Opening the meeting on the issues of realization of the Kazakhstan-2050 Strategy, the President pointed out that in conditions of instability in world markets the country’s economic growth of 6 percent is being observed.
In this regard, the President of Kazakhstan charged to allocate KZT 1 trillion in 2014 and 2015 to provide the economy with credit resources, identifying ways of its expenditure.
“I also instruct the Samruk-Kazyna National Welfare Fund and the companies included in its structure to provide a 10 per cent increase of wages of their industrial employees starting from April 1, 2014. This applies only to production employees – workers and technical staff but not to office personnel,” the President highlighted.
In addition, President Nursultan Nazarbayev called large companies of mining and metallurgy sectors, such as “Kazakhmys, “ArcelorMittalTemirtau”, “Kazzinc”, “ENRC”, oil and gas companies and enterprises in other spheres to consider raising wages by 10 per cent for their employees who are involved in actual production as well.
The head of state stressed that these measures should be taken together with the international financial institutions that would provide their transparency.
Nursultan Nazarbayev pointed out that the Government should drastically revise licensing system and simplify administrative procedures.
Concerning the issue of improvement of the financial sector, the President of Kazakhstan laid an emphasis on the urgent problem of non-performing credits in the banking system.
“I charge the National Bank and the Government to make suggestions on redemption of troubled credits from the banks until March 1, 2014. I set a task before the National Bank that the share of non-performing credits in the second tier banks has to be reduced to 15 percent by January 1, 2015 and 10 percent by January 1, 2016. The banks should take all necessary measures to fulfill this task. I would like to stress that the commitment of the banks to reduce the rate of non-performing credits should be one of the main criteria of being provided with financial resources from the National Bank. The redemption of non-performing credits by the state will depend on this,” Nursultan Nazarbayev said.
The head of state charged the National Bank to put forward a proposal until March 15, 2014 on transition to the inflation targeting regime in order to reduce the inflation rate by 3-4 percent in a mid-term period.
Nursultan Nazarbayev stressed the need to take a number of drastic measures on recovery of the equity market.
“The People’s IPO Programme has not been properly continued. The process of creation of the Integrated Accumulative Pension Fund has been unreasonably delayed. I charge the Government and the National Bank to give a clear vision on the issues of development of the pension system and the equity market within the framework of elaborating a programme of the financial sector development until 2030 and the Concept for Development of the Pension System. The instruction should be fulfilled by June 1, 2014,” the head of state said.
The President of Kazakhstan touched upon an issue of reduction of state participation in economy.
“In 2012, the People’s IPO Programme was launched. Five more companies were planned to be introduced to the market. These are “Kegoc”, “Air Astana”, “KazTransGas”, “Samruk-Energy” and “Kazmortranflot”. This work should be continued. I charge the Samruk-Kazyna Fund together with the Government to introduce corresponding suggestions within a month,” Nursultan Nazarbayev said.
The head of state reminded that in his Address, he charged the Government together with the Samruk-Kazyna Fund to elaborate a complex programme of privatisation for 2014-2016.
The President of Kazakhstan stressed the importance of improvement of the investment climate.
“Concerning the issues of the investment climate, we need to introduce clear, transparent and predictable rules of the game. What do investors want? They are interested in a number of basic factors, such as stability of contracts and the legislation, stability in the society, infrastructure, energy resources, transport, work force, and a comfortable visa regime. We have all of them. But it is not working at all and if it is, not in favour of investors,” Nursultan Nazarbayev said.
The head of state stressed the need to create all conditions for the diversification of investments to attract foreign capital into processing industry, service sector and agriculture.
The President of Kazakhstan pointed out that the procedures of attracting foreign work force need improvement. Also, a set of measures should be taken in order to improve customs administration.
Nursultan Nazarbayev charged the Government to explore until May 1, 2014 the issues of massive reduction of administrative procedures in the foreign trade. In particular, the traffic of any goods through the customs should not take more than 3 days.
The head of state charged to form a commission until May 1, 2014 and make concrete suggestions on introducing a new package of incentives for investors, where investment agreements should be the basis.
“It is necessary to provide stability of these agreements and contracts. Investments come where there are less costs and a high potential for work. We should create a transport and logistic system of the international standard. It needs a consolidation of all the national logistic resources and create alliances with partners under the management of “NC “Kazakhstan Temir Zholy” JSC,” the President of Kazakhstan said.
Nursultan Nazarbayev laid emphasis on a necessity of an active diversification of the economy that is the main goal for mid-term and long-term period in order to provide macroeconomic stability and sustainable growth.
The President of Kazakhstan charged the Government together with the Governors of the regions to focus on defining specialisation of the regions.
The head of state stressed that hydrocarbon resources and solid minerals were the strategic elements of our economy.
“That is why a programme of geological prospecting work should be realised. These issues should be regulated by a separate state body,” the President of Kazakhstan said.
Nursultan Nazarbayev noted that the technological policy in the oil and gas area should be considerably activated.
In the sphere of energy, the President of Kazakhstan stressed an importance of elaboration of a Concept of the fuel and energy complex development until 2030.
“In the first quarter of the current year, you should consider and make suggestions on construction and placement of the Atomic Power Station. At the same time, it is necessary to lay an emphasis on the increase of the role of the Kazakh science in utilizing renewable natural resources such as water, land and biological resources,” Nursultan Nazarbayev said.
Nursultan Nazarbayev charged to make suggestions within a month on the establishment of an international research university in the sphere of agriculture on the basis of the Kazakh Agro Technical University in Astana.
Summing up the results of the meeting, the President of Kazakhstan emphasised the need to intensify the work of the Government in order to achieve these goals.
