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30 January 2019
The Head of State chairs the governmental meeting
Astana, Ukimet Uyi

Before the meeting, Nursultan Nazarbayev was shown a digital panel in the lobby of Ukimet Uyi with information on outcome of implementing Digital Kazakhstan state program in 2018 and the data of the e-gov’s Situation Centre.

During the extended meeting, the results of the socio-economic development of the country were reviewed and measures were identified to further ensure economic growth.

Opening the meeting, the President of Kazakhstan noted the positive dynamics of economic indicators in 2018.

- Economic growth is more than 4%. In general, positive dynamics is observed in trade - 7.6%, transport sector - 4.6% and industry - over 4%. Other industries also maintain a good pace. Annual inflation was 5.3%. The volume of investments in fixed assets increased by 17.2%, said the Head of State.

During the meeting, the reports of Deputy Prime Minister E.Dosayev, Chairman of the National Bank D.Akishev, Deputy Prime Minister - Minister of Agriculture U.Shukeev, Minister of Industry and Infrastructure Development Zh.Kasymbek, Akim of Zhambyl Oblast A.Myrzakhmetov, Akim were heard West-Kazakhstan region A.Kulginova.

Having listened to the reports, Nursultan Nazarbayev emphasized that the Government, the National Bank and regional akims had carried out significant work, which allowed achieving optimal development indicators.

- The minimum wage has increased by 1.5 times. About 500 thousand people were employed, and 113 thousand families found new housing. The most comfortable conditions for entrepreneurship have been created, the President of Kazakhstan said.

At the same time, the Head of State drew attention to trends in the global economy, stressing the need to further ensure the pace of economic growth.

- Systematic review of state social policy began last year. Within the Five Social Initiatives, the recent Address to Kazakhstan’s Nation and the adopted social package for young people, enormous funds are aimed at ensuring growth of the welfare of all Kazakhstanis. Today, not all countries can afford such an increase in social spending, Nursultan Nazarbayev said.

The Head of State noted that henceforth the incomes and quality of life of the population will become the main criteria for the state’s effectiveness, and the work of each minister and akim will be assessed according to these parameters.

During the meeting, the President of Kazakhstan dwelt separately on the progress and results of actualizing all program documents.

- The Nation’s Plan is tasked with forming a new economic model based on reducing the state’s role, developing private business, competition and the rule of law. GDP growth should occur, first of all, by increasing efficiency, labor productivity and strengthening SMEs. In recent years, the share of SMEs in the economy remains at the level of 25-27%. Our task is to bring it up to 35% by 2025 and at least 50% by 2050, Nursultan Nazarbayev said.

In this regard, the Head of State noted that KZT385 bln. Have been allocated within the Business Roadmap 2020, more than 20 thousand projects received financial support, and about 180 thousand entrepreneurs received appropriate training.

- There is a huge potential for development. For example, only the volume of regulated purchases is over KZT11 trillion. Experts estimate the possibility of replacing imported goods and services worth about KZT1 trillion by national production. At the same time, the output of SMEs declined in Pavlodar and Turkestan regions. I am instructing the Government, together with the akims, to sort it out. Each akim is personally responsible for the development of small and medium businesses. In the Government, Deputy Prime Minister Dosayev is personally responsible, the President of Kazakhstan said.

Nursultan Nazarbayev separately focused on the issues of state participation in the economy and expansion of competitive markets.

- The antimonopoly service should be engaged in creating competitive markets and business expansion. The private sector should be the key driver of economy and productivity. Each akim should clearly understand what the structure of the regional economy will be, due to the level of growth; which sectors will improve, will provide jobs and incomes of the population, the Head of State said.

In this regard, akims, together with Atameken National Entrepreneurship Chamber, were instructed to form a Development Plan for each region, aimed at creating jobs in the context of the development prospects of the region.

At the same time, the President of Kazakhstan pointed out the importance of increasing the share of processed agricultural products in the export structure and ensuring control of tariffs and prices for socially important goods for the population.

Nursultan Nazarbayev paid particular attention to the development of livestock production and the provision of domestic markets for agricultural products.

At the same time, the President of Kazakhstan pointed out the importance of increasing the share of processed agricultural products in export and ensuring control of tariffs and prices for socially important goods for the population.

Nursultan Nazarbayev paid particular attention to animal husbandry growth and provision of domestic markets with agricultural products of domestic production.

The Head of State has also focused on the results of actualizing the industrialization program and the process of attracting investments in fixed capital.

- The second five-year plan of industrialization is coming to an end. 1250 projects were implemented, which played an important role in the industrial development. For the Third Modernization, it is necessary to attract investments in fixed assets at the level of more than 30% of GDP per year. Recently, this indicator is less than 20%. The share of loans to GDP also remains low - 25%. It is about the lack of investment in the real sector. The National Bank needs to be active and promote economic growth, the President of Kazakhstan said.

Nursultan Nazarbayev instructed to work out system solutions to provide the real sector and infrastructure projects with financing, as well as to create a comprehensive investment attraction ecosystem with a focus on investors from developed countries.

- In each branch ministry, akimats, national companies it is necessary to fix a specific deputy, who is personally responsible for investment activities and exports. For coordinated work it is necessary to build an effective interaction. We produce more than 500 new products, export is carried out in 110 countries of the world. However, there are few projects that can really affect the structure of the economy. The volume of exports of high value added products remains virtually unchanged, said the Head of State.

The President of Kazakhstan also pointed out the need for timely resolution of issues in the financial and banking sector of the country.

- In the last 3 years alone, the number of enterprises at the stage of bankruptcy has almost doubled - to 3.7 thousand. Now their debt exceeds 4 trillion tenge. Small business is deeply credited. Business development is constrained by debt and lack of equity capital, said Nursultan Nazarbayev.

The head of state stressed the importance of simplifying bankruptcy procedures and increasing their transparency.

- For 5 years, about 30 changes in legislation have been made, and the situation is not improving. The bankruptcy procedure is applied at late stages, when financial recovery is no longer possible. The government, personally Prime Minister Sagintayev, needs to specifically and systematically understand these issues in the context of regions and enterprises, the President of Kazakhstan said.

In addition, Nursultan Nazarbayev focused on the issues of combating the shadow economy.

- Our goal is to reduce the share of the shadow economy by at least 40% in 3 years. It is necessary to explore the possibility of establishing thresholds for cash withdrawal by legal entities of funds in banks. The government needs to conduct a tax amnesty for individuals, providing for the cancellation of fines, provided they pay the principal debt, said the Head of State.

Paying special attention to the issue of improving the quality of life of the population, the President of Kazakhstan set a number of tasks for the Government and akimats.

- It was not by chance that I have identified the issue of quality of life as a priority. I regularly visit the regions and know well what people are worried about now. Quality of life is not an abstract concept. This is housing, education, health care, social assistance, ecology, roads, public transport, safety, Nursultan Nazarbayev said.

The Head of State emphasized the importance of continuing measures for the regions’ infrastructural growth with an emphasis on the construction of intraregional and district roads.

- On my instructions, based on the results of sociological research, the Presidential Administration has generated the Map of challenges, where system and infrastructure problems are identified in the context of each region: condition of roads, rural water supply, hospitals, schools, utilities and networks. You need to work on the solution of such issues. The developed Map should be transferred to the Government. First of all, it is necessary to solve the pressing issues of the people, the President of Kazakhstan instructed.

The meeting also noted the importance of further work on the construction of housing and access to it for all segments of the population.


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