Penalties for businesses have increased 13-fold — IBC sounds the alarm

The International Business Council (IBC) has prepared an analytical report on the state of the institutional environment for business in Kyrgyzstan. The document emphasizes that with GDP growth of 11.1% to 1 billion 976.4 billion KGS in 2025, there remains a high degree of uncertainty for entrepreneurs, primarily due to the practice of imposing penalties and fines.

The MDS considers the dynamics of penalties to be particularly alarming: from 2.49 billion KGS in 2020, they grew to 25.3 billion KGS in 2024 and reached 33.84 billion KGS in just the first eight months of 2025 — an increase of more than 13 times. The amount of penalties for the same period increased from 460 million KGS to 9.10 billion KGS. Experts note that such measures, combined with insufficient predictability of law enforcement, create tension between business and the state and may deter investment.

In addition, the strengthening of the state's role in certain sectors and the low level of protection of property rights are reflected in international ratings: according to Transparency International's Corruption Perceptions Index, Kyrgyzstan scored 25 out of 100, ranking 146th out of 180 countries. The IDA emphasizes the need to strengthen the rule of law, regulatory predictability, and minimize unjustified interference in business activities to maintain the country's investment attractiveness.