Experts believe that these changes could significantly threaten the economy, investment climate, and the development of key sectors, including the important telecommunications sector.
The government aims to gain the ability to regulate prices for services and works. In particular, it wishes to introduce state price regulation for a period of up to 90 days a year, with the possibility of extension. This concerns:
- socially significant goods and services, the list of which is determined by the cabinet of ministers;
- socially significant goods and services from dominant economic entities.
The International Business Council characterized these changes as excessive and risky, noting that limiting profitability to 25% makes Kyrgyzstan less attractive to investors, especially in capital-intensive industries such as telecommunications, energy, and construction. High-tech businesses require a larger margin for recouping investments and further development.
Mobile operators may also fall under potential price regulation, which, according to the IBC, contradicts the strategy of digitalization and could negatively impact the quality of services and slow down the implementation of new technologies.
Furthermore, the international council pointed out that the proposed amendments violate Article 41 of the Constitution, which guarantees economic freedom, and contradict the National Development Program until 2030, which envisions a reduction in state intervention in business.
The new initiative would give the cabinet of ministers the ability to add any services to the list of regulated services with virtually no limitations, creating legal uncertainty and paving the way for arbitrary decisions.
The statement reads: "We believe that such an approach, aimed at an unjustified return to direct regulation methods, especially concerning dominant players in the mobile services market, contradicts the fundamental principles of working with dominants."
The business community urges to maintain the current version of the Law "On Pricing" and not to exclude part 5 of Article 6, which prohibits the regulation of prices for other services.
The International Business Council hopes that their opinion will be taken into account by officials and deputies of the Jogorku Kenesh.
