Uzbekistan to Set Up Free Trade Zones Near Kyrgyzstan Border

Uzbekistan is set to establish new trade and industrial zones near its border with Kyrgyzstan, President Shavkat Mirziyoyev announced during a government meeting on April 16.

The Andijan region currently exports approximately $200 million in goods to Kyrgyzstan each year, The Caspian Post reports citing foreign media.

To boost trade further, Mirziyoyev proposed the development of industrial zones in Kurgan-Tepe and Khojaabad, modeled after similar projects on the Afghan border. He directed officials to engage with local businesses and select one of the two sites to begin detailed planning.

Addressing Border Bottlenecks

Concerns were raised during the meeting over logistical challenges at the “Dostlik” checkpoint in Khojaabad. Residents and freight operators have expressed frustration with persistent delays.

Railway Project to Transform Regional Trade

Mirziyoyev also highlighted the strategic importance of the planned Uzbekistan-Kyrgyzstan-China railway. Once completed, the railway is expected to reduce shipping times by up to a week and shorten the overall route by 1,000 kilometers. Cargo volumes could increase tenfold, he noted.

The agreement to build the railway was signed on June 6, 2024, in Beijing. The 523-kilometer route will connect Kashgar in China to Andijan in Uzbekistan, passing through Kyrgyz cities including Torugart and Jalal-Abad. The project includes the construction of modern logistics hubs, warehouses, and terminals, and is intended to significantly strengthen transport links between Central and East Asia.