Today Ukimet Uyi hosted an extended Government meeting with the participation of the Head of State Nursultan Nazarbayev. Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev delivered a report on the results of work for 2017 and tasks for 2018.

Esteemed Nursultan Abishevich!

For the last 10 years Kazakhstan has been developing under the pressure of external shocks and global turbulence. These are difficult times for rapid and dramatic changes. Nevertheless, our country has avoided dramatic scenarios only thanks to your timely decisions.

The response to the global financial crisis of 2007-2009 was the program for forced innovative industrialization, the second five-year plan of which we are now implementing.

Amid the external shocks of 2014-2015 you initiated the large-scale plan of infrastructural development – Nurly Zhol. In order to strengthen the state and implement the "Strategy-2050" in the global reality, you, esteemed Nursultan Abishevich, put forward five institutional reforms and the Plan of the Nation "100 concrete steps" for their implementation.

At a new stage in the development of the world economy and global changes in early 2017, you announced the course of the Third Modernization of Kazakhstan, setting clear goals for renewal in the political, economic and spiritual spheres.

Of fundamental importance is your program article "Rukhani Zhanghyru", as the formation of new generations of Kazakhstanis with modern thinking is the decisive factor of the country's competitiveness in the 21st century. Successful implementation of your new Address on the Fourth Industrial Revolution will place Kazakhstan among developed countries, solving the most complex issues of the world's advanced agenda.

Esteemed Nursultan Abishevich!

You always foresaw the challenges ahead. You have been in advance giving the Government and Akims strategic policies and instructions. Thanks to your formula "crisis as a chance," Kazakhstan always mobilized in difficult times and came out of trials strong, with new plans and confidently looking ahead.

It was the implementation of your decisions that made it possible to achieve concrete results last year.

The main of them are:

The economy has reached a stable development trajectory, which is confirmed by international rating agencies, which give the country a stable forecast.

GDP growth is 4%. 60% of growth was achieved due to non-primary sectors. This is a fundamental moment, because it shows the stability of the economy and the change in its structure.

Foreign trade turnover increased 25% to 69.5 billion USD. Investments in fixed assets increased 5.5%, including private investments - by 6.9%.

The macroeconomic situation improved. Inflation was reduced to 7.1%. The sustainability of public finances is maintained at a safe level. The national debt does not exceed 26% of GDP. Incomes to the National Budget grew 26.3%.

All social obligations of the state have been fully implemented. On your instructions, basic social benefits have been increased. The amount of labor pensions has been raised to 20%, lump-sum birth allowances - by 27%. The unemployment rate is 4.9%.

This year’s significant international event was the exhibition “EXPO-2017 - Energy of the Future”, which was visited by almost 4 million people. The exhibition had a great multiplier effect on the development of small and medium business, trade, promotion of green technologies.

Thus, the Plan of the Nation and all the programs worked. I will discuss in more detail the most significant of their impacts on the economy.

The Plan of the Nation "100 concrete steps” is given special attention by the Government. Over three years of its implementation, 74 laws and more than 500 normative legal acts have been adopted, which all meet the tasks of the new stage of state construction. Since the execution of the Plan, 55 steps have been completed in total.

The first reform is the formation of a professional state machine. The transition to a career model of civil service gave equal opportunities to employees in advancing on the career ladder. Comprehensive certification of civil servants was carried out. A new system of labor remuneration based on work results is being tested.

The second reform is to ensure the rule of law. We have transitioned from a five-tiered justice system to a three-tier system, which ensures the timeliness of the protection of the rights of citizens and business.

The degree of requirements for the judiciary has been increased, and their accountability has been strengthened. We have created legal proceedings on investment disputes, the International Arbitration Center of the AIFC.

A local police service and community councils have been set up to look into complaints from citizens about police actions.

The third reform is industrialization and economic growth, based on diversification. The antimonopoly legislation is harmonized with the OECD standards. In the construction industry - the process of obtaining permits has been reduced, Eurocodes are introduced, obsolete SNIPs have been abolished. The new Code "On Subsoil and Subsoil Use" has been adopted. The implementation of the BAKAD project has begun. The Astana International Financial Center was established.

A new Labor Code has been adopted. Targeted social assistance has been improved. A single benefit for low-income families has been introduced. New Tax and Customs Codes entered into force. The tax reform will increase revenues to the budget in 2018 by 90 billion tenge, and in the three-year budget - by 300 billion tenge.

The fourth reform is identity and unity. The Assembly of People of Kazakhstan has been institutionally strengthened. New means of upward social mobility for young people have been created. Work has been done to promote the idea of ​​the “Universal Labor Society”.

The fifth reform is the formation of an accountable state. An institution of public councils and annual reports to the public has been created. A new model for monitoring and auditing the use of budget funds was introduced.

The law on the development of local self-government is being implemented. The transfer of functions of state bodies to a competitive environment and self-regulating organizations has begun. An "open government" was introduced. The Government for Citizens Corporation provided 64 million services.

All these steps are of crucial importance for the creation of a new economic model and its sustainable development in the long term.

The Industrial-Innovative Development State Program is the main tool for diversifying and improving the competitiveness of industry.

Since 2010, 1148 new projects have been commissioned for 6 trillion tenge. 107 thousand permanent jobs were created.

There was a transition to upstream manufacturing. The output of new, previously not produced high-tech goods for export, including locomotives, electric locomotives, passenger cars, cars, mining and oil and gas equipment, has begun.

Significant growth has been achieved in pharmaceutics, automotive, electrical engineering, chemical industry, food production.

As a result, the contribution of the manufacturing sector to industry increased from 31% in 2010 to 40% in 2017. Labor productivity has increased. Each employee is now producing products in the average amount of 10 thousand USD more.

In 2017, the growth rate of the manufacturing industry reached its five-year maximum of 5.1%. 120 projects for 1.5 trillion tenge of investments were commissioned and 10 thousand permanent jobs were created. We plan to maintain the same pace this year also.

Exports of non-primary goods grew 22%. The sales geography covered 122 countries. Kazakhstan today exports more than 800 products of the manufacturing sector.

The Government has ramped up major efforts to implement the Digital Kazakhstan program you initiated. By 2022 all populated areas of the country will be provided with broadband access to the Internet. A plan has been developed to train and prepare personnel for the digital economy and to enhance digital literacy among the population.

Measures have been developed for the technological re-equipment of basic industries and the introduction of elements of Industry 4.0 at the first 500 industrial enterprises. The creation of model digital factories based on the flagships of our industry - ERG, Kazzinc, ArcelorMittal, Kazakhmys, Kazatomprom - has been started.

Legislative norms have been prepared for the development of e-commerce, the venture finance industry, and the IT industry as a whole. The concept for the development of "smart cities" was approved. By the end of the year pilot projects will be implemented in each region.

Attraction of investments. Due to your personal involvement, during the years of Independence, about 300 billion USD of direct foreign investments were attracted to the country and Kazakhstan is the leader in the region in this regard.

Today, the structure of investment inflows has changed. 25% of foreign investment goes to the manufacturing industry. To non-primary sectors - about 50%. A new wave of foreign investment is entering the country.

Expansion of the Tengiz project with Chevron's 37 billion USD investments has no analogues in the world as of today.

The Government is monitoring the implementation of your agreements with China, Russia, the United States, Japan, South Korea, Iran, Turkey and other countries, to develop production capacity for a total of about 50 billion USD.

The Nurly Zhol State Program. Thanks to the large-scale construction of transport, industrial and social infrastructure, the Program annually creates at least 100 000 jobs.

Firstly, a modern network of highways has been created.

In 2015-2017, 2000 km of motorways connecting Astana with all regions of the country by ray principle were built. In 2017, construction and reconstruction were carried out on 4000 km of roads. 600 km are open for traffic.

In 2018, more than 500 km of roads will be completed. In accordance with your new Address, special attention will be paid to the development of local roads. The volume of their financing will be brought up to 150 billion tenge, which will improve the quality of life in cities and villages.

Secondly, the railway and aviation infrastructure has been modernized and expanded. In three years, 1376 km of railways have been built, which increased the carrying capacity and speed of transport of goods to new markets.

Reconstruction of runways of the majority of airports and passenger terminals of the country was carried out.  A new railway station and an airport International terminal were built in Astana.

Thirdly, the transit potential of the country as a transport and logistics hub in Central Eurasia is being developed. The construction of the Kazakhstan section of the International Corridor “Western Europe - Western China” has been fully completed. This is 2857 km.

The highway covers more than 240 settlements in 5 regions with a total population of about 5.5 million people, and already shows its impact on economic development. Thus, the freight turnover between the regions increased 2.5 times, transit freight traffic - 3 times. The average annual effect from the project for today is about 180 billion tenge and will grow every year.

New logistics hubs have been built in the East and West of the country, as well as a joint Kazakh-Chinese logistics terminal in the sea port of Lianyungang.

The work on filling the Transcaspian international transport route with cargo flows started, taking into account the completion of the Kars-Akhalkalaki railway section between Turkey and Georgia. As a result, the volume of transit cargo increased 20% to 18 million tonnes. Incomes from transit traffic amounted to 353 billion tenge.

The task is to bring the profit from all types of transit to 5 billion USD and transit up to 2 million containers from China to Europe by 2020.

The Nurly Zher Program. From the first days of Independence, you, Nursultan Abishevich, pay special attention to providing Kazakhstan citizens with high-quality and affordable housing.

During these years, about 130 million m2 of housing were built, providing a million two hundred thousand families with homes. In 2017, a record 11.2 million m2 of housing were commissioned. More than 100 thousand families received new housing.

It is encouraging that now housing construction is dominated by non-state funds - 84%. For every 1 budgetary tenge, 5.4 tenge of private investments were attracted.

Large-scale housing construction has had a multiplicative impact on the construction industry. The volume of production of construction materials amounted to more than 440 billion tenge.

Agribusiness

The effectiveness of state support measures has been increased. 65 types of subsidies have been revised and the coverage of the entities of the agro-industrial complex has been expanded. The volume of AIC support in 2017 increased 18% and amounted to 260 billion tenge.

Agro-processing Roadmaps in the context of regions have been developed. Investments in fixed assets increased 30%.

In 2017, Kazakhstan fully obtained the status of a zone free from foot and mouth disease, which opens up new markets to our livestock products.

Thanks to your personal arrangements with the leaders of China, Uzbekistan, UAE, Saudi Arabia, Iran, the markets of these countries were opened for the export of Kazakhstan products. For example, exports to China alone grew 30%. In total, the export of agricultural products and products of its processing grew 10%.

As a result of the measures taken, the growth of gross agricultural output was 2.9%, of food products - more than 4%.

Productive Employment and Entrepreneurship Development Program. Over the first year, it saw participation of more than 570 thousand people, of which 315 thousand were given for permanent jobs, including new jobs for 136 thousand people.

Your order for the introduction of free vocational education for young people has been fulfilled. An additional 21 000 young people began education.

To support private business, decisive deregulation has been carried out, and a new Business Code has been adopted. Permits have been reduced 3 times, inspections – 4 times. Support was provided to 192 000 business entities for a total of 286 billion tenge. Conditions for the development of PPPs have been improved. A total of 160 contracts were concluded for 146 billion tenge.

The measures taken allowed increasing the output of small and medium business by 29%, and the share of SMEs in the economy reached almost 27%.

Esteemed Yelbasy!

Your instructions in the Rukhani Zhanghyru program provide important ideological support for economic modernization.

 A new educational policy is being developed for youth to upgrade the quality of future Kazakhstani people.

The Action Plan for gradual transition of the state language to the Latin script till 2025 was prepared.

The list of 800 new textbooks was developed within the framework of the project “New Humanitarian Education”. 17 of the world's leading humanitarian textbooks have been translated into Kazakh.

More than 700 measures were implemented in the country within the framework of the project "Tughan Zher", and more than 300 are being implemented. Patrons have provided more than 51 billion tenge of sponsorships.

183 sites of national significance and 520 sites of local importance ​​were identified within the framework of the project "Sacred Places of Kazakhstan". We are shooting 4 films dubbed in 5 languages ​​of the United Nations.

Winners of the project "100 New Faces of Kazakhstan" were defined. You met them in December last year.

The best achievements of our national culture during the years of Independence were selected to be showcased abroad.

Dear Nursultan Abishevich!

These are the main results of the Government's work related to the implementation of programs.

Today, the Government has a specific action plan for 2018, which is derived from the tasks outlined in your new Address and strategic documents.

I would like to assure you that the Government will make every effort to fulfill the goals set out to meet your expectations.

Thank you for your attention!

www.primeminister.kz

Published: 09 February 2018

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