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ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of December 20, 2018 No. 596

About approval of the Program of the Government of the Kyrgyz Republic for development of export of the Kyrgyz Republic for 2019-2022

For the purpose of increase in the export potential of the country and competitiveness of domestic production in the world market, within program implementation of development of the Kyrgyz Republic for 2018-2022 "Unity. Trust. Creation", the Kyrgyz Republic approved by the Resolution of Jogorku Kenesh of April 20, 2018 No. 2377-VI, according to articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve:

- The program of the Government of the Kyrgyz Republic for development of export of the Kyrgyz Republic for 2019-2022 according to appendix 1;

- The actions plan on program implementation of the Government of the Kyrgyz Republic on development of export of the Kyrgyz Republic for 2019-2022 (further - the Actions plan) according to appendix 2.

2. To the ministries, the state committees, administrative departments and local government bodies (in coordination):

- in case of annual forming and introduction of amendments to the republican budget to provide financing of expenses on implementation of the Actions plan.

3. To the ministries, the state committees, administrative departments, local government bodies (in coordination) and to National Bank of the Kyrgyz Republic (in coordination):

- quarterly, no later than the 15th following the accounting period to provide information on execution of the Actions plan in the Ministry of Economics of the Kyrgyz Republic for generalization.

4. Quarterly, no later than the 30th following the accounting period to provide to the Ministry of Economics of the Kyrgyz Republic in Government office of the Kyrgyz Republic the summarized information on course of execution of the Actions plan.

5. Establish the personal responsibility of heads of state bodies for high-quality and timely accomplishment of the Actions plan.

6. To impose control of execution of this Resolution on department of economy and investments of Government office of the Kyrgyz Republic.

7. This Resolution becomes effective after seven days from the date of official publication.

Prime Minister of the Kyrgyz Republic

M. Abylgaziyev

Appendix 1

to the Order of the Government of the Kyrgyz Republic of December 20, 2018 No. 596

The program of the Government of the Kyrgyz Republic for development of export of the Kyrgyz Republic for 2019-2022

1. Overall assessment of the current situation

Foreign economic activity of the Kyrgyz Republic since 2013 is characterized by certain decrease of the activity. The foreign trade balance decreased with 7993, 8 million US dollars in 2013 to 6259, 0 million US dollars in 2017. For the same period export decreased with 2006, 8 million US dollars to 1764, 3 million US dollars in 2017, and import decreased from 5987 million US dollars in 2013 to 4494, 7 million US dollars in 2017.

The negative balance of trading balance in 2013 made 3980, one million US dollars and slightly improved, having made 2730, 4 million US dollars in 2017.

At the same time, results of 2017 show export growth on % 12,1 that, in turn, shows accomplishment by exporters of the requirements of the Eurasian Economic Union (further - EEU) shown to goods for export, functioning of veterinary and other test laboratories, lifting of restrictions on borders of state members of EEU. The government of the Kyrgyz Republic takes the measures aimed at the development of national infrastructure of quality, attraction of financial resources for leasing of processing equipment, the project of financing of the export-oriented and import-substituting companies is approved, the imported processing equipment is exempted from the value added tax. All this stimulates export of domestic production.

Nevertheless, there is number of problems which solution will promote further development of export. The questions connected with concern to them:

- access to financing of export transactions and companies;

- quality infrastructure;

- export stimulation;

- transport and logistic infrastructure;

- staffing;

- efficiency of productive activity of the companies;

- promotion in the foreign markets.

The solution of the above-stated questions will allow to improve product competitiveness and to increase several times export opportunities of priority industries of economy of the republic.

Expansion of export is implemented at the expense of the existing priority sectors which products have steady export focus.

On analysis results four priority sectors to which development this Program is oriented were chosen:

1) sewing industry;

2) dairy industry;

3) conversion of vegetables and fruit;

4) green and innovative instrument making.

Also the Program includes three cross-industry sectors:

1) quality infrastructure;

2) access to finance;

3) export stimulation.

The export companies of the specified sectors in priority procedure will be given help in access to finance (including to subsidies, soft credits), in marketing and sales of products in the foreign markets.

The description of condition of the specified export industries follows below.

Sewing industry

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