Prime Minister instructs to strengthen domestic machine building support and increase shares of Kazakhstani products in EAEU market

22.10.2024, 20:38 50641

Kazakhstan to export domestic vehicles to Afghanistan

Images | gov.kz

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.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

22.10.2024, 17:48 50411

Kazakhstan, Uzbekistan sign 76 documents worth over $350mln

Images | primeminister.kz

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.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

19.10.2024, 10:48 73126

World Bank: Slowing growth in Central Asia and Europe calls for education reform

Images | Depositphotos

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."

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

16.10.2024, 09:49 74446

Investments in education and communications increased by 79.3% and 81.7% respectively

Deputy Prime Minister - Minister of National Economy Nurlan Baybazarov reported on the results of socio-economic development of the country for 9 months of 2024 at the Government session, primeminister.kz reports.

Thus, according to the results of January-September the economy growth was 4%. Due to the measures taken for the third month in a row there is an acceleration of growth. In the real sector it amounted to 5%, production in the services sector grew by 3.8%.

The growth of the economy this year is fully provided by the development of the non-resource sector. Among the sectors, agriculture and construction show the highest growth. Transport services grew by 8%, communications - by 6.4%, trade - by 6.3%, manufacturing - by 4.8%. 65% of GDP growth is provided by trade, manufacturing, construction and agriculture," Deputy Prime Minister said.

Investments in fixed assets grew by 0.6%. The greatest growth is observed in non-resource industries: communications - by 81.7%, education - by 79.3%, transport - by 31.1%, manufacturing - by 6.3%, health care - by 4.8%.

The best indicators are observed in Almaty, Pavlodar, Kyzylorda, Turkestan oblasts and Zhetisu. At the same time, a significant decrease in investment is observed in Atyrau, Akmola, Aktobe and Mangystau regions.

In January-August this year, foreign trade turnover totalled $91.7bn. Exports amounted to $53.5bn, including exports of processed goods - $17.8bn. Imports of goods - $38.1bn. The positive trade balance increased by 34.8% to $15.4bn.

Manufacturing maintains a positive growth rate. The volume of production increased by 4.8 per cent. Growth was recorded in 14 regions. The largest increase is noted in Kyzylorda region, Mangystau region, Turkestan region, Aktobe region and Ulytau. Growth in the manufacturing industry is mainly due to the growth of production in metallurgy by 8.3% and mechanical engineering by 4.2%," the Minister stressed.

In addition, production in the chemical industry increased by 9.5%, electrical equipment by 11.3%, pharmaceutical products by 15%, metal products by 31.1% and furniture by 17.9%.

Nurlan Baibazarov also noted an increase in production in the mining industry by 1.2%. This is due to an increase in the extraction of metal ores by 7.7% and natural gas by 3.4%. Oil production decreased by 0.3%, coal - by 0.5%. However, economic growth excluding oil production is estimated at 4.5% against the corresponding base of the previous year.

Construction also demonstrates high growth rates. The growth of works accelerated to 10.1%. High indicators were ensured due to the implementation of four large-scale initiatives of the Head of State on housing construction, construction of transport and social infrastructure, as well as modernisation of engineering networks.

Positive dynamics was recorded in 18 regions. The greatest growth of construction and installation works is noted in Kyzylorda, Karaganda, Turkestan regions, Zhetisu and Abay. Decrease in construction is noted in Atyrau and Mangystau regions.

In January-September this year, 12.4 million m2 of housing was commissioned, which is 6.2% more than the corresponding period last year. The highest indicators are observed in the city of Shymkent, North Kazakhstan, Pavlodar and Turkestan regions," Nurlan Baibazarov said.

Agriculture has entered an active phase of growth. Due to the accelerated pace of harvesting grain crops, the volume of industry output increased by 11.4%. Including in crop production growth was 17.8%. The best results were shown by Akmola, Kostanay, Karaganda and North-Kazakhstan regions.

To ensure this year's targeted growth of the economy reserves are trade, construction, transport and manufacturing industry.

As part of the implementation of the Action Plan for Economic Growth, central and local executive bodies need to:

Ensure the utilisation of investment budgets with strict control over the amount of utilisation;
Ensure the planned volumes of oil production by the end of the year;
Samruk-Kazyna Holding should ensure that the group of companies increases the purchase of products from domestic producers;
To complete the collection of grain in full volume, Kazakhstan Temir Zholy JSC and interested state bodies to ensure uninterrupted transportation and sale of grain, including for export.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

15.10.2024, 18:54 74026

Non-tax payments totalled 921 billion tenge, six times higher than plan

Images | freepik.com

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.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

15.10.2024, 14:52 74216

Business activity in Kazakhstan remains in surplus for eight months in row

Head of the National Bank Timur Suleimenov told about the results of socio-economic development and execution of the republican budget for 9 months of 2024 at the Government session chaired by the Prime Minister of the Republic of Kazakhstan, primeminister.kz reports.

He reported that the index of business activity, compiled on the basis of surveys of the National Bank, at the end of September this year was 51.2 points. The index remains in the positive zone for the eighth month in a row. In services, the index was 51.6, while in manufacturing the index was 52.4 points.

Meanwhile, the business climate index also remained positive in September. That is, current and future business conditions are assessed positively by the National Bank.

Annual inflation continues to slow down in the country, having made 8.3% in September.

The main contribution to the slowdown in price growth is the disinflation of food products - 5.1%. The growth of prices for non-food products amounted to 7.6%.

At the same time, the highest growth, according to Timur Suleimenov, continues to demonstrate inflation of paid services - 13.6% against the background of the ongoing programme ‘Tariff in exchange for investment’ and appreciation of a number of market services.

As for the monthly inflation, it slowed down in September and amounted to 0.4%, being slightly higher than the historical average.

In general, the price dynamics is in line with the forecast of the national bank and is formed under moderately tight monetary conditions.

Despite the decline in inflation, there is growing pressure on prices due to the presence of risk factors both in the external sector and within the economy.

Pro-inflationary pressures persist in the domestic economy on the back of sustained domestic demand, continued fiscal stimulus, rising inflation expectations, and rising regulated prices.

From the external environment, the risks are associated with the acceleration of inflation in a major trading partner - Russia and rising prices in the world food markets.

In these circumstances, the National Bank did not change the base rate, keeping it at 14.25%.

Also during the Government session, the chairman of the National Bank noted the importance of improving fiscal policy and reducing the volume of transfers from the National Fund.

Separately, Timur Suleimenov informed the Government about the situation on the currency market of the country. In September, the exchange rate of tenge slightly strengthened by 0.1% to 481.11 tenge per dollar. However, since the beginning of the year weakened by 5.8%.

In September, the tenge was supported by currency sales to ensure transfers from the National Fund to the national budget in the amount of $945 million.

Also, as part of levelling possible negative effect on the currency market of purchase of Kazatomprom JSC shares by the National Bank, they were sold $241.5m.

The volume of foreign currency purchase for investment of pension assets of the EPPF amounted to $500 m. In connection with the achievement of the currency share of pension assets of the EPPF target level of 40%, it was decided to suspend the purchase of foreign currency.

According to the head of the National Bank, the further dynamics of the tenge will depend on the expectations of market participants, the situation on world markets and changes in the geopolitical situation.

Timur Suleimenov said that the National Bank will continue to adhere to the flexible exchange rate regime, which excludes the accumulation of imbalances and ensures the safety of foreign exchange reserves.

The current account deficit due to the improved trade balance in 1H decreased to (-)$0.3bn from (-)$5bn in 1H last year.

Gross international reserves at the end of September totalled a record $107.2bn.

At the same time, the National Bank's international reserves increased by 23.6% YTD to a record $44.5bn.

Assets of the National Fund increased by 4.5% YTD, amounting to $62.7 billion. The main source of income was investment income, which accounted for 10.27% or $6.16 billion in 9 months of this year.

Pension assets of the UNPF also continue to show positive dynamics. Since the beginning of the year, they increased by 17.66% to 20.95 trillion tenge. Investment income since the beginning of the year totalled Tg 2.12 trillion. Pension contributions totalled T1.85 trillion, while early withdrawals amounted to T375.5 billion.

Timur Suleimenov said that the National Bank monitors the changing situation in the external and domestic markets and will continue to work to ensure macroeconomic stability and further policy to reduce inflation.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

15.10.2024, 12:33 83206

Olzhas Bektenov on 4% of GDP: Economic growth is ensured by non-oil sector development. Diversification is result of this. Efforts should be redoubled

At the Government session under the chairmanship of Prime Minister Olzhas Bektenov summarised the results of socio-economic development of the country and the implementation of the republican budget for 9 months of this year, primeminister.kz reports.

Deputy Prime Minister - Minister of National Economy Nurlan Baibazarov, Minister of Finance Madi Takiyev, as well as Chairman of the National Bank of Kazakhstan Timur Suleimenov made reports. Akims of a number of regions, where there is a lag behind the planned indicators, were heard on sectoral dynamics and attraction of investments.

According to the Ministry of National Economy, GDP growth for the first 9 months of this year reached 4% compared to the same period last year. This indicator is provided by positive dynamics in agriculture (+11.4%), construction (+10.1%), trade (+6.3%), manufacturing industry (+4.8%). At the same time there is a decrease in oil and coal production.

Head of the Government stressed that the growth of the economy due to the development of industries of non-oil sector, indicates the continued diversification in accordance with the tasks set by the Head of State.

The importance of active work of akimats and ministries to achieve the target economic indicators was noted. Today, steady growth in key parameters is demonstrated by Almaty, Karaganda, Kyzylorda, Pavlodar, Turkestan, East Kazakhstan regions, Astana and Shymkent cities. The lowest indicators were achieved in Atyrau, Mangystau, Zhambyl region, West Kazakhstan and Akmola regions.

Daily monitoring is required, taking timely measures to promote the growth of lagging industries. Akimats need to focus on supporting the manufacturing industry, as well as stimulating construction and trade. There are great reserves here," Prime Minister Olzhas Bektenov emphasised.

Special attention at the meeting was paid to the issue of attracting investment in fixed assets. According to the results of 9 months, 11 regions have not reached the planned indicators.

The relevant ministries and akimats should on a permanent basis assist entrepreneurs in expanding markets for their products and export basket. It is necessary to search for foreign enterprises to relocate production facilities and promote increased localisation at existing production facilities. I set a task for everyone to ensure the fulfilment of the target indicator on investment in fixed assets by the end of the year," Olzhas Bektenov instructed, highlighting the manufacturing sector, agribusiness, transport and logistics, as well as water and electricity supply. The MFA is tasked to strengthen investment work with monthly reporting on the results and problematic issues at meetings of the Investment Headquarters.

As part of the implementation of the Plan of measures to control and reduce inflation, the head of the Government instructed regional akims to continue work to contain prices for socially important goods. In September, inflation slowed down to 8.3%.

One of the priority tasks remains the support of domestic producers and increase in the share of treasury. Prime Minister noted the need for affordable financing of small and medium-sized enterprises with good potential for growth. At the same time, the ministries of industry, finance, national economy together with the Chamber ‘Atameken’ need to ensure effective monitoring of the use of domestic goods.

On disbursement of funds the administrators of budget programmes have been instructed to strengthen financial discipline.

State and local executive bodies need to mobilise all resources for qualitative growth of the economy by the end of this year. In the current conditions it is not easy. Therefore, it is necessary to redouble efforts in this direction. This will require coordinated and effective work of each ministry and the region," Olzhas Bektenov emphasised.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

08.10.2024, 14:15 106551

Kazakhstan’s KazMunayGas pursues sustainable aviation fuel production

Images | KazMunayGas

Kazakhstan's KazMunayGas JSC (KMG) is investigating the potential for producing sustainable aviation fuel (SAF), recognizing it as a key to the future of air transport, Trend.az reports.

The development was revealed following a meeting between KMG Chairman of the Board Askhat Kassenov and IATA Vice President Rafael Schwartzman.

KMG has conducted a comprehensive market analysis and concluded that the development of the aviation sector is directly linked to the adoption of SAF.

This initiative aligns with the global trend to reduce carbon emissions, a commitment Kazakhstan has actively joined through the CORSIA framework aimed at offsetting and reducing emissions in international aviation.

Additionally, Hasenov noted that since 2020, three Kazakh oil refineries have been prepared to produce traditional Jet A-1 aviation fuel. However, a full transition to the new fuel type will require the modernization of the entire infrastructure, from oil depots to airports.

Earlier, Deputy Transport Minister Maksat Kaliakparov and the Chair of the Civil Aviation Committee of Kazakhstan, Saltanat Tompiyeva, also met with the IATA representative. The central topic of discussion was the transition of Kazakhstan's civil aviation to Jet A-1 fuel.

This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.

Prime Minister instructs to strengthen domestic machine building support and increase shares of Kazakhstani products in EAEU market

relevant news

Most viewed

Relevant

Death toll from Spain's flash flood rises to at least 158