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The Kyrgyz Republic Launches Reform of the Licensing and Permitting System: Business Invited to the Decision-Making Table

On July 17, 2025, a working meeting was held at the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic to mark the launch of one of the country’s key institutional reforms this year — a comprehensive revision of the licensing and permitting system, as part of the so-called “regulatory guillotine.” This initiative is being implemented pursuant to Presidential Decree No. 83 of March 10, 2025, and Cabinet Resolution No. 552-r of June 30, 2025. Its goal is to eliminate excessive, outdated, and duplicative procedures in order to simplify doing business and improve the efficiency of public administration.

While the term “regulatory guillotine” is not new, this time the reform has taken on a strategic dimension. It is not merely a technical inventory exercise, but a full reassessment of the philosophy of regulation in the country. For the first time, the focus is not on ministerial approaches, but on open dialogue with the business community, with full involvement of industry associations in developing proposed changes. The working meeting at the Investment Council demonstrated exactly that — the private sector’s readiness not only to raise concerns but to constructively participate in shaping new rules.

The significance of the meeting was further underscored by a proposal from the Ministry of Economy and Commerce and the National Institute for Strategic Initiatives (NISI) under the President of the Kyrgyz Republic, which suggested designating the Secretariat of the Investment Council as the coordination channel for collecting, structuring, and processing all proposals from business associations as part of the reform. This reinforces the role of the Investment Council as a platform for public-private dialogue capable of aligning the interests of both government and the private sector in a single space.

The Secretariat’s task is to establish a process for submitting initiatives, conducting expert reviews, preparing consolidated positions, and, where necessary, supporting their consideration by the Commission responsible for determining the “fate” of individual permitting documents.

During the meeting, representatives of business associations confirmed their readiness to contribute and submit specific proposals for improving regulation in their respective sectors. Discussions focused not only on administrative barriers and costs but also on more advanced approaches — such as introducing elements of self-regulation, digitalizing procedures, and delegating certain functions to industry associations. Participants emphasized that the reform presents a rare opportunity for systemic change — provided the dialogue remains consistent and mechanisms transparent.

In the near future, the Secretariat of the Investment Council will send out a special proposal submission form developed by the Ministry of Economy and Commerce to business associations. This form will help standardize incoming recommendations and ensure compatibility with the logic of institutional analysis. Once consolidated, the proposals will be submitted to the Ministry of Economy and Commerce and NISI and will serve as a basis for discussion within the Interagency Commission established under Ministry Order No. 110 of July 7, 2025. The Commission is tasked with conducting a full inventory of regulatory acts, assessing their relevance, legal basis, and impact on the business environment, and preparing decisions on their repeal, simplification, or transformation.

The July 17 meeting clearly demonstrated the importance of timely business involvement in shaping systemic reforms. The Investment Council under the Cabinet of Ministers — fulfilling its role as a platform for sustainable and results-oriented dialogue — has become the natural point of entry for expert proposals from the private sector. This model of engagement confirms that a structured and transparent approach to working with the business community can enhance the quality of decision-making and improve the effectiveness of reforms. It is also a good example of how government institutions and the private sector can and should work together when shaping regulatory policy.