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President Sadyr Japarov: “We will create the most favorable conditions for doing business”

May 5, 2021

In his address to the people on May 5, 2021, President of the Kyrgyz Republic Sadyr Japarov expressed his opinion on further plans for the country's economic development.

According to the Head of the State, it is planned to carry out economic reforms, including the development of fiscal, judicial, human rights, transport and logistics, as well as foreign trade policies. Digitalization should become a comprehensive element of reforms, the presidential press office reports.

First, we will create the most favorable conditions for doing business. This will be protection against unauthorized inspections, interference, raiding and attacks. We will eliminate bureaucratic barriers, reduce the time required for obtaining licensing and permits, and ensure free capital turnover. We will carry out a fiscal system reform aimed at improving management, simplifying and digitalizing procedures, reducing the tax burden and withdrawal of business from the shadow economy,” the President said.

President Japarov instructed to submit a new Tax Code, as well as a new law to reduce the tariffs of social payments for the parliamentary consideration until October 1, 2021.

Second, businesses must believe in the impartiality, fairness and objectivity of the judiciary. As part of the planned judicial reform, the protection of private property rights will be strengthened, Sadyr Japarov said.

Third, it is necessary to ensure a qualitative change in the structure of foreign trade and increase the country's export potential. Conducting foreign trade transactions for business will be convenient, fast and simple.

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

Fifth, it is necessary to improve the efficiency of the use of state assets. The economic reality has confirmed that the private manager works more efficiently than the state one.

“Our task is to restructure state-owned enterprises and transfer them to private ownership in the future,” said the President.

The State Property Fund after the completion of these works must be liquidated. State property that is not subject to privatization must be transferred to ministries, departments and local governments.

“The above reforms will contribute to the development of priority sectors of the economy —energy, subsoil use and agriculture,” Sadyr Japarov said.