TEHRAN: Kyrgyzstan attaches special importance to the development of economic relations with Iran, Kyrgyz Economy Minister Arzybek Kojoshev said at the Kyrgyz-Iranian business forum held in Bishkek last week as part of Iranian President Hassan Rouhani’s visit to Kyrgyzstan. Kyrgyzstan is interested in cooperation with Iran, the fourth largest economy in the Islamic world and the second largest in Western Asia.
The trade turnover between Kyrgyzstan and Iran was $12.3 million in the first ten months of 2016 and increased by 82.7% compared to the same period of 2015. Exports amounted to $7.3 million and increased 2.4-fold and imports totaled $5 million (up 36%). The Manas International Airport in Bishkek could become a hub for Iranian airlines to China and the Asia-Pacific region. “We are ready to offer the best conditions in the region. We are also ready to provide the airport’s transit service for refueling and maintenance of aircraft,” Kojoshev said. In turn, Iranian Bandar Abbas International Airport could provide Kyrgyzstan with access to the sea and cheaper freight, he said. Kyrgyzstan is a full member of the Eurasian Economic Union (EEU) and enjoys preferences due to the removed barriers to movement of goods, services and capital in the markets of the five EEU member countries with a population of over 180 million. The EEU membership allows duty-free export of goods to the EEU member countries, Kojoshev said. In January 2016, the European Union granted Kyrgyzstan the right to participate in the Generalized System of Preferences (GSP+). Kyrgyzstan now can export its products (more than 6,000 commodity items) without customs duties to the EU member countries if they meet the EU requirements. Kyrgyzstan is the only country in Central Asia enjoying the GSP+.
The country has a liberal tax regime, with the income tax of 10% and VAT of 12%, which is lower than in Kazakhstan, Uzbekistan, Tajikistan and China. Kyrgyzstan’s electricity tariffs are the lowest among the CIS countries. The Kyrgyz Agriculture Ministry invited Iranian business to invest in irrigation projects. The National Energy Holding invited Iran to invest in construction of the Upper Naryn hydropower plants cascade and Kambarata HPP-1. Kyrgyzstan is ready to supply Iran with all kinds of finished meat products, especially lamb, Minister Kojoshev said. Kyrgyzstan has already exported 120 tons of lamb and is planning to supply another 500 tons. “Iran has appreciated the taste and quality of meat from Kyrgyzstan. We have a serious approach to the production of products according to halal standards. In this regard, our approaches are very close, and it is necessary to develop them on a long-term basis,” Kojoshev added. The Kyrgyz Investment Promotion and Export Agency expressed its readiness to help entrepreneurs from Iran to open and run business in Kyrgyzstan.
