29.10.2024, 15:39 143521

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

During the Government session chaired by Prime Minister Olzhas Bektenov considered measures to support Kazakh manufacturers to meet the needs of the domestic market and increase export potential for the development of mechanical engineering, primeminister.kz reports.

Today the market capacity of machine-building products of Kazakhstan is estimated at $31.6 billion, of which 16% falls on the share of domestic production.

The Prime Minister noted the significant potential for growth of the machine-building industry and significant prospects for export development.

We should adhere to economic patriotism to actively buy our Kazakhstani products, promote them in foreign markets," Olzhas Bektenov emphasised.


At the moment, the total volume of imports of engineering products in the market of the Eurasian Union is about $141 billion. Kazakhstan already exports batteries, transformers, cables, locomotives, cars and buses - there are opportunities to increase the share of domestic production in the EAEU market.

Head of the Government drew attention to the situation in a number of sectors of machine building and voiced measures to help solve pressing issues. For example, in the agricultural sector, with the wear of machinery at 76%, the actual rate of renewal is 5%, while the norm is 6-8%. In order to support domestic producers of agricultural machinery, subsidies for imported analogues were excluded this year. In addition, a differentiated approach to subsidising the leasing interest rate has been introduced, whereby the interest rate for local producers is significantly lower. These measures help deepen localisation and accelerate the modernisation of the fleet with domestic equipment.

The level of depreciation of railway equipment is estimated at 55%. In 2024, a mechanism of affordable leasing financing was launched, thanks to which production increased 1.5 times. Olzhas Bektenov noted the need to meet the needs of carriers in full, first of all, at the expense of domestically produced equipment. Head of the Government stressed that it is important to stimulate the launch of new projects for the production of both finished products and components and spare parts.

To support domestic producers Prime Minister instructed the Ministries of Industry and Finance to strengthen control over the fulfilment by contractors of the requirements for domestic share in works and services. Today, despite the removal of a number of machine-building goods from state procurement, facts of purchase of imported products, hidden in the list of purchases, are recorded.

Also, the Samruk-Kazyna Fund, one of the largest consumers of products of domestic machine-builders, has set a task to increase the share of local content in the holding's purchases up to 89 per cent by the end of 2025. Olzhas Bektenov instructed to more actively use the mechanism offtake and long-term contracts, providing for counter obligations of business in order to ensure a multiplier effect for economic growth.
 

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