct investments also rose by more than 21%.
In January 2026, the volume of investments in fixed capital amounted to 6 billion soms, which is 17.9% more than in January of the previous year. The growth was supported by both domestic and external funding sources, with external funding increasing 11.6 times.
“The fixed assets attracted through investment are primarily directed towards infrastructure projects in the fields of energy, water supply, waste processing, industry, and the creation of logistics centers,” noted Choroев.
He also added that investor interest in Kyrgyzstan is increasing due to the creation of favorable conditions for business and the implementation of investment projects.
“Firstly, political stability and the resolution of border issues play an important role. Complete delimitation of borders contributes to strengthening peace in Central Asia and creates a more predictable environment for large investors, significantly reducing investment risks. Secondly, the state actively supports entrepreneurs by providing them with various benefits. Interactions between investors and government bodies have been simplified, and tax preferences have been introduced. Customs duties on the import of equipment from EAEU countries are being abolished. From January 1, 2026, unreasonable business inspections by law enforcement agencies will cease, which is an important step in protecting entrepreneurs,” emphasized Choroев.
“Kyrgyzstan is undertaking consistent work to improve the investment climate. The conditions created by the state, tax benefits, political stability, and strategic geographical location make the country increasingly attractive for both foreign and domestic investors. If this trend continues and reforms are implemented, Kyrgyzstan could become a reliable investment center in Central Asia,” added the expert.
“Kyrgyzstan is undertaking consistent work to improve the investment climate. The conditions created by the state, tax benefits, political stability, and strategic geographical location make the country increasingly attractive for both foreign and domestic investors. If this trend continues and reforms are implemented, Kyrgyzstan could become a reliable investment center in Central Asia,” added the expert.
Cooperation Between Entrepreneurs and the State
Over the past four years, the average annual real economic growth rate in Kyrgyzstan has been 10.2%. According to the International Monetary Fund, in 2024, the country ranked among the top three in the world for GDP growth rates. This information was announced at a republican meeting held by President Sadyr Japarov, dedicated to the results of the country's socio-economic development in 2025 and future plans.
The President outlined key development directions until 2030: to increase GDP per capita to $4,500, achieve a total economy volume of at least $30 billion, enter the top 30 countries for sustainable development goals, and raise the country's position in the human development index by 10 points.
Sadyr Japarov emphasized that Kyrgyzstan is interested in attracting domestic and foreign investors, ready to provide the most favorable conditions for those who seek to develop the country's economy through investments, technology, and knowledge. He also noted that a moratorium on unreasonable business inspections has been introduced, administrative procedures have been simplified, and legislative norms have been improved.
“Entrepreneurs who benefit both themselves and the state must be protected by law and feel support from the state. In the context of creating a favorable investment climate, I emphasize: there should be no unreasonable pressure on business. All law enforcement agencies and security forces present at the meeting must understand that businesses operating honestly and contributing to the country's development must be fully protected. If entrepreneurs are in a state of fear and pressure, it halts economic growth, which, of course, harms the state and the people,” said the president.
“It is necessary to stop unreasonable inspections by local law enforcement agencies regarding akimats, mayors, and rural administrations. Allow them to work, do not create additional barriers. We strive for entrepreneurs to become the heart of Kyrgyzstan's economy, a source of innovation and new jobs,” he added.
“It is necessary to stop unreasonable inspections by local law enforcement agencies regarding akimats, mayors, and rural administrations. Allow them to work, do not create additional barriers. We strive for entrepreneurs to become the heart of Kyrgyzstan's economy, a source of innovation and new jobs,” he added.
The president assured that the state will continue to support entrepreneurs by offering them guarantees and creating conditions for business.
“In Kyrgyzstan, entrepreneurs should see themselves as partners of the state. Only on the basis of mutual respect can we ensure strong economic growth and create a decent future for our country,” concluded the head of state.
By 2030, Kyrgyzstan should transition from a service-oriented economic model to an industrial-agricultural model, increasing the share of production to 28–30%. Achieving sustainable development will require coordinated work from all government bodies.
This will allow for the realization of the goals set out in the National Development Program of the country until 2030.
