The Prime Minister of Kazakhstan Alikhan Smailov held another meeting with representatives of medium-sized businesses, organized with the assistance of NCE Atameken. The event on June 1 was attended by entrepreneurs of Atyrau, Aktobe, West Kazakhstan, Mangystau and Kyzylorda regions.

The Head of Government said that over the last three years, more than 59 thousand business projects in these areas have been covered by state support measures. In particular, for 28 thousand projects subsidized rates for a total loan amount of 1.5 trillion tenge. Of them on the medium-sized businesses supported more than 2.5 thousand projects to 406 billion tenge. In addition, 12 thousand subjects were given preferential financing for 487 billion tenge, including 167 representatives of medium-sized businesses for 102 billion tenge.

"In terms of industries, support measures were aimed at manufacturing, transport, construction, agriculture, trade, as well as social projects in the areas of healthcare and education," Alikhan Smailov said.

During the meeting entrepreneurs raised actual issues of fishery development regarding equipment upgrade, infrastructure modernization, introduction of advanced standards and product export, import substitution in oil and gas engineering, oil service support, expansion of transport and logistics opportunities in the western regions, taxation and some other issues.

Thus, Vyacheslav Kondrashikhin, Operating Director of Edil-Oral.kz LLP, presented a new project on production of equipment for oil and gas industry for 3.9 billion tenge of investment and asked for assistance in terms of provision of state preferences.

Prime Minister noted that today in Kazakhstan there are a number of mechanisms for investors to receive support and preferences from the state. In particular, such benefits are provided for participants of special economic zones and within the framework of the agreement on investments.

"We have specially developed them for new projects. As for the machine building industry, we are currently preparing a separate comprehensive development plan, it will also include a number of support measures. We have already expanded the list of equipment and components, which machine-building companies can import with VAT exemption (offset method). Also under the Damu Fund it is planned to launch a separate sub-program "Оndiris" to subsidize the interest rate for implementation of investment projects," Alikhan Smailov said.

Another topical issue was related to dredging as part of construction of Sarzha multifunctional sea terminal. Prime Minister instructed the authorized government agencies to work out the issue promptly in order not to delay the implementation of the project.

The meeting also discussed measures to develop such a promising direction in agro-industrial complex for the western regions as camel breeding, increase the production of pharmaceutical products, expansion of access of domestic companies to the procurement of subsoil users and a number of other issues.

Heads of the central government agencies, national companies, regional Akimats gave their comments on all raised topics and took the problematic issues under control.

Summing up the discussion Prime Minister stressed that the Government will continue to create the most favorable conditions for the development and expansion of medium-sized businesses.

"Today there are only 517 medium-sized businesses in your regions. This suggests that the potential for the creation, development, expansion, as well as the impact of medium-sized businesses on the diversification of the economy and increasing economic growth has not been fully realized. We will actively support all initiatives of medium-sized businesses, promote their accelerated implementation," Alikhan Smailov said.

He added that regional akimats should increase the level of support on infrastructure, land allocation and other issues within their competence. Regional development institutions should also expand cooperation with medium-sized businesses.

"On the platform of each akimat, systematic meetings should be held to address the problems of entrepreneurs. Business should feel support at all levels of government," Alikhan Smailov concluded.

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