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Kyrgyzstan Overview

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Kyrgyzstan, a landlocked country located in Central Asia, is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest, and the People's Republic of China to the east. It is divided into seven provinces, with Bishkek as its capital. Kyrgyzstan’s population is 5.7 million people, made up of more than 90 ethnic groups. The Kyrgyz people, who comprise 72.6% of the country's population, are traditionally Sunni Muslim. The som is the currency of Kyrgyzstan (KGS), and its official languages are Kyrgyz and Russian.

In 1876, Kyrgyzstan was formally incorporated into the Russian Empire. In 1924, following a brief period of independence after the 1917 Bolshevik Revolution, the country was designated the Kara-Kyrgyz Autonomous Region and a constituent part of the Union of Soviet Socialist Republics (USSR). In 1936, the Kyrgyz Soviet Socialist Republic was established as a republic of the USSR.

The startling events of August 1991 in Moscow triggered great changes in the Republics of the USSR. In Kyrgyzstan, the republic's Supreme Soviet declared the nation independent of the Soviet Union on 31 August 1991 and, at the same time, scheduled direct presidential elections for October 1991. The president who was suddenly brought to power in 1990, Askar Akayev, became the first elected president of Kyrgyzstan, with 95% of the popular vote. By 24 March 2005, President Akayev was removed from the office and replaced by President Kurmanbek Bakiyev in what has been termed the 'Tulip Revolution'.

Kyrgyzstan witnessed a new political reform in June 2010 after Kurmanbek Bakiyev was overthrown. According to the provisions of adopted reform, Kyrgyzstan became a parliamentary country with Roza Otunbayeva at the head of the country.

In October 2011, a new presidential election took place. Beginning from 1 December 2011, Almazbek Atambayev is the President of Kyrgyzstan.

Kyrgyzstan is a mountainous country with a dominant agricultural sector. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. The economy is heavily weighted toward gold export.

Following independence, Kyrgyzstan was progressive in carrying out market reforms such as an improved regulatory system and land reform. Kyrgyzstan was the first Commonwealth of Independent States country to be accepted into the World Trade Organization (WTO). Currently, Kyrgyzstan is a party to various international agreements/organisations (more than 70), including the United Nations (UN), WTO, European Bank for Reconstruction and Development (EBRD), and Organization for Security and Co-operation in Europe (OSCE).

PwC does not have a permanent office offering tax advice in Kyrgyzstan. However, PwC Kazakhstan has a dedicated team responsible for providing consulting services relating to Kyrgyzstan issues.


Last Reviewed - 01 July 2019

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Kyrgyzstan contacts
Elena Kaeva Title = Elena Kaeva width=55px
Elena KaevaTax Partner+7 727 330 3201 ext. 4004
Lailim Mizamkhan Title = Lailim Mizamkhan width=55px
Lailim MizamkhanTax Senior Consultant+7 727 330 3201
Anar Khassenova Title = Anar Khassenova width=55px
Anar KhassenovaTax Manager+7 727 330 3201
Michael Ahern Title = Michael Ahern width=55px
Michael AhernTax Partner+7 727 330 3200
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