Six Years of Progress: Kazakhstan on Sustainable Development Pathway

It will soon be six years since Kassym-Jomart Tokayev assumed leadership of our country. During this period, Kazakhstan, despite numerous challenges - from the coronavirus pandemic to global geopolitical tensions - has achieved significant progress in economic development, primeminister.kz reports.

By the end of 2024, GDP reached $288 billion. GDP per capita exceeded $14,000, increasing by nearly 50%. Kazakhstan has moved closer to joining the ranks of high-income countries.

The Head of State has prioritized diversifying the economy with a focus on developing the non-oil sector. Concrete results of this work are already visible - non-resource industries are becoming the main driver of economic growth. Between 2019 and 2024, manufacturing output increased by 31.4%, while the construction sector grew by 96.3%. Overall, the share of manufacturing within industry has now reached parity with the extractive sector.

In 2024 alone, 180 investment projects worth 1.3 trillion tenge were implemented in the processing sector. As a result, this sector recorded almost 6% growth - the highest rate in the past decade. Over six years, production in the machining industry has tripled, with industrial output growing at an average annual rate of 20.3%.

In absolute terms, this equates to 134,000 passenger cars produced versus 30,000 in 2018. A similar trend is observed in truck production, which increased more than sixfold to 7,100 units; bus production rose sevenfold to 2,900 units; and special-purpose vehicles nearly tripled to 711 units.

At the President’s instruction, active development of the oil and gas chemical industry has begun. The country is systematically shifting from raw material exports to deep processing, producing polymers, composite materials, and chemical reagents - high value-added products in demand across various industries. One major project is the KPI plant in the Atyrau region, which has already launched and produces polypropylene. In terms of capacity, this plant surpasses all similar facilities in Central Asia.

Last year’s record grain harvest demonstrates the effectiveness of state support measures for farmers. Over six years, 2.5 trillion tenge has been allocated to subsidize the agro-industrial complex, supporting a 1.8-fold increase in gross agricultural output to 8.3 trillion tenge. Labor productivity per agricultural worker has doubled in five years, reaching 4.2 million tenge, while food production has grown 2.1 times.

Supporting domestic producers remains one of the Head of State’s key priorities. The list of goods, works, and services - including those from the machine-building, metallurgical, construction, light, and chemical industries, as well as food products - that are procured exclusively from Kazakhstani producers has been significantly expanded in public procurement.

At the same time, national development institutions continue to ramp up investments in Kazakhstan’s economy. In 2025 alone, the Baiterek holding will invest 8 trillion tenge, with this figure set to increase to 10 trillion tenge by 2027 at the President’s directive.

A crucial driver of dynamic development is attracting foreign investment, which continues to flow steadily into Kazakhstan’s economy. This underscores foreign investors’ strong confidence in the country’s economic potential, further supported by high credit ratings. In 2024, Kazakhstan received its highest-ever rating of Baa1 with a "Stable" outlook from Moody’s. International agencies S&P and Fitch also reaffirmed Kazakhstan’s investment-grade credit ratings.

Over the past six years, Kazakhstan has attracted $130 billion in foreign direct investment. Notably, foreign partners have increasingly invested in the processing sector, which accounted for $72.7 billion. The UN recognized Kazakhstan as the second-largest recipient of FDI among landlocked countries.

Thanks to the President’s active diplomatic efforts, trade and economic cooperation with other countries continues to grow. As a result, over the past six years, foreign trade turnover increased 1.5 times - from $94.8 billion to $141.4 billion - while exports grew from $61.1 billion to $81.6 billion.

A key achievement has been the growing share of processed goods in exports. By the end of last year, exports of processed goods reached $28.8 billion, nearly double the figure for 2018. The share of machinery, equipment, vehicles, instruments, and apparatus in exports grew from 1.1% to 5.8%. The trend of reducing raw material dependency in exports continued, declining from 74.5% in 2018 to 63.5% in 2024.

Large-scale modernization of the country’s infrastructure is underway under the leadership of the President.

For many years, the heat and power sector was neglected: the wear rate of utility networks reached 65% nationwide, and in some regions - up to 90%. Today, the acute phase of the crisis in the energy and utilities sector has been overcome. While in 2019, the average depreciation of heating sources stood at 71%, it has now been reduced to 61%, and this work will continue.

At the President’s instruction, the National Project was launched last year to modernize 86,000 kilometers of engineering networks and commission new generation capacities. This will reduce accidents by 20%, decrease the average wear of the utilities sector by 40% nationwide, and boost generation capacity by more than 7 GW.

It is important to note that domestic production will be maximized in this area. Enterprises manufacturing products for the utilities sector will be fully utilized. The projected production volume of Kazakhstani companies will total about 3.5 trillion tenge.

Since 2019, electricity consumption has risen by 14% to around 120 billion kWh. Considering population growth and the ongoing policy of industrial development and digitalization, further increases in energy consumption are expected. In this regard, nuclear power development has been launched at the President’s directive. The site for the first nuclear power plant has been identified, and work is underway to select locations for two additional plants.

The construction industry is showing record growth. The volume of commissioned housing in 2024 grew by 6.4 million square meters, or 51.4%, compared to 2018, reaching 19 million square meters. From 2019 to 2024, a total of 97.8 million square meters of housing was delivered, enabling tens of thousands of Kazakh families to purchase homes and improve their quality of life.

In addition, the President closely monitors the repair and construction of roads. Over the past six years, 4,400 kilometers of national highways have been reconstructed. These include major corridors such as Center-East, Center-South, Taldykorgan-Ust-Kamenogorsk, Aktobe-Atyrau-Astrakhan, and others. In 2024 alone, construction and repairs covered 12,000 kilometers of highways - 8,000 kilometers of republican roads and 4,000 kilometers of local roads - a record figure.

In the same period, about 250 new roadside service facilities were built, raising the share of facilities that meet national standards from 52% to 90%.

Against the backdrop of growing freight volumes transported by rail, demand for repair work has increased. In 2024, the volume of major railway repairs rose by 41% compared to 2019. In total, 3,000 kilometers of railways have undergone capital repairs over six years.

This year, the construction of the Dostyk-Moyinty second track will be completed, increasing capacity from 12 pairs of trains to 60. In addition, the Almaty bypass will be finalized, reducing congestion at the Almaty railway hub by 40%.

The implementation of these projects will enhance freight turnover between Europe and China and expand Kazakhstan's export potential.

Maritime transport has also grown by 20% since 2019, with significant gains along the Trans-Caspian International Transport Route. Thanks to ongoing modernization, the transit flow through this corridor has increased sixfold since 2019 (reaching 4.5 million tons in 2024), while exports of Kazakh goods along this route have grown 12 times. The new Astana-Arkalyk-Turgai-Irgiz highway, announced by the President, will further strengthen this route.

Gasification of the country continues. By early 2025, more than 12 million people will have access to natural gas. In 2024, over 1,700 kilometers of gas networks were built. This year, 45 additional gasification projects for settlements are underway, which will expand gas coverage to 12.4 million people and raise the gasification level to 62%.

Providing Kazakhstanis with access to quality drinking water and modernizing the water supply system is a key priority. Significant progress has been made in recent years: while in 2019 water supply coverage stood at 97.2% in cities and 86.4% in villages, these figures have now reached 99.4% and 97.8%, respectively. Out of 6,256 villages, 5,523 now have access to water. The remaining 733 villages will be connected to clean water by the end of this year. Centralized water supply facilities will be built in 238 villages, and complex block modules will be installed in 595 rural settlements.

To address water shortages in Astana, at the President’s initiative, Pumping and Filtration Station No. 3 with a capacity of 105,000 cubic meters per day was completed in 2023. Work is also starting on a water pipeline from the Satpayev Canal, which will ensure a long-term solution to the capital’s water supply.

Alongside infrastructure modernization, gasification, and road construction, protecting citizens from emergencies is of critical importance. A series of tragic events revealed deficiencies in the material and technical capacity of emergency services.

At the President’s directive, modern rescue vehicles, equipment, and gear have been purchased to ensure prompt and effective emergency response. Over the past six years, equipment levels have risen from 53% to 64% and will continue to improve.

These measures have strengthened both emergency preparedness and public safety. New technological solutions, including a nationwide public alert system, are now being implemented.

Kazakhstan’s integrated security approach also involves enhancing crime prevention and law enforcement under the "Law and Order" principle. Since 2019, the overall crime rate has dropped by 52%, and by 60% in public spaces.

The protection of citizens' rights, particularly women and children, is a priority. Kassym-Jomart Tokayev consistently advocates zero tolerance for domestic violence. As part of this policy, a law has been adopted to toughen penalties for domestic violence, including the criminalization of battery and intentional infliction of minor bodily harm, previously regulated only by administrative law.

Additionally, the Head of State has announced a new unified programme, "Children of Kazakhstan," aimed at systematizing and expanding support for the younger generation.

At the National Kurultai held on March 14 this year, the President once again emphasized that Kazakhstan is a social state - a principle reflected in tangible state measures aimed at improving social indicators.

Over the past six years, the minimum wage has gradually doubled from 42,500 to 85,000 tenge, positively impacting the well-being of around 2 million citizens. Salaries for approximately 600,000 teachers have doubled, while doctors' salaries have increased by 30% annually for three consecutive years. Salaries for mid-level medical personnel have risen by 20%, and wages for 38,000 social workers have also doubled. An allowance for large families, regardless of income, has been introduced, and childcare benefits have been extended from one year to one and a half years. A special allowance has also been introduced for workers in hazardous industries.

Since 2019, life expectancy has risen from 73 to 75 years. Total mortality has decreased by 7.8%, maternal mortality by 26.3%, and infant mortality by 15.8%, driven by improved prevention measures and expanded screening coverage.

Since 2019, 955 healthcare facilities have been built across the country, including major institutions such as the National Scientific Oncology Center and the National Emergency Medicine Coordination Center.

Thanks to the special presidential program "Ansaghan Sabi," more than 9,000 babies have been born to families who were previously unable to have children since 2021.

Particular attention is being paid to strengthening the human resources of the healthcare system, especially in rural areas. For example, a one-time payment of 8.5 million tenge has been introduced for medical professionals who agree to work in rural communities for a minimum of five years. Additional tools are in place to help resolve housing issues for these workers.

In education, efforts are focused on eliminating shortages of places in schools and kindergartens, improving the quality of education, and raising the status of teachers. Over the past six years, 1,367 kindergartens have opened, reducing waiting lists fivefold. All children from socially vulnerable families now receive free meals.

Since 2019, Kazakhstan has built a record number of schools - 1,200 educational institutions, creating around 1 million new student places.

More than 3,000 rural schools have been modernized, resolving issues related to 32 emergency schools, 71 three-shift schools, and space shortages in 200 schools across Kazakhstan.

The construction of approximately 200 more schools will continue this year. Additionally, the President has instructed the modernization of 1,000 schools in district centers and villages. This is especially important, as two-thirds of all secondary schools are located in rural areas.

The Year of Vocational Professions, declared by the President, has provided momentum for enhancing technical and vocational education. Partnerships between colleges and industrial enterprises are being strengthened to train qualified and in-demand personnel for Kazakhstan’s new economy. Currently, 410 educational institutions are supported by 498 companies, and 180 colleges have been modernized under the "Zhas Maman" project. Scholarships for college students have increased by 50%, and 251 dormitories for 62,000 university students have been built.

Supporting scientific personnel is no less important, especially given that the share of young people in science has increased sixfold over the past six years, reaching 46%. To this end, the number of educational grants for doctoral programs is increasing, and opportunities for conducting research are expanding.

A key focus is on introducing scientific achievements into the real economy and commercializing research. This year alone, 2,297 scientific projects and 299 scientific and technical programs are underway. Young scientists are actively engaged, with 1,055 projects currently being implemented.

Regarding commercialization, 208 projects have already been successfully launched, and more than 180 have reached the sales stage. The total contribution of these projects to the national economy amounts to 118.7 billion tenge. Over 2,000 new jobs have been created, 25 projects have entered export markets, and six projects have achieved sales exceeding 1 billion tenge each.

Sports infrastructure is also rapidly developing. Over the past six years, 314 sports and fitness centers and 58 swimming pools have been built across the regions. The number of children's and youth sports schools has increased by 40, from 481 to 521. As a result, the share of citizens regularly engaged in physical culture and sports has risen from 31.5% (5.9 million people) to 41.4% (8.4 million people).

The President’s directive to channel proceeds from the recovery of illegally withdrawn assets toward solving social issues has become an effective tool for modernizing social infrastructure.

More than 194 billion tenge has already been transferred from the Special State Fund to implement about 280 projects in education, healthcare, sports, social security, as well as to modernize utility networks and water facilities.

The Head of State places particular emphasis on full-scale digitalization and the widespread introduction of artificial intelligence, which are to become new drivers of economic growth.

Kazakhstan has already achieved notable success in this area, increasing IT service exports and confidently leading Central Asia’s digital sector.

This is an industry where Kazakhstan holds competitive advantages. Digital solutions have become firmly integrated into various spheres, ensuring efficiency and accelerated development. Tools such as the Digital Family Card, Social Wallet, and digital vouchers for kindergartens are actively used. Additionally, Kazakhstan has created QazaqLaw (a legislative assistant), a national LLM language model, and is developing solutions such as Digital Business Card and others.

The volume of innovative products has more than doubled over the past five years - from 1.1 trillion to 2.4 trillion tenge.

To stimulate AI development, the President has established the Qazaqstan Venture Group, a fund of funds based at the Astana International Financial Centre, with a target funding volume of $1 billion. The fund will prioritize investment in innovative projects in Kazakhstan and Central Asia.

The Alem.ai International Centre for Artificial Intelligence, which will contribute to the country’s accelerated digital transformation, is set to open this year.

At the recent meeting of the National Kurultai, Kassym-Jomart Tokayev highlighted the great potential for advancing digitalization, artificial intelligence, transportation, energy, the agro-industrial sector, and human capital. The government will make every effort to achieve these goals.

As you can see, we have accomplished much over the past six years, but even more ambitious tasks lie ahead.

I am confident that, under the steady leadership of Kassym-Jomart Tokayev, Kazakhstan will achieve great success and fully realize its immense potential.