Astana, 1 September 2023 (TDI): President of Kazakhstan, Kassym-Jomart Tokayev, delivered a significant state-of-the-nation address entitled “Economic Course of a Just Kazakhstan.” The agenda encompasses ambitious plans for economic reforms.
While outlining various facets of the national agenda, President Tokayev stated: “In such an important period, we have every opportunity for a powerful economic breakthrough. To do this, we must decisively move to a new economic model, which is led not by abstract achievements, but by a real improvement in the lives of citizens.”
Moreover, President Tokayev acknowledged several significant achievements in the past few years, including the doubling of salaries for teachers since 2020, significant salary increases for doctors, and the implementation of initiatives like the “National Fund for Children,” and the construction of over 300 healthcare facilities in rural areas.
“The most important task is the formation of a solid industrial framework of the country, ensuring economic self-sufficiency. The main emphasis should be placed on the accelerated development of the manufacturing sector,” he said.
Whereas to support the manufacturing industry, he proposed tax exemptions for foreign and domestic investors for the first three years.
Furthermore, particular focus will be given to sectors like heavy engineering, uranium enrichment, and automotive components, he noted. Tokayev proposed that to support the manufacturing industry, foreign and domestic investors should be exempted from paying taxes and other mandatory payments for the first three years.
On fiscal matters, President Tokayev called for coordinated financial and monetary policies, aiming for stable economic growth of 6-7 percent. He also highlighted the importance of attracting foreign banks to boost competition and increase corporate lending.
“The principal task is to ensure the annual growth of lending to the real sector at the level of 20% or more,” he added.
Supporting small and medium enterprises and accelerating privatization were key elements of the President’s address. He emphasized the need for greater transparency and efficiency in asset management and called for legislation changes to encourage consolidation among small businesses.
“I direct the Government to start privatizing all non-core assets and holding people’s IPOs of Samruk-Kazyna Fund companies from 2024,” he said. Changes in legislation will be initiated to encourage consolidation among small businesses, and efforts will be intensified to demonopolize key markets.
In his address, Presiden Tokayev highlighted Kazakhstan’s commitment to environmental sustainability, with plans to increase renewable energy capacity and develop hydrogen generation. President Tokayev proposed a national referendum on the construction of a nuclear power plant to achieve this commitment.
Kazakhstan’s ambitions in the IT sector were highlighted, to increase IT service exports to one billion dollars by 2026 through partnerships with foreign IT companies. “We are among the world leaders in the e-government and fintech development index,” he emphasized.
In the realm of transportation, President Tokayev outlined plans to establish Kazakhstan as a major transit hub in Eurasia, focusing on key routes like the Trans-Caspian and the international North-South Corridor.
“It is necessary to build a new dry port at the Bakhty crossing, accelerate the construction of a container hub in Aktau, and expand port facilities on the Black Sea along the Middle Corridor,” the President pointed out. He stressed that Kazakhstan should eventually become a full-fledged transport and logistics power.
Additionally, the President pointed out that the transport potential depends on Kazakhstan’s constructive and good relations with all neighboring countries, including Russia, China, and our neighbors in Central and South Asia.
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The address also touched on political reforms, including upcoming elections of akims (mayors) of major important districts and cities. He also focused on developing various sectors, such as agriculture, gasification, and addressing water security.
President Tokayev concluded by urging all citizens, especially young people, to embody responsible citizenship and uphold the foundational values of a just society. He described this as “Adal Azamat” or Responsible Citizen, stating: “If everyone is patriotic, educated, hardworking, disciplined, responsible, fair, thrifty and sympathetic, then there will be no unattainable heights for us.”
President Tokayev ended the address saying that the government will be held accountable in implementing the proposed economic and social policies. “It should have all the levers of independent management of the economy without red tape and bureaucracy, and without coordination with the Presidential Administration,” he emphasized.
