15 September, 2018

Bakytzhan Sagintayev considers business development prospects with entrepreneurs of Pavlodar region

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Within the framework of the working trip to Pavlodar region, the Prime Minister Bakytzhan Sagintayev got acquainted with the progress of execution of the President's instructions on large-scale improvement and expansion of the business environment.

At the meeting with members of the Regional Council of the Atameken Chamber of Entrepreneurs, issues of business development in the region, attraction of investments and development of export orientation of domestic products and services were discussed.

Deputy Chairman of Atameken NCE Eldar Zhumagaziyev reported on the development of regional business. Information was provided on the development of mass entrepreneurship and support of export-oriented producers in the region, as well as on the available reserves of the region for business development, in particular, prospects for import substitution.

The Chairman O. Crook made a speech from the Regional Council of Atameken NCE, he dwelled on the issues of improving the regulation of trade relations.

Entrepreneurs raised topical issues and proposed measures to further reduce administrative barriers to doing business in the region. General Director of Railways Systems KZ LLP A. Khachaturyan told about the issues of improving the system of payment for services and goods. The proposal to improve the tax regime in the territory of special economic zones was made by Chairman of the Board of Forwoll Group V. Lituev. Founder of JSC Kazenergocabel V. Bobrov spoke about the expansion of measures to support industrial enterprises. Director of Galitskoe LLP agricultural enterprise A. Kasitsyn raised questions of veterinary safety. Technical Director of BNKA Energy LLP Z. Aldebergenov raised the topic of attracting foreign investments in the construction of energy infrastructure.

Head of the Office of the European Bank for Reconstruction and Development A. Preimanis in his speech noted that the development of SMEs is critical for improving the investment climate. Therefore, special attention should be paid to the development of skills and the introduction of digitalization in SMEs.

"Today the EBRD works with small and medium-sized companies in the Pavlodar region. Development of skills through the Damu Fund, the board of foreign investors should remain key. Because when we talk about import substitution, then, of course, subsidizing is important. But all the same it is necessary to ask the question of how much the quality of what we produce corresponds to foreign requirements. Here it is just important to continue the existing policy, attracting foreign investors," Preimanis said.

Deputy Prime Minister Askar Zhumagaliyev made a comment on the issues of digitalization development in the SME sphere, as well as on its impact on increasing labor productivity.

Recall, in the Address "Third Modernization of Kazakhstan: Global Competitiveness," the Head of State stressed that one of the strategic goals is to ensure by 2050 at least 50% contribution of small and medium-sized businesses in the country's GDP. To solve this problem, the Program for Productive Employment and the Development of Mass Entrepreneurship is being implemented. The geography of microcrediting has been expanded, tools for supporting mass entrepreneurship have been improved. The total portfolio of microcredit in the cities, taking into account the funds of the previous year, is 24.3 billion tenge. Of them, 2017 funds are 11.9 billion tenge, and 2018 funds — 12.4 billion tenge, including 6.1 billion tenge in addition allocated within the Five Social Initiatives of the President.

In addition, the Government jointly with the NCE has taken a number of measures to reduce all types of costs for business. Work is being done to reduce the state's share in the economy to 15% in GDP, to the level of the OECD countries. According to the results of the first half of 2018, out of 887 objects of the Comprehensive Plan, 502 objects were put up for sale, of which 421 were sold for a total of 216 billion tenge. At the stage of reorganization and liquidation there are 266 facilities, the implementation of the Comprehensive Privatization Plan, taking into account the reorganized and liquidated objects, is 77.4%. At the same time, work is underway to expand public-private partnership.

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