Agricultural machinery production is forecast to grow to 300 billion tenge in 2025
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9 out of 10 purchased tractors and combines are assembled in Kazakhstan. This was reported at the Government session by the President of the Union of Industrial Investors Kairat Yelamanov, primeminister.kz reports.
According to him, the annual output of agricultural machinery is 263 billion tenge, forecasted to grow to 300 billion tenge in 2025.
The agricultural machinery industry produces tractors and combine harvesters at 8 enterprises, which already fully meet the annual demand of farmers for this equipment. More than 20 more enterprises are engaged in production of trailed and mounted agricultural machinery and equipment. Import dependence in this area is annually decreasing. As of today, welding, cutting, cutting, bending and painting operations are performed for each model of tractors, combines, as well as for mounted and trailed agricultural machinery. Welding and colouring of tractor cabs, as well as manufacturing of plastic parts for body elements of energy-intensive tractors have been mastered ahead of schedule. Next year, the manufacturers plan to master the production of grain hoppers, inclined chambers, choppers and combine harvester cabs.
The country's largest agricultural machinery localisation centre in Kostanai annually produces 25,000 units, assemblies, components and spare parts for agricultural machinery and automotive industry.
The decision to subsidise farmers when purchasing domestic agricultural machinery this year is already achieving an effect: the interest of foreign manufacturers in localisation will have a positive impact on the growth of production and increase the range of agricultural machinery. Now we are conducting substantive negotiations with foreign manufacturers on localisation of previously imported equipment at the existing sites. This will increase both production volume and jobs in 2025. It is planned to localise AMAZONE sowing machinery, ZOOMLION tractors, SAMPO combines.
Next year, it is planned to allocate 200 billion tenge for preferential leasing of agricultural machinery for farmers at 4-5%. If even half of the funds were allocated in Kazagrofinance JSC from January, before the beginning of sowing works, and the second half in June, before the beginning of harvesting works, then two industries in the country - agro-industrial complex and agricultural machinery - would be guaranteed to work for the development of the country's economy," Kairat Yelamanov said.
The issue of tractor exports remains important, he said. However, the problem is the non-integrated systems of electronic passports of self-propelled machines between Kazakhstan and Russia. Data exchange is already taking place with Belarus.
Another, no less promising area of industry is the production of household appliances. The main enterprises of the new industry are located in the cities of Saran and Almaty. This year about 200 thousand units of household appliances have been produced at the capacities of three enterprises. It is planned to increase the volumes by the end of the year.
This year's amendments to the Tax Code on VAT allowed us to establish a clear procedure for the sale of products along the entire chain from the manufacturer to the end customer. We managed not only to attract the world's leading companies for production, but also to reduce the price for buyers of equipment. At the moment we have already mastered operations on moulding of plastic parts of TV sets and water heaters, billetting, welding, enamelling and painting of parts of ovens, washing machines, cookers and hoods, as well as manufacturing of packaging," Kairat Yelamanov said.
In the coming years, it is planned to master the production of printed circuit board and stamping of metal products.
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Kazakhstan to export domestic vehicles to Afghanistan
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Kazakhstan is to look into the possibility of exporting domestic vehicles to Afghanistan on the proposal of the Afghan side, Deputy Prime Minister Serik Zhumangarin said during the Kazakhstan-Afghanistan Business Forum, Kazinform News Agency correspondent reports.
There are plans to localize and open dealer centers to service vehicles in Afghanistan.
Another topical issue on the agenda of our cooperation is the implementation of joint projects in Afghanistan on geological exploration as well as extraction and processing of solid mineral resources, said Zhumangarin.
Kazakhstan held talks with ERG Exploration, Kazakhmys Barlau, Kazatomprom, engaged in a full cycle of geological exploration prospecting, discussing the realization of joint projects in extraction of copper, iron and gold.
Our country stands ready to share its competences and expertise and to send its exploration companies to create a sustainable mining sector in Afghanistan, said the Kazakh Deputy Prime Minister.
Earlier it was reported that the trade turnover between Kazakhstan and Afghanistan reached 330.7 million US dollars in 8 months of the present year, with Kazakhstani exports amounting to 316.5 million US dollars.
Flour and wheat account for over 80% of the total exports of Kazakhstan to Afghanistan. In its turn, Kazakhstan imports mineral waters, fruits and spices from Afghanistan. Kazakh Deputy Minister Tasszhurekov pointed out that the countries can increase the mutual trade turnover to up to 1 billion US dollars through a close cooperation between their businesses.
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Kazakhstan, Uzbekistan sign 76 documents worth over $350mln
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Prime Ministers Olzhas Bektenov of Kazakhstan and Abdulla Aripov of Uzbekistan are attending the 4th Interregional Forum ‘Uzbekistan-Kazakhstan,’ taking place in Samarkand, Uzbekistan, Kazinform News Agency cites the press service of the head of the Kazakh government.
The event focused on the implementation of the agreements reached between the two countries, boosting the bilateral trade turnover as well as discussed the issues of industrial cooperation, cooperation in water, energy, transit and transport and gas sectors.
Uzbekistan is the main trade partner of Kazakhstan in Central Asia, as the mutual trade stood at 2.5 billion US dollars in 8 months of this year. During the forum, Bektenov highlighted the importance to expand measures aimed at promoting trade and economic cooperation as well as to create favorable conditions for mutual investments.
Kazakhstan and Uzbekistan have broad prospects for joint work in all areas, which is primarily facilitated by the trust-based political dialogue between Heads of State Kassym-Jomart Tokayev and Shavkat Mirziyoyev. Investment agreements and commercial contracts worth 7 billion US dollars, signed during the business forum in Astana, are set to contribute significantly. I’m convinced that today’s meeting will mark the beginning of the realization of new breakthrough projects and make a considerable contribution to sustainable economic development of the entire Central Asian region, stated Bektenov.
There is a huge export potential in petrochemical, metallurgical, automotive, industrial, food, chemical and pharmaceutical sectors. Kazakhstan is ready to boost its exports to Uzbekistan of 40 high-value added products to the tune of over 550 million US dollars.
For his part, Uzbek Premier Aripov highlighted that cross-regional cooperation remains a priority of bilateral relations between the countries.
In the past seven years, the mutual trade turnover between Uzbekistan and Kazakhstan has risen by almost 2.5 times, reaching 4.4 billion US dollars. Presently, there are over one thousand enterprises with the participation of Kazakh capital in Uzbekistan. Bordering regions enjoy direct and close ties - the Republic of Karakalpakstan and Mangistau region, Tashkent and Turkestan regions, Navoiy and Kyzylorda regions. Our other regions also steadily strengthen ties, develop trade relations as well as industrial cooperation. There is a huge potential, which is yet to be realized, said Aripov.
During the forum, special attention was placed to the development of industrial cooperation, providing for implementation of 74 joint projects with total investments of 3.4 billion US dollars and creation of 14.6 thousand jobs. Of these enterprises, 65 are set to be opened in Kazakhstan, ensuring 13.6 thousand new jobs in the country. Nine joint projects have been carried out in Kazakhstan and three more in Uzbekistan, leading to the creation of a total of 4.8 thousand new jobs. They include CKD production of Chevrolet Onix cars in Kostanay, a plant for production of household appliances in Saran, garment and spinning and weaving factories in Shymkent and Turkestan region, a plant for production of autoclaved aerated concrete in Angren and others. The establishment of the International Center for Industrial Cooperation Central Asia is set to give a new impetus to the work of both governments, offering services under the single window principle as well as tax, customs and other preferences for entrepreneurs.
In addition, the issues of developing the transport and logistics potential were under discussion. It was noted that over 50% of Uzbekistan’s trade turnover passes through the territory of Kazakhstan. The countries have established 18 passenger traffic routes by different modes of transport, offering new opportunities for further deepening ties.
Under the 4th Interregional Cooperation Forum ‘Kazakhstan-Uzbekistan’, the business forum, 76 documents worth over 325 million US dollars were signed, including the Practical action plan, providing for realization of joint projects in energy, mining, geology. Agreements on cooperation in trade and economic, scientific and technological, cultural and humanitarian spheres between the regions of Kazakhstan and Uzbekistan were signed as well.
It's worth to note that the forum is a platform to actively address the current challenges and prospects of cooperation. Within the event, the ministers, governors of bordering regions and around 200 representatives of business circles of the two countries discussed the issues of cross-regional cooperation, promotion of mutual trade and creation of joint enterprises. Mechanisms for deeper interaction in metallurgy, construction, mechanical engineering, chemistry, agriculture, food industry, IT and tourism were discussed within the B2B format.
To note, a scientific and cultural center named after Abai and a Kazakh language and literature department of Abai University opened at the Rashidov Samarkand State University in Uzbekistan.
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World Bank: Slowing growth in Central Asia and Europe calls for education reform
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According to the World Bank, economic growth in Central Asia and Europe is stabilizing after several crises but remains weak, reports a Kazinform News Agency correspondent.
World Bank’s Economic Update says that growth in the region is expected to slow to 3.3% this year, down from 3.5% in 2023, and further to 2.6% by 2025. This is far below the 5.1% average of 2000-09 and insufficient for middle-income countries aiming for high-income status.
Lower inflation has led some central banks to cut rates, but concerns about price pressure persist. The World Bank stresses the need for an overhaul of education, especially higher education, to boost human capital and drive long-term economic growth.
Countries of the Europe and Central Asia region have ably navigated the recent shocks of high inflation, the fallout from Russia-Ukraine conflict, and weak expansion in the European Union, the region’s key export market," said Antonella Bassani, World Bank Vice President for Europe and Central Asia.
The forecast for Kazakhstan’s GDP shows growth at 4.7% in 2025, before declining to 3.5% in 2026, following the current rate of 3.4% in 2024.
Growth in Central Asia is supported by private consumption, rising wages, remittances, and tourism, which has surpassed pre-pandemic levels. However, the slowdown in EU exports is a drag on the region’s economy.
Education remains a key challenge, with quality declining, especially in higher education. "The greatest scope for boosting long-term growth in the region lies in raising the quality of education," said Ivailo Izvorski, World Bank Chief Economist for Europe and Central Asia. "Prioritizing quality of education and supporting lifelong learning will help countries bolster their human capital, reduce talent misallocation and waste, energize innovation, and drive sustainable economic growth and development."
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Non-tax payments totalled 921 billion tenge, six times higher than plan
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At the Government session, Finance Minister Madi Takiyev presented the results of execution of the state budget for 9 months of 2024. Excluding transfers received 14.9 trillion tenge, which is 93.2% of the planned. The republican budget received about 9 trillion tenge, primeminister.kz reports.
The Minister noted that the main factor in the failure to fulfil the revenue plan was the decline in tax revenues. Thus, their actual volume amounted to 8.1 trillion tenge, which is 2.6 trillion tenge less than planned.
Madi Takiyev pointed out 3 key factors that affected the fulfilment of targets:
- Reduction in oil production: for 9 months oil production decreased by 5.3 million tonnes.
- Slowdown of the global economy: the factor had a negative impact on foreign economic activity, as a result of which imports decreased by 8.3%, including with PRC by 6.5% and with EAEU countries by 4%. The decline in prices for the main export metals also affected budget revenues.
- Increase in VAT refunds: in the first 9 months of this year, VAT refunds totalled KZT946bn, 3 times higher than last year.
Non-performance on taxes is compensated by an increase in non-tax payments, which with the plan for the reporting period of 148 billion tenge, actually amounted to 921 billion tenge. Over-fulfilment of the plan was ensured due to the receipt of dividends on state-owned blocks of shares, which are in state ownership, in the amount of 684 billion tenge. As for the proceeds from the sale of fixed capital, with the plan of 1.7 billion tenge, the budget received KZT 5.1 billion. It should be noted that the measures taken in the field of digitalisation of administration are one of the effective tools to improve efficiency. Thus, for 9 months of this year in the framework of tax and customs administration provided 794 billion tenge of additional revenues," the Minister said.
Receipts of transfers to the republican budget totalled 4.5 trillion tenge, including guaranteed from the National Fund in the amount of 2 trillion tenge.
Madi Takiyev paid special attention to the results of local budgets. Their own revenues were fulfilled by 115% and totalled 5.9 trillion tenge. The 127% growth was ensured by assigning to local budgets stable taxes that do not depend on external factors. As a result, this expands the financial autonomy of the regions and gives them the opportunity to address pressing issues.
State budget expenditures were executed by 95.6 per cent, republican budget - by 95.5 per cent, local budgets - by 97.4 per cent. The republican budget expenditures amounted to 16.7 trillion tenge, the priority of which remains the preservation of social orientation.
The state fulfilled the main social obligations: pensions and benefits in the amount of 4 trillion tenge, subventions to the regions - 4 trillion tenge, target contribution of the Compulsory Medical Insurance Fund 1.3 trillion tenge. Local budget expenditures totalled 10.1 trillion tenge. The main share of expenditures is also directed to the social sphere amounting to 5.2 trillion tenge or 51%. Expenditure on housing and utilities totalled 1.3 trillion tenge, agriculture 602 billion tenge, transport and communications 918 billion tenge.
One of the important components of budget execution is the public procurement process. More than 120 thousand suppliers and more than 24 thousand customers are registered on the web portal. The volume of public procurement at the end of 9 months of 2024 totalled more than 7.8 trillion tenge. In the past reporting period, the optimisation of budget funds through savings in public procurement amounted to 813 billion tenge," the Minister said.
Conducted 1.2 thousand audit activities to the amount of 6.7 trillion tenge of budget funds. Financial violations for the amount of about 260 billion tenge were identified. Violations for 214 billion tenge have been eliminated.
Work is underway to systematically reduce the share of government procurement from a single source through direct contracting. Thus, from 2017 to 2024, the share of such purchases decreased from 64 per cent to 23 per cent.
The Ministry will continue to work on improving the efficiency of management and utilisation of budget funds, state assets and quasi-public sector entities, including through the expansion of implemented digital tools.
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