ALMATY, March 26 (Xinhua) -- The Mazhilis, or the lower house of Kazakhstan's parliament, has approved the law on ratifying the agreement between Kazakhstan and Kyrgyzstan on encouragement and mutual protection of investments, Kazinform news agency reported on Wednesday.

The agreement, signed on April 19, 2024, in Astana, is designed to create more favorable conditions for investors, boost foreign direct investment, and strengthen economic ties between the two countries.

Alibek Kuantyrov, deputy foreign minister of Kazakhstan, explained that Kyrgyzstan initiated a revision of the agreement in 2021 due to changes in its government structure. The previous agreement, dating back to 1997, required updates to reflect changes in both international and national legislation over the past decades.

Kuantyrov emphasized that modern investment agreements need to be adapted to better protect investors and ensure a stable business environment. The new agreement includes key provisions such as international arbitration access and guarantees for fair treatment of foreign investments.

Kazakhstan and Kyrgyzstan have been expanding trade and investment cooperation. Kazakhstan is Kyrgyzstan's third-largest trading partner, with bilateral trade reaching 1.7 billion U.S. dollars in 2024.

According to Kazakhstan's National Bank, Kazakhstan attracted 4.8 million U.S. dollars in direct investments from Kyrgyzstan in the first nine months of 2024 -- an 18 percent increase compared to the same period in 2023. Meanwhile, Kazakh investors injected a total of 48 million U.S. dollars into the Kyrgyz economy over the same period. Enditem

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