Kazakhstan President Calls for New Economic Model

Kazakhstan President Kassym-Jomart Tokayev highlighted that the country should decisively move to a new economic model, led by real improvement in the lives of citizens and not by abstract achievements.

Tokayev spoke at his state-of-the-nation address, entitled “Economic course of a Just Kazakhstan, where he mentioned ambitious plans for economic reforms and a fresh economic trajectory for the nation."

He further underscored the key economic tasks faced by the Kazakhstan government.

“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,” he said according to the Embassy of Kazakhstan in India.

President Tokayev detailed a course based on principles of fairness, inclusiveness, and pragmatism.

“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.

Adding to this, he noted that the core focus will be given to sectors like heavy engineering, uranium enrichment and automotive components.

“Tokayev proposed that in order to support the manufacturing industry, foreign and domestic investors should be exempted from paying taxes and other mandatory payments for the first three years,” the embassy of Kazakhstan said in a statement.

Talking about fiscal matters, Tokayev called for coordination of financial and monetary policies with the aim of achieving stable economic growth of 6-7 per cent.

Further, emphasizing the need to attract foreign banks to boost competition and solve the problem of insufficient corporate lending, he said, “The principal task is to ensure the annual growth of lending to the real sector at the level of 20 per cent or more,” he said.”

Moreover, he underlined the need to support small and medium enterprises and boost privatization.

“The main goal is to radically increase the transparency and efficiency of asset management. 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.

The statement further noted that the changes in legislation will be initiated to encourage consolidation among small businesses and efforts will be intensified to demonopolize key markets.

Tokayev also emphasized Kazakhstan’s commitment to sustainability and environmental protection.

“In the long run, a global transition to clean energy is inevitable,” he added.

Meanwhile, he highlighted the plans to increase renewable energy capacity and develop hydrogen generation.

The president of Kazakhstan further proposed to hold a national referendum on the construction of a nuclear power plant, the statement said.

He then stressed the vision for Kazakhstan to become an IT-focused country. “We are among the world leaders in the e-government and fintech development index,” he said.

He further directed the government to increase the export of IT services to one billion dollars by 2026. “This will be facilitated by partnerships with major foreign IT companies,” the statement said.

According to the statement by the embassy of Kazakhstan, “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.”

He further highlighted the need to build a new dry port at the Bakhty crossing.

“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,” he added.

Moreover, he said that the country should become a full-fledged transport and logistics power.

“The President also pointed out that the realization of the transport potential depends on Kazakhstan’s constructive and good-neighbourly relations with all neighbouring countries, including Russia, China, and our neighbours in Central and South Asia,” the statement added.

Shifting his focus to the political sphere, Tokayev announced that Kazakhstan will organize elections of akims (mayors) of districts and cities of regional significance after Kazakh citizens have elected akims of villages, towns and rural districts in the past two years.

Furthermore, his address also highlighted other areas like agriculture, gasification, addressing water security, among other areas.

He further acknowledged the significant achievements of Kazakhstan 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 statement said.

In the end, the President stressed that all citizens, particularly young people should embody the best qualities, as these form the foundational values of society.

He described this as “Adal Azamat” or Responsible Citizen, and further stated, “If everyone is patriotic, educated, hardworking, disciplined, responsible, fair, thrifty and sympathetic, then there will be no unattainable heights for us.”

He emphasized that the ideas of Just Kazakhstan and “Adal Azamat” should always be considered as fundamental values that stand side by side, the statement said.

Taking the government accountable, Tokayev said that the government will be held fully accountable for the implementation of this robust economic and social policy.

“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 added.