Tashkent, Uzbekistan (UzDaily.com) -- The main point of criticism is that, despite the annual production of about 20 tonnes of gold, the jewelry industry remains one of the most underdeveloped.

Experts point to the following systemic problems as constraining factors for the development of this industry:

first, the lack of raw materials. More than 900 business entities are employed in the jewelry industry of Kyrgyzstan, employing 6 thousand people. At the same time, the bulk of the mined gold is exported, and therefore business entities receive only 200 kg of gold, at a time when their minimum requirement is 1.5 tonnes annually. In addition, the state sells raw materials to domestic jewelers at 5% more than on the London Stock Exchange.

As a result, the volume of production of gold jewelry of domestic production in 2019 compared to 2009 fell 5 times, while the import of gold jewelry in these years increased 55 times;

secondly, the presence of a shadow market. According to various estimates, prospectors mine about 600 kg of the precious metal annually. However, the National Bank officially purchases from them only about 5-10 kg. The rest goes through the shadow market to neighboring countries. Kyrgyz experts are sure that “unaccounted trade turnover brings serious losses to the budget”;

third, weak promotion of products abroad. Experts note that due to the lack of systematic state support in promoting jewelry to foreign markets, local entrepreneurs are unable to export their products. In addition, the absence of an Agreement on Operations with Precious Metals and Precious Stones within the framework of the EEU prevents the mutual recognition of assay marks in mutual trade.

In general, analysts conclude that the development of the jewelry industry in Kyrgyzstan will provide additional funds for the state budget. In their opinion, the solution of these systemic problems can only in the form of taxes from this sector increase the revenues to the treasury from 700 thousand dollars to 7 million dollars a year.