Kazakhstan • 15 July, 2020

Production in manufacturing industry grew by 4.8%

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At the government session chaired by Prime Minister Askar Mamin, the Minister of Industry and Infrastructure Development Beibut Atamkulov reported on the execution of the Head of State’s instructions given at an extended session on July 10, 2020.

According to Atamkulov, in the first half of 2020, production in the manufacturing industry grew by 4.8%.

“Until the end of the year, we plan to ensure the fulfillment of all planned targets for manufacturing industries. In the manufacturing industries, we plan to launch over 65 projects worth 1.7 trillion tenge. This will reduce imports in the industry by 20% by 2025,” the minister said.

Within the framework of the state programs Nurly Zhol, Nurly Zher and the Employment Roadmap, 6,202 infrastructure projects are implemented, with a total value of 3.7 billion tenge, in which the share of Kazakhstani content is 90%.

Also, 33 projects for the production of building materials are being implemented, thus it is planned to reduce the share of imports by 15% and increase the use of building materials of domestic production in housing construction to 90%.

The ministry is taking targeted measures to increase the share of Kazakhstani content in construction:

First. A legal framework has been created for the mandatory use of domestic materials in projects funded from budgetary funds.

Second. A Portal has been developed where summary resource sheets of all projects that have passed the examination are posted.

Third. The Rules for public procurement have been amended by standard contracts in the field of construction, which require the purchase of materials in accordance with the Register of Industrial Property.

Fourth. Legislative measures are being worked out to strengthen responsibility for non-compliance with the requirements of domestic producers.

One of the instruments for developing the manufacturing industry and attracting investments is the SEZ.

13 SEZs have been created and are functioning in the country. In general, the infrastructure is fully completed at 6 free economic zones. The development of the territory of SEZ is 44%. 169 projects have been launched in the territories of SEZ. Created more than 23.6 thousand permanent jobs. About 180 billion tenge was returned to the budget in the form of taxes.

“In accordance with the instructions of the Head of State, in order to increase the efficiency of the SEZ, we are improving the legislation, reviewing development strategies, expanding the territory of the SEZ, including new types of activities,” Atamkulov said.

To date, 156 projects are underway for a total of 4.2 trillion tenge, with the creation of an additional 8.2 thousand permanent jobs.

“All instructions of the Head of State are under special control of the ministry and will be executed in a timely manner,” Atamkulov summarized.

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