"Smuggling is profitable for certain companies and affects ordinary citizens, - economist"

Елена Краснова Exclusive
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Fuel smuggling is a pressing issue for the economy of Kyrgyzstan, as noted on the radio by Doctor of Economic Sciences, Professor Beyshenbek Ishenov.
According to him, smuggled supplies benefit certain companies, but they also negatively affect the lives of ordinary citizens, as smuggled goods often cost less than legal ones. This underscores the need for control over this phenomenon: “Smuggling should not be a constant; it needs to be kept under control. Otherwise, companies evade taxes, part of the economy goes into the shadows, and as a result, the 'gray' sector increases,” he added.

Ishenov emphasized the importance of adhering to strict control systems. “Product labeling can be an effective tool for reducing the shadow turnover, but it needs to be constantly maintained. Currently, more than 1.5 million liters of gasoline are consumed daily just for private vehicles, not including corporate fleets. Control must cover all these aspects to understand the real consumption volumes and reduce illegal turnover,” he explained.

The economist also believes that the development of electric vehicles could be a strategically important step for the country. “Using electric transport reduces dependence on gasoline, lessens negative environmental impacts, and helps reduce household expenses. By starting with small investments in electric transport and infrastructure, we can gradually expand this effect,” the expert emphasized.

Furthermore, Ishenov noted that technological progress is advancing rapidly, and relevant authorities must integrate new solutions into the country's energy system. “Electrification of homes, streets, and rural areas is an important step towards sustainable development and the use of renewable energy sources, which will help reduce the consumption of traditional fuels,” he added.

In conclusion, the economist stressed that the fight against smuggling and the implementation of alternative energy sources must develop simultaneously: transparency and control in the market is the first step, while strategic electrification is the second.
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