04.10.2024, 11:16 68771
Kazakh President receives heads of CIS security agencies
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The Kazakh President received heads of delegations who arrived to take part in the 55thsitting of the Council of heads of security agencies and services from CIS member states, Kazinform News Agency learnt from the Akorda press service
The President said this platform serves as an instrument for coordinating security efforts emphasizing that the role of the Council is growing stronger in present-day conditions.
Kassym-Jomart Tokayev expressed confidence that the outcomes of the Council sitting will create conditions for further development of cooperation between the CIS security services and contribute to strengthening cooperation in ensuring international security.
The heads of delegations from Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, the Executive Committee and the Anti-Terrorism Center of CIS member countries attended the meeting.
The 54th meeting of the CIS security agencies took place in Bishkek last May.
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31.10.2024, 19:14 16251
Olzhas Bektenov discusses investment cooperation with CII meeting participants
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In Astana, within the framework of the work of the meeting of the Council of Foreign Investors, chaired by Head of State Kassym-Jomart Tokayev, held a number of meetings with participants of the meeting at the government level. They discussed issues of co-operation in the implementation of joint investment projects, cooperation in the oil and gas industry and energy sector, primeminister.kz reports.
At the meeting of Prime Minister Olzhas Bektenov with the President of the European Bank for Reconstruction and Development Odile Renaud-Basso considered the prospects of the EBRD's participation in major infrastructure projects, including within the framework of the National Infrastructure Plan until 2029. In total, with the participation of the EBRD in Kazakhstan successfully implemented more than 300 projects worth more than $ 11 billion, one of the largest is BAKAD. Attention is paid to co-operation in the field of SME support and implementation of PPP projects. In this area, the EBRD is financing the construction of a 630-bed multi-profile hospital in Kokshetau.
The Government is currently working on the preparation of a pool of large-scale turnkey PPP projects with the involvement of international financial institutions. In addition, the issues of decarbonisation of the economy and joint implementation of projects in the transport and logistics sector, including those aimed at the development of the Middle Corridor, etc. were considered.
During the collective meeting with the representatives of the world's leading energy corporations, topical issues of co-operation in the oil and gas sector were considered. The meeting was attended by the Executive Vice President of Shell Plc. Peter Costello, Senior Vice President for Conventional and Heavy Oil Production at ExxonMobil John Whelan, Senior Vice President for Asia-Pacific at TotalEnergies Exploration&Production Charles Fernandez, Director for Exploration and Production of Natural Resources at Eni S.p.A Luca Vignati.
The companies are part of the NCOC consortium involved in the development of the Kashagan field, the country's largest offshore oil and gas project. Representatives of oil and gas companies noted the wide opportunities for the implementation of investment projects and emphasised the commitment to further expansion of long-term cooperation in the oil and gas sector. The Government of Kazakhstan reaffirmed its readiness for an open and constructive dialogue in addressing all open issues. Following the discussion, the participants of the meeting emphasised the importance of timely implementation of further stages of field development (2A and 2B).
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30.10.2024, 18:13 15716
Draft reform of phytosanitary control system presented in Government
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Deputy Prime Minister Serik Zhumangarin heard proposals from the Ministry of Agriculture to improve the efficiency of the phytosanitary control system in Kazakhstan, primeminister.kz reports.
Specialists, machinery, laboratory equipment and internet at posts are key elements of the proposed reform of the phytosanitary inspection system in Kazakhstan. The phytosanitary inspection system in the regions is divided into two main areas: plant protection (control of locusts and other dangerous pests and plant diseases) and plant quarantine (control of export-import regulated products).
Plant protection is handled by territorial inspectors and phytosanitary control at the border is handled by quarantine inspectors. The number of quarantine and territorial inspectors does not grow with the annual increase of workload. Moreover, there is an acute shortage of phytosanitary specialists in the field.
At present, out of 77 existing phytosanitary quarantine posts, five posts have no control at all due to lack of specialists, and 22 posts have no attached inspectors, inspectors from district or regional inspections are sent there. The deficit of staff units of quarantine inspectors is more than 150 people, more than one hundred - territorial inspectors on plant protection. Also, for effective work, modular or stationary laboratories need to be set up at border checkpoints," Deputy Minister of Agriculture Ermek Kenzhekhanuly said.
More than half of the equipment fleet at territorial inspections, which is necessary for timely detection and control of locust outbreaks, is worn out. At least 86 units of equipment are needed for renewal. There is a lack of quarantine laboratories. In particular, only 18 laboratories are functioning on the basis of the Republican Centre of Plant Quarantine, while the number of conducted examinations is growing annually: 27 thousand in 2022, 28 thousand in 2023, and already 30 thousand in 9 months of 2024.
Due to the lack of internet at 32 phytosanitary quarantine posts documents are executed in paper form. In addition, without the Internet specialists will not be able to have access to the EASU system for verification of documents that arrived and crossed the border," Yermek Kenzhekhanuly explained.
Also at the meeting they voiced the project of reforming the structure of the phytosanitary service, aimed at improving the effectiveness of the fight against locusts and dangerous plant diseases.
In order to increase transparency and traceability of veterinary and phytosanitary documents between Kazakhstan and Russia and within the perimeter of the EAEU countries, the integration between the Unified Automated Management System and information systems of the EEC and the Russian Federation is being finalised.
Deputy Minister of Agriculture Baglan Bekbauov noted that due to integration Russian specialists will be able to see in their information system information about issued veterinary and phytosanitary supporting documents (phyto/vet certificates), have access to a single database of permits for import, export, transit of controlled goods, as well as to the register of organisations and persons engaged in the production, processing, storage of goods. Thus, after the integration of information systems, the problem of verification of phyto and veterinary certificates will be solved.
Works on test connection to the National Gateway have already been carried out and messages have been successfully delivered to the EEC loop. Work is underway to finalise the functionality. It is planned to join the EEC information system already this year," Baglan Bekbauov noted.
Deputy Minister also said that the EASU is developing a module for traceability of crop production, similar to the module Vet Monitoring in the system of Identification of Farm Animals (IFA). This year it is planned to launch the traceability module in crop production in the pilot mode, next year to begin implementation.
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30.10.2024, 16:10 15876
Majilis approves Law on Republican Budget for 2025-2027
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Prime Minister Olzhas Bektenov and members of the Government took part in the plenary session of the Majilis of the Parliament of the Republic of Kazakhstan. The deputies considered and adopted the draft laws "On the Republican Budget for 2025-2027", "On guaranteed transfer from the National Fund of the Republic of Kazakhstan for 2025-2027" and the Forecast of socio-economic development of the country for 2025-2029, introduced by the Government, primeminister.kz reports.
Deputy Prime Minister - Minister of National Economy Nurlan Baibazarov presented to the deputies the draft law "On guaranteed transfer from the National Fund for 2025-2027" and the Forecast of socio-economic development of the country until 2029.
The Law "On guaranteed transfer from the National Fund of the Republic of Kazakhstan for 2025-2027" is developed on the basis of the provisions of the Budget Code. It sets the cut-off price for oil at $42.3 per barrel in 2025, $41-$39.4 per barrel in 2026-2027. Taking this into account, the size of the guaranteed transfer to the republican budget for 2025-2027 is determined in the amount of 2 trillion tenge annually.
The base scenario with oil price of $75 per barrel and dollar exchange rate of 470 tenge is taken as a basis for the formation of the Forecast of socio-economic development of the country until 2029. It is expected that real GDP growth in 2025 will be 5.6%, average annual growth over 5 years is 5.4%. In this case, positive dynamics is projected in all sectors of the economy of Kazakhstan: the average annual growth rate in industry will be 4.1%, including manufacturing industry 5.8%, mining industry 2.9%. In agriculture, the average annual growth will be 5.3%, in construction 9.3%, transport services 8.2%, trade 7.1%.
In addition, exports of Kazakhstani goods are forecast to grow to $90bn in 2029 and the republican budget revenues are expected to increase to 18.2 trillion tenge in 2027, or by 16.4%. The main growth will be provided by the pace of economic development, improvement of tax administration and reduction of the share of shadow economy.
When presenting the draft law "On the Republican Budget for 2025-2027" to the deputies, Finance Minister Madi Takiyev noted that the revenues to the national budget in 2025 will amount to 21.7 trillion tenge with an increase of 1.2 trillion tenge against the plan of the current year. At the same time, the budget remains socially oriented. Total for the social sphere in 2025 is planned to allocate 9.8 trillion tenge with an increase to the current year by 862 billion tenge. It is noted that the bill was amended to improve the quality of life of the population and the development of regions. In addition, the expenditures are provided for the provision of clean drinking water, the development of heat, electricity, transport, engineering and communications infrastructure, the development of regions, the implementation of the project "Auyl - el besigi".
Social security and provision of social assistance to the citizens of the country is a priority. Expenditures on social payments for 2025 are envisaged in the amount of 6 trillion tenge, taking into account the indexation of social payments and the increase in the number of their recipients. Over 1 trillion tenge will be allocated for the development of education in 2025 with an increase of 73 billion tenge. 7.6 trillion tenge is envisaged for the health care system for the period from 2025 to 2027, including 2.4 trillion tenge in 2025 with an increase of 180 billion tenge.
Regions will be allocated 7.5 trillion tenge from the national budget in 2025 with an increase of 405 billion tenge. It is also important to support the development of the real sector of the economy: 2.1 trillion tenge is envisaged for this direction in 2025.
During the plenary Government session, members of the Government answered questions from parliamentarians. Thus, Majilis deputy Askhat Rakhimzhanov addressed a question to the Prime Minister regarding the plans for the Government's fulfilment of the President's instruction to ensure the growth of Kazakhstan's economy to $450 billion by 2029.
According to the Forecast of socio-economic development of the country for 2025-2029, the base scenario, annual GDP growth, on average, is planned at the level of 5.4 per cent. If this figure is achieved, the country's Gross Domestic Product will increase from $321bn in 2025 to $498bn in 2029. Thus, the task set by the Head of State to bring GDP to $450bn by 2029 will be fulfilled. But the Government sets higher benchmarks in its work, which are envisaged in the approved National Development Plan of the Republic until 2029. According to this document, the annual GDP growth should be from 5.6 % to 6.9 % per year. This is a very ambitious task. In order to achieve such indicators, it is necessary to actively work on diversification of the economy, increase its complexity, organise the launch of production of high-value-added products in the country, and move away from dependence on raw materials. As you know, according to the results of 9 months of the current year, GDP growth was 4%. Moreover, the growth was achieved against the background of a decline in oil production. That is, we are growing at the expense of other, non-oil industries. The economy is developing at the expense of agriculture, which grew by 11.4%. At the expense of transport and trade, which showed growth above 6%. Construction grew by more than 10%. Thus, growth in these sectors allows us to support the economy. Of course, this is not enough. We realise this, and therefore we will work and are already working on a key issue: attracting serious amounts of investment into the economy to implement major industrial and infrastructure projects in the country. One of the points of growth will be the implementation of the National Infrastructure Development Plan, which provides for very serious investments in infrastructure. Also, as instructed by the President in his Address, a new National Project to modernise the housing and utilities system is at the final stage of development. The National Project envisages a total investment of about 10 trillion tenge until 2029-2030. The project will bring serious upgrades to the engineering infrastructure, which, as you know, is in a rather deplorable state. These are great reserves for our domestic business. In the National Project, we envisage preferential purchase of all goods, works and services from domestic entrepreneurs. Thus, there is a lot of work to be done to achieve the ambitious goals. The instruction of the President will be unambiguously fulfilled," Prime Minister stressed.
First Deputy Minister Roman Sklyar, Deputy Prime Minister - Minister of National Economy Nurlan Baibazarov, Deputy Prime Minister - Minister of National Economy Tamara Duisenova, Ministers of Finance Madi Takiyev, of Science and Higher Education answered the questions of the deputies concerning GDP growth, budget planning, development of regions, key sectors of the economy, social support of the population, passing of the heating season, repair of roads, water supply, accessibility of the Internet, provision of medicines to the population, activities of the domestic film industry, etc.
Following the plenary session, the Prime Minister thanked the deputies of Majilis for supporting the bill on the republican budget and constructive discussion. Olzhas Bektenov stressed that members of the Government worked closely with the deputy corps and this practice would be continued.
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30.10.2024, 10:08 16346
Digital transformation in higher education
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The government of Kazakhstan is implementing a large-scale programme to modernise higher education in partnership with Coursera, primeminister.kz reports.
With the transition from a commodity-based economy to value-added production and the challenges posed by the COVID-19 pandemic, it was important for the country to rethink its approach to education.
The growing need for a skilled workforce with digital skills underscores the need for higher education reform. According to Tableau's report, by 2025, 70% of workers will actively use data in their work, which confirms the relevance of Kazakhstan's efforts to prepare students for today's challenges, including language barriers, skills mismatch, limited international experience, and technological integration.
As noted by Sayasat Nurbek, Minister of Science and Higher Education of Kazakhstan, the country needs a skilled labour force to transition to value-added production.
In this regard, in September 2022, the President of Kazakhstan Kassym-Jomart Tokayev discussed with Coursera CEO Jeff Maggioncalda the possibilities of cooperation. As a result, the Ministry of Science and Higher Education of the Republic of Kazakhstan became a Coursera partner, which enabled the introduction of professional certificates and courses to train students in in-demand areas such as cybersecurity and programming.
The collaboration introduced professional certificates, courses and specialisations to train students in cybersecurity, project management, UX design and software development.
The project initially covered 25 universities, but expanded to 93 higher education institutions in just one year. Coursera courses were gradually integrated into the curriculum, offering students blended learning and self-paced courses.
In 2023, 853 Coursera standalone courses replaced 116 university disciplines, and 3,244 courses were partially integrated into 1,631 disciplines. In 2023 alone, more than 46,000 students earned 73,000 certificates in various disciplines.
Collectively, these efforts are helping not only to modernise Kazakhstan's education system. We make sure that our students are prepared to succeed in a globalised digital world. This is the future of education in Kazakhstan, and we aim to become leaders on this path," Sayasat Nurbek said.
Kazakhstan's professional development programme is already generating interest among faculty. More than 300 faculty members have even begun developing their own courses. The introduction of artificial intelligence technologies into the teaching process also creates new opportunities for adapting content to local conditions.
The Kazakhstan Higher Education Digital Transformation Initiative essentially demonstrates how joint efforts of the Government, educational institutions and businesses can create a workforce ready for the challenges of the future.
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29.10.2024, 22:29 16641
According to 9 months of 2024 in Kazakhstan produced more than 5 thousand tractors and combines
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Kazakhstan plans to increase the volume of machine-building production by 2 times by 2028. This was reported by Minister of Industry and Construction Kanat Sharlapayev at the Government session chaired by Prime Minister Olzhas Bektenov, primeminister.kz reports.
The institutional basis for the development of the machine-building industry is defined in the Law "On Industrial Policy", adopted in 2021, and the Comprehensive Plan for the development of mechanical engineering for 2024-2028, approved in 2023. The tasks are to improve the competitiveness of machine-building enterprises by creating affordable financial instruments, introducing new technologies, strengthening personnel training, increasing local content and promoting exports.
As the Minister noted, the manufacturing industry has caught up with the mining industry in terms of volumes and continues to grow. One of the leading positions is occupied by the machine-building industry - almost 20 per cent. About 4 thousand companies operate in the industry, employing more than 120 thousand people. According to international experience, the creation of one job in the industry stimulates the emergence of about seven or eight jobs in related industries. One of the main advantages of machine building development is its powerful multiplier effect.
For 9 months of 2024, the industry attracted about 124 billion tenge of investments, a 2-fold increase. The volume of production totalled more than 3 trillion tenge. The physical volume index is 104.2%. In the structure of mechanical engineering, the largest share is occupied by automotive, railway and electrical engineering.
According to the results of 9 months of the current year, more than 82 thousand units of passenger cars were produced. Emphasis has been placed on increasing the production of cars by small-unit assembly. The construction of the plant for production of CHANGAN, HAVAL, CHERY cars with the production based entirely on small-unit assembly with the capacity of 90 thousand units is nearing completion.
The construction of a plant for the production of KIA automobiles is underway. The investment amount is $200 million. A project for the production of passenger cars Geely, Exeed, KAIYI has been launched for the amount of $150 million. Further development of the sector is planned through deepening of localisation and development of component base production. Serial production of multimedia systems and car seats is expected to be launched in Almaty this year.
In railway machine building enterprises produced products worth 423 billion tenge, an increase of 1.5 times. At the end of the year we set the task to ensure the growth of production of freight cars in 4 times - up to 2 thousand units, passenger cars up to 122 units and locomotives up to 130 units. Production of locomotives based on Wabtec and Alstom technologies, as well as freight and passenger cars has been established," Kanat Sharlapayev said, stressing that railway engineering is characterised by a huge potential for development. Currently, the total fleet of rolling stock is about 139 thousand units. The average depreciation is 55%. In this regard, work is underway to launch new projects.
This year TexolTrans started the implementation of a project for the production of freight cars and tank cars with a capacity of 6 thousand units per year. In 2025 the production of passenger cars will be launched at the plant ‘Stadler Kazakhstan’ with a capacity of 100 units per year. ‘Semipalatinsk Machine Building Plant’ is working to organise the production of gondola cars in the amount of 600 units per year. The project on creation of bandage complex ‘Railcast Systems’ is being realised. The launch date is 2025-2026. In 2025, Vostokmashzavod plans to complete the modernisation of the shop, which will ensure import substitution of medium and large wagon castings. It also plans to launch a spring production plant in the Kostanai region at the end of 2024.
In agricultural machine building for the last 5 years the production volumes in physical terms have increased 4 times. According to the results of 9 months of this year, more than 5 thousand tractors and combines were produced. Kazakhstan agricultural producers are provided with modern machinery of domestic production, including world brands Claas, Horsch, Deutz Fahr. This year, new major investors - Amazone and Zoomlion - have been attracted. Production of large-size parts was launched: tractor cabs and combine hoppers. Co-operation between manufacturers and related industries has been established," the Minister stressed.
He also said that in the city of Kostanai a Localisation Centre has been created, where workshops for the production of component base have been set up. Further development of the sector will focus on increasing production of mounted and trailed machinery, the production of which does not fully cover the needs of the domestic market.
Kanat Sharlapayev noted that the electrical engineering sector is characterised by the greatest competitiveness, which is confirmed by annual export volumes of transformers, batteries, capacitors and cable products. The sector is working to ensure the utilisation of enterprises through the introduction of priority procurement in public procurement and increasing the in-country value in the procurement of subsoil users. At the end of 9 months, there was an increase in production of lead accumulators and cable and wire products by an average of 17 per cent. In order to develop new types of goods, projects for the production of energy-efficient transformers and industrial batteries are being launched.
Domestic manufacturers produce kitchen household cookers, mini ovens, washing machines, televisions, water heaters, hoovers, extractors. We set ourselves the task of scaling up the production of consumer goods by attracting international investors. The oil and gas and mining and metallurgical engineering sectors have seen growth in production indicators. The country has the capacity to produce pumps and compressors, valves, stop valves, hydraulic and pneumatic equipment. Measures are being taken to reduce the share of imports of oil and gas and mining and metallurgical engineering. At the end of 2023, it exceeded $3 billion. In this regard, we have started work on changing the legislation in terms of introducing responsibility for the conclusion of long-term off-take contracts," Kanat Sharlapayev informed.
In the mechanical engineering sector, 2 sustainable clusters have been formed in the cities of Ekibastuz and Saran. In Ekibastuz there is a cluster of 6 enterprises producing a wide range of products for the railway industry with a total number of 2 thousand people. In addition, 3 projects worth 104 billion tenge are being implemented. A cluster of 6 enterprises has been formed in Saran, 3 of which belong to the machine-building industry. Diversification of the economies of these cities has been achieved, which allowed Saran from the status of a single-industry town. In addition, 2 new engineering projects are being developed, including a project to create a localisation centre for the production of electrical components for household appliances. In the future, it is planned to extend the cluster approach to other machine-building sectors.
The Ministry is taking a number of important measures to support domestic enterprises:
- in order to increase the share of products manufactured in Kazakhstan, the work on concluding long-term agreements and off-take contracts has been strengthened;
- priority purchase of more than 1.5 thousand machine-building goods has been introduced within the framework of state procurement;
- the issue of financing of machine-building projects is being worked out, the need is 600 billion tenge for 5 years;
- The Ministry, together with enterprises, is working on strengthening targeted training of personnel on the basis of dual training.
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29.10.2024, 19:25 16831
Kazakhstan Automobile Union: 10 car component manufacturing projects in work, some of which already been launched
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President of Kazakhstan Automobile Union Anar Makasheva at the Government session chaired by Prime Minister Olzhas Bektenov reported on the development of the automotive industry, primeminister.kz reports.
The domestic automotive industry today consists of eight enterprises producing vehicles. In the first 9 months of 2024, 91 thousand units of motor vehicles were produced in Kazakhstan, with an industrial production index of 86.7%.
The Head of State in his Address noted the need to increase localisation and transition to the production of automotive components. Already today our manufacturers have committed to deepening technological operations for small-unit production, which is the basis for the development of production of automotive components," Anar Makasheva noted.
At the stage of implementation of large-scale projects, such as: multi-brand plant in Almaty, plant for the production of Kia cars in Kostanai.
These projects are direct co-operation with world manufacturers. Modern equipment is being installed at the enterprises, over 30 per cent of the production volume will be immediately produced by the small-unit method. In all countries of the world there was a stage-by-stage development of production. The first stage of development of automobile industry in Kazakhstan has already been completed," Anar Makasheva emphasised.
Today there are 10 projects in the works to produce automotive components, some of which have already been launched. According to the head of the automotive union, this will partially reduce dependence on imported supplies, ensure the stability of production processes, reduce the cost of products and create jobs. Industrial co-operation between manufacturers of vehicles and auto components is being established at production sites in the cities of Kostanai and Almaty.
It is proposed to use the cluster method by creating a belt of small and medium-sized businesses around existing enterprises. That is, if production of such a component has already been established in Kazakhstan, all car manufacturers buy from this supplier. This eliminates excessive duplication and enables the development of more projects in this area," Anar Makasheva explained.
Such measures help develop the component base and attract investment to Kazakhstan. Moreover, each job in production creates an additional 7-8 jobs in related industries. Manufacturers will be able to increase localisation and reduce the cost of cars.
We have an ambitious task to organise additional jobs in the industry. About 5 thousand new employees are needed already during 2025. The President noted the acute problem of the shortage of industry specialists. There is a particular shortage of engineers and representatives of working professions. All manufacturers work closely with colleges and higher education institutions throughout Kazakhstan. But working specialities are less popular and the number of interested students is limited. We fully support the President's initiative to improve the image of working professions and reform the education system. These include grants for engineers, experience exchange and dual training programmes, and the construction of dormitories. A systematic approach is needed here. In turn, the automotive industry offers grants, training, and a social package for its employees," Anar Makasheva summarised.
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29.10.2024, 17:23 17046
Labour productivity in machine building planned to double
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Chairman of the Union of Machine Builders of Kazakhstan Meiram Prsembayev at the Government session noted that for further development of the industry the work is carried out in accordance with the approved Comprehensive Plan for the development of mechanical engineering for 2024-2028, which includes 79 measures in 7 key areas, primeminister.kz reports.
Within 5 years it is envisaged to finance Industry Development Fund JSC in the amount of 600 billion tenge for the creation of new and modernisation of existing production facilities, DAMU JSC for 50 billion tenge, which will allow financing SMEs by commercial banks to the amount of about 370 billion tenge.
Set target indicators to increase the index of physical volume by 2.2 times, production in money terms by 4.5 times, exports by 3 times, labour productivity by 2 times, investment by 1.5 times. We are planning to make a worthy contribution to doubling the country's GDP by 2029, as instructed by the President," Meiram Prsembayev said.
The Head of State in this year's Address instructed to approve the National Project on modernisation of the energy and utilities sectors.
We have sufficiently developed production of products for housing and communal services. There is potential and competences for the production of energy equipment. Undoubtedly, the modernisation of these sectors will increase the capacity of the market, thereby increasing the load of enterprises of the manufacturing sector and opening opportunities for localisation of new production," Meiram Prsembayev stressed.
He asked to provide manufacturers with full information about the facilities planned for modernisation and the need for machine-building products. It was also proposed to introduce an effective mechanism for the conclusion offtake contracts within the framework of the National Project.
The Chairman of the Union of Machine Builders of Kazakhstan touched upon the issue of increasing labour productivity.
It is possible to achieve higher productivity by 2029 through the use of robotic complexes in production, which clearly proves the experience of countries with developed economies. We propose to include the introduction of robotic complexes in the documents of the State Planning System, where it is necessary to clearly spell out the indicators of productivity growth, to provide support mechanisms from the state," Meiram Prsembayev summarised.
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29.10.2024, 13:35 19981
Government considers issues of machine building development and measures to support domestic production
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At the Government session chaired by Prime Minister Olzhas Bektenov considered the development of mechanical engineering. On the situation in the industry reported the Minister of Industry and Construction Kanat Sharlapayev, with reports were made by representatives of industry associations such as the Union of Machine Builders Meiram Prshembayev and industrial investors Kairat Yelamanov, Kazakhstan Automobile Union Anar Makasheva, primeminister.kz reports.
According to the results of 2023, the share of mechanical engineering in the GDP structure reached 1.9%. There is an increase in production volume, positive dynamics of investment attraction. For 9 months of the current year, about 108.2 billion tenge was invested in Kazakh projects, which exceeds the volume for the same period last year by 2.2 times.
One of the key issues of the sector is modernisation of equipment. Prime Minister noted that in the machine building industry wear and tear of equipment reaches 40%. Only in the railway industry until 2030 is expected to decommission more than 800 worn-out passenger cars. According to the Union of Industrial Investors of Kazakhstan, about 76% of agricultural machinery needs renewal.
The head of the Government emphasised that in order to achieve the goals set by the President on diversification of the economy, it is necessary to actively use the potential of domestic machine building and introduce new technologies.
Head of State stresses that it is industrialisation that should be the main driver of economic diversification. Accelerated development of the manufacturing sector, and first of all machine building, should be the locomotive in ensuring economic self-sufficiency of Kazakhstan. The state actively supports domestic manufacturers. We are facing important tasks to create a production cycle with a high share of localisation. In addition, in order to improve the efficiency of enterprises, it is necessary to carry out timely modernisation of production," Olzhas Bektenov stressed.
The need to introduce digital technologies at enterprises in accordance with global trends of robotisation and automation of production cycles was noted.
Today in the automotive industry is working on the formation of cluster production. This approach stimulates the development of related industries and opens up new opportunities and prospects for the entire sector.
About 50 enterprises operate in the oil and gas machine building industry. The volume of production reaches $160 million, while the volume of imports exceeds $1.6 billion. Prime Minister drew attention to the tenfold difference and the need to reduce the gap. The International Centre for Oil and Gas Machine Building has been established to assist in the creation of new domestic production facilities. Projects on localisation of products of such international companies as Honeywell, PetrolValves, Wika have already been successfully implemented. The Head of the Government noted the need to expand the powers of the Centre to guarantee the conclusion of long-term contracts of international operators with Kazakhstani enterprises.
Head of the Government instructed the Ministries of Industry, Finance, National Economy and Holding "Baiterek" to provide additional funding for projects in mechanical engineering within the framework of already approved financial and economic feasibility studies. Olzhas Bektenov emphasised that machine-building enterprises should be provided with loans at a preferential rate to renew fixed assets and launch production of new types of goods.
Also, the Ministry of Industry should keep constant monitoring of the implementation of projects in the automotive industry and promptly resolve emerging issues, to expand exports.
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