Kasym-Zhomart Tokayev – addressed the people of Kazakhstan with the annual message

The head of state – Kasym-Zhomart Tokayev – said in the annual Message to the people of Kazakhstan at the joint session of the Parliament chambers that it is necessary to determine key directions of economics development.

Kasym-Zhomart Tokayev stated that the government has to determine key export priorities and industrial lines. It is necessary to significantly expand the toolkit of support measures for domestic manufacturers.

“Packaged provision of grants in kind, privileged financing, partial guaranteeing of export support mechanism, part of major expenses may be reimbursed through offset of tax. It is important to provide for guaranteed purchase by state and pseudo-state sectors and mineral resources users. The most important factor is stability of legislative conditions for the whole period of project implementation. With the purpose of documenting of agreement between the state and investors a new tool will be introduced – strategic investment agreement”, – said the head of state.

This initiative is scheduled for realization by the end of the year within frames of the draft law on restoration of economic growth. In the president’s opinion it is necessary to arrange access of processing enterprises to domestic commodities at acceptable prices.

“I commission the government to develop by the end of the year a regulatory mechanism ensuring full loading of Kazakhstan processing enterprises with raw materials. Regulated purchases have direct effect on development of the industry. The scope thereof makes around 15 trillions of KZT or one fifth of gross domestic product of the country. The objective of the government and mayors is to use this potential to the maximum”, – said Kasym-Zhomart Tokayev.

Previously there was a new law, which improved the purchase system of state authorities. However purchases of national companies still remain non-transparent and difficult to access by ordinary entrepreneurs.

“It is not uncommon that cheap and low quality imported goods are misrepresented as domestic and win in purchase bids. The register of domestic manufacturers and industrial certificates have not yet become a real barrier for false manufacturers. I commission by the end of the year to develop a uniform law covering all purchases in state sector phase. All regulated purchases shall be effected with maximum transparency and exclusively through a single window of purchases. No improvement of legislation will help if there is no relevant law enforcement actions”, – emphasized Kasym-Zhomart Tokayev.

The government jointly with “Atameken” national chamber will prepare by the end of the year specific proposals as to increase of Kazakhstan local content. The task is to increase scope of production in processing industry by one-and-a-half times over five years as a minimum. It is of utmost importance that monetary-credit, taxation and other key policies are not separated from needs of real sector.

“Long oil super-cycle has seemingly come to an end and we have to be ready for completely new world market behavior. Creation of really diversified technologically effective economics is not just a need for us, this way is already without alternative. Whereas the economics has to operate for improvement of people’s welfare. The new economic course of our country shall be based on 7 principles: fair distribution of goods and duties; leading role of private entrepreneurship; fair competition; opening of markets for new generation of entrepreneurs, productivity growth, increase of complexity and technological effectiveness of economics; development of human capital, investments into education; making economics more ecologically friendly, environment protection; adoption by the government of motivated decisions and assumption of social responsibility for them”, – said Kasym-Zhomart Tokayev.