Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

Output of industries of Economy of Simple Things for three years increased from 8.9 trillion tenge to 10.1 trillion tenge

Tuesday, 15 December 2020, 11:41:25

At the government session chaired by Prime Minister Askar Mamin during the discussion of the progress of implementation of the Economy of Simple Things program and increasing the domestic content, Minister of National Economy Ruslan Dalenov, First Vice Minister of Finance Berik Sholpankulov and Minister of Industry and Infrastructure Development Beibut Atamkulov made reports.

Over the past three years, there has been a significant increase in the production of finished, processed products. Thus, the volume of output in the industries of the Economy of Simple Things increased from 8.9 trillion tenge in 2018 to 10.1 trillion tenge in 2019. Growth continued this year. For 10 months, the index of physical volume amounted to 104%. The output of finished, processed products is growing faster.

“Due to the growth in the output of finished, processed goods, the share of imports is decreasing. The share of production of Kazakhstani goods in consumption is growing. So, in 2020, the share of domestic production increased by 2.5 percentage points. The production of food products, building materials, light industry products, furniture, machinery and equipment has grown. Over the past 2 years, for a number of types of products, the growth has reached double-digit indicators, and for certain types — by 1.5-2 times. This year, the rate of growth of production continued,” Dalenov stressed.

The implementation of the Economy of Simple Things program is accompanied by the growth of finished and processed products. A number of measures have been taken this year to improve the Economy of Simple Things program.

First. Collateral security. The size of the provided state guarantee has been increased, the terms for issuing guarantees have been reduced by 2 times, and a guarantee has been provided for projects of agricultural production.

Second. The total amount of lending was increased to 1 trillion tenge with the extension of the program until the end of 2021. To increase lending, the limits have been increased for each second tier bank.

Third. In order to increase lending, the types of economic activities were expanded, as well as financing of processing industries through the Development Bank of Kazakhstan JSC was increased. Within the framework of the Economy of Simple Things JSC Damu Fund subsidized 509 projects.

“By the number of projects, the main share falls on the areas of food production, building materials, metal products, plastics, furniture and clothing. The loan portfolio of subsidized projects on the Economy of Simple Things through Damu Fund is 338.6 billion tenge. The manufacturing industry accounts for the bulk of the loan portfolio. The monitoring of enterprises covered by the support for the Economy of Simple Things shows a positive trend. This year, such enterprises managed not only to preserve, but also to increase their incomes and, accordingly, the amount of taxes paid,” stressed the minister of national economy.

This year, the volume of financial support for all lending programs has been significantly increased. So, the amount of the supported loan portfolio reached 2 trillion tenge and more than 34 thousand projects were covered.

Overall, the results show that lending programs stimulate the production of domestic finished goods and have a positive macroeconomic effect.

Also, First Vice Minister of Finance Berik Sholpankulov made a presentation. According to him, the Ministry of Finance, on an ongoing basis, together with interested government agencies and NCE Atameken, is working to support local content.

In order to support domestic producers, the following measures have been taken.

First. Two government decrees were adopted to establish exemptions from the national regime:

1) cars, transformers and cables;

2) goods of light industry, furniture and cement.

Second. The specified items are included in the List of goods that are purchased only by means of a tender with a preliminary qualification selection (PQS). The main criterion for passing the PQS is the presence of an Industrial certificate.

Third. The public procurement law establishes the obligation of customers to indicate national standards in technical specifications.

Fourth. Model agreements on state purchases of works in the construction sector have been approved, providing for the use of building materials included in the Register of domestic producers.

“As part of the further development of local content, the following amendments are being worked out with the draft law on public procurement in the Parliament. First, the use of guaranteed purchase of goods, off-take contracts in government procurement. Second, the introduction of the Electronic catalog of goods using a unified codification for all types of regulated purchases, with reference to national standards, Industrial certificates and ST-KZ certificates. Third, the transition to full centralization of public procurement, which will allow to centrally regulate issues of increasing local content,’’ said Berik Sholpankulov.

At the same time, it should be noted that the most effective mechanism for supporting domestic producers from the listed measures is the establishment of exemptions from the national regime, therefore it is proposed to the relevant ministries to more actively use this tool.

According to the Minister of Industry and Infrastructure Development Beibut Atamkulov, today 994 subsoil users are registered in the country. At the end of 2019, the volume of purchases by subsoil users amounted to 7.7 trillion tenge. The share of local content is 45%.

“For 9 months of this year, the indicator excluding solid minerals amounted to 3.8 trillion tenge. The share of local content was 46.6%. From Jan. 1, 2021, under the terms of Kazakhstan's accession to the WTO, a phased cancellation of preferences for enterprises is envisaged. In the field of subsoil use, requirements for local content in goods are excluded,” Atamkulov said.

At the same time, for works and services, the share of local content in subsoil use contracts is set at no more than 50%.

In order to further develop the domestic market, taking into account the obligations to the WTO, the development of domestic production continues:

  • by the end of 2020, a special procedure for the acquisition of goods, works and services is in force in public procurement, where about 3400 domestic enterprises are accredited;
  • On Nov. 30, 2020, the Ministries of Industry and Infrastructure Development, Energy and major oil and gas operators signed an Agreement of Intent to create an International Center for the Development of Oil and Gas Engineering;
  • work is underway to expand the list of names subject to withdrawal from the national regime;
  • in 2021, a mechanism for concluding tripartite agreements to stimulate entrepreneurship in the Republic of Kazakhstan is introduced with the participation of state bodies, Atameken and subsoil users.

Within the framework of the introduced tripartite Agreements on stimulating entrepreneurship between authorized bodies (Ministry of Industry, Ministry of Energy) NCE Atameken and subsoil users on a voluntary basis.

The agreement will contain obligations on local content in goods, upon fulfillment of which subsoil users will be able to purchase goods without applying the rules of the regulated procurement procedure.

This measure will shorten the time for purchasing goods, as well as eliminate restrictions when choosing a supplier.

For the implementation of these proposals within the framework of the draft law on public procurement, appropriate amendments are made to the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use". The measures taken will allow in the future to conclude agreements with subsoil users to stimulate domestic production. Also, currently, within the framework of the draft Law of the Republic of Kazakhstan "On Industrial Policy", new additional measures to support domestic producers are being developed.

According to Deputy Prime Minister Roman Sklyar, the Project Office under the Government has been systematically monitoring the Economy of Simple Things program for 1.5 years. Taking into account the investment direction of the program, 2,254 projects provide for the renewal and expansion of existing production facilities, 332 projects — the creation of new production facilities.

“All projects are aimed primarily at import substitution of consumer goods and ensuring food security. The project office is monitoring the increase in the share of local content in purchases, restarting production enterprises in order to increase the consumption of domestic products. According to the data for 11 months of this year, most of the akimats have reached the KPI indicators approved for the current year,” Sklyar said.

Next year it is planned to increase the share of local content by 20%. The procurement work will be strengthened.


News feed
15 January 2021, 10:04
President Kassym-Jomart Tokayev signs Decree on Government of the Republic of Kazakhstan
12 January 2021, 20:12
American Valmont Industries to launch plant for production of advanced irrigation systems in Kazakhstan
12 January 2021, 14:16
Volume of oil and condensate production in Kazakhstan in 2020 amounted to 85.7 million tons — Nurlan Nogayev
12 January 2021, 13:13
Agro-industrial complex of Kazakhstan in 2020 showed positive dynamics of development
12 January 2021, 13:00
At the end of 2020, state budget revenues plan fulfilled by 102.7% — Yerulan Zhamaubayev
12 January 2021, 11:55
Production of vehicles had positive effect on growth of machine-building industry — Beibut Atamkulov
12 January 2021, 10:51
Income of National Fund at the end of 2020 remained positive — Erbolat Dossaev
12 January 2021, 10:43
In 2020, employment measures covered 1.4 million people, tax breaks were received by 700 thousand entrepreneurs — Ministry of National Economy
12 January 2021, 10:02
In 2020, real sector became the main factor in stability of Kazakhstan’s national economy
11 January 2021, 19:20
Government session to be held Jan. 12 in Ukimet Uyi
11 January 2021, 10:36
Prime Minister Askar Mamin voted in elections of deputies to Majilis from Assembly of the People of Kazakhstan
10 January 2021, 07:46
Prime Minister of Kazakhstan Askar Mamin voted in parliamentary elections
08 January 2021, 15:54
World Bank improved its estimates for economic dynamics of Kazakhstan in 2020
08 January 2021, 14:03
Kazakhstan is developing investment cooperation with the United States through AIFC platform
07 January 2021, 08:08
Prime Minister of Kazakhstan Askar Mamin congratulates Kazakhstanis on Christmas
01 January 2021, 00:10
Prime Minister Askar Mamin congratulates Kazakhstanis on New Year
30 December 2020, 19:54
Yeraly Tugzhanov gets acquainted with production of unique devices for treatment of lung diseases
30 December 2020, 13:47
Fifty schools for 170 thousand places to be built under public-private partnership in Kazakhstan PPP
29 December 2020, 11:49
By 2030, Kazakhstan plans to grow about 270 thousand tons of marketable fish per year – Magzum Mirzagaliyev
29 December 2020, 11:33
Kazakhstan developed draft new General Agreement for 2021-2023 on achievement of Decent Work concept
29 December 2020, 10:00
Government adopts Program for Development of Fishing Industry until 2030
29 December 2020, 09:38
Askar Mamin instructs to ensure effective control over observance of labor rights of citizens
28 December 2020, 22:40
Government session to be held Dec. 29 in Ukimet Uyi
28 December 2020, 14:16
Alikhan Smailov participates in meeting of Council of Eurasian Economic Commission
24 December 2020, 17:37
Prime Minister Askar Mamin chairs meeting of Council on Transition to Green Economy under President of Kazakhstan
24 December 2020, 17:13
Askar Mamin chairs meeting of State Commission for Control over Construction of Nur-Sultan
24 December 2020, 11:31
Yerzhan Kazanbayev appointed vice minister of trade and integration of the Republic of Kazakhstan
24 December 2020, 11:29
Azamat Askaruly relieved as vice minister of trade and integration
23 December 2020, 12:16
Expansion of Makinsk poultry farm to improve food security in Kazakhstan — Askar Mamin
22 December 2020, 18:35
Government considers progress in implementation of Nation's Plan "100 Concrete Steps''
22 December 2020, 18:21
Minister of Defense speaks on military equipment of Armed Forces and service during emergency
22 December 2020, 11:48
Introduction of water-saving irrigation technologies to reduce water consumption and increase yields – Saparkhan Omarov
22 December 2020, 11:16
Ministry of Justice of Kazakhstan: Government’s plan of legislative work for 2020 fully implemented
22 December 2020, 10:21
192 billion tenge to be allocated for digitalization of trunk canals within 5 years — Magzum Mirzagaliyev
22 December 2020, 10:00
Government considers Plan of Legislative Work for 2021
22 December 2020, 09:50
Government considers issues of using water resources
21 December 2020, 16:17
Government session to be held Dec. 22 in Ukimet Uyi
21 December 2020, 13:17
Askar Mamin launches production of Yutong buses in Saran
21 December 2020, 11:09
Production of Sputnik V vaccine begins in Kazakhstan
20 December 2020, 16:38
From Dec. 25, 2020 to Jan. 5, 2021, restrictive measures to be strengthened in Kazakhstan
20 December 2020, 11:47
Single platform for protection of consumer rights to be launched in Kazakhstan — Ministry of Trade and Integration
19 December 2020, 14:32
Kazakhstan starts vaccination of three thousand volunteers with domestic QazCovid-in vaccine
16 December 2020, 10:48
Prime Minister Askar Mamin congratulates Kazakhstanis on Independence Day
15 December 2020, 19:32
How is heating season carried out and what measures are taken to ensure fire safety — Ministry of Emergency Situations
15 December 2020, 18:58
In 2020, 1,666 new projects implemented under Economy of Simple Things program — Ablay Myrzakhmetov
15 December 2020, 11:41
Output of industries of Economy of Simple Things for three years increased from 8.9 trillion tenge to 10.1 trillion tenge
15 December 2020, 09:53
Economy of Simple Things program proved its effectiveness — Askar Mamin
14 December 2020, 17:20
Government session to be held Dec. 15 in Ukimet Uyi
14 December 2020, 13:40
Prime Minister Askar Mamin presents state awards on the eve of Independence Day
12 December 2020, 13:06
Prime Minister Askar Mamin participates in opening of modular construction plant in Nur-Sultan
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.