President of Kazakhstan Kassym-Jomart Tokayev has received today Akhmetzhan Yessimov, Chief Executive Officer of the Sovereign Wealth Fund «Samruk-Kazyna» JSC, the Akorda press service reports.
Kassym-Jomart Tokayev heard a report on the results of the group of companies of the Sovereign Wealth Fund «Samruk-Kazyna» JSC for 9 months of 2020.
According to Akhmetzhan Yessimov, net income in the reporting period was 2.6 times higher than the plan and amounted to 436 billion tenge, while the plan was 167 billion tenge. Payments of dividends to the shareholder Kazakhstan’s Government in 2020 amounted to 120 billion tenge, which is 10 times more than in 2017. He also noted that stable functioning of all enterprises in the energy, oil and gas, uranium, telecommunications, postal and other industries has been ensured. The production staff was saved without mass reduction, and a timely wages payment to employees was secured.
Samruk-Kazyna’s CEO informed President Tokayev that the Fund continues to work on fulfilling his instructions to support the Kazakhstan’s economy through the procurement system. The share of local content in the Fund's purchases for the first 9 months of 2020 amounted 66 %. Purchases in the amount of 819 billion tenge were transferred to the competitive environment. 17,000 business entities received access to the Fund's purchases. Since the beginning of 2020, the group of companies has signed contracts with domestic businesses for 2.4 trillion tenge, placed 12 thousand orders at domestic enterprises that employ 280 thousand people. The expected tax revenues to the state budget will amount to 170 billion tenge.
The President was also presented with the concept of transforming the Fund into an investment holding. According to Akhmetzhan Yessimov, this will allow to diversify the portfolio by geography and industry of assets, increase the return on investment and increase budget revenues by increasing dividends.
The Head of State was informed that in accordance with the President’s State of the Nation Address, the asset privatization program will continue. Moreover, the Fund will retain control of 51% or more in large and strategic companies in order to ensure a balance between the state and private interests.
Source: Kazinform News Agency
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