The Prime Minister of Kazakhstan Alikhan Smailov continued a series of meetings with representatives of medium-sized businesses to discuss topical issues and measures of state support. The meeting on May 26 was attended by entrepreneurs from Akmola, Kostanay, Pavlodar and North Kazakhstan regions.

Deputy Minister of Industry and Infrastructural Development Ilyas Ospanov said that there is a possibility to increase the production in the manufacturing industry by $46 billion through domestic reserves, while Kazakhstan has the potential to additionally supply the macro-regional market with products worth almost $300 billion.

Among the main areas where there is an opportunity to develop domestic production: oil and gas engineering, production of construction materials, food and fertilizers, steel products, goods of aluminum and copper industries, processing of iron ore, cotton fiber, wool, leather, etc.

As a direct measure of state stimulus, this year it is planned to finance manufacturing projects worth over 500 billion tenge, including through the Industrial Development Fund and the Development Bank of Kazakhstan.

Yerbol Karashukeyev, Minister of Agriculture, noted that at present the agro-industrial complex of the country has a positive development dynamics. In this case the state continues to work on expanding access to finance and opening up new markets for manufactured products.

So, in part of the reform of subsidies, taking into account the proposals of the business community, a compromise version was developed, which provides for pinpoint changes aimed at reducing corruption risks, but with the preservation of the main contours of the current system.

Besides, in order to increase the availability of subsidies to agricultural producers, "waiting lists" have been launched within the implementation of the Unified Information System, which guarantee the satisfaction of submitted applications on a first-come, first-served basis. In general, at least 425 billion tenge will be allocated for subsidizing agriculture this year.

Through Agrarian Credit Corporation JSC 140 billion tenge is allocated for spring field and harvest works this year, of which 70 billion are medium-term and will be returned next year until April.

With regard to crediting, the forward purchase programme will be continued via NC Prodkorporatsiya for more than 71 billion tenge and 20 billion tenge is allocated to increase the authorised capital of JSC KazAgroFinance for the purchase of agricultural and fodder harvesting equipment. However, in all regions will start implementation of the program of crediting investment projects of agro-industrial complex by experience of North-Kazakhstan region. This year it will allocate 100 billion tenge for construction of 65 dairy farms. It is planned to give credits at 2.5 per cent up to 10 years with the maximum sum of 5 billion tenge.

In terms of expanding markets for domestic livestock products, work is underway to include Kazakhstan enterprises in foreign exporters' registers. Today 3 282 enterprises have the right to supply their products abroad.

With regard to plant products, over the past two years, 901 Kazakhstan enterprises were included in the register of the General Administration of Customs of China.

The participants of the meeting discussed the issues of preferential financing, providing stability of subsidies, modernization and automation of production, connection to engineering infrastructure, availability of land resources, development of small industrial zones, increase of localization, export support, fight against unfair competition and a number of other issues.

Speakers included heads of companies Enbek, Greenhouse Technologies of Kazakhstan, CHN, Turkey PVL, Raduga, Asyl Farms, Adal Agro, Asyl Farms, TEHNOPARK KZ, and others.

The heads of the central state and local executive bodies gave detailed comments on the topics raised. In particular, during the meeting the ways to solve several problematic issues were identified, for the rest the Prime Minister instructed the authorized agencies to carry out the appropriate study.

Alikhan Smailov stressed that the government will actively support initiatives of medium-sized businesses to create and expand new production facilities. Among main priorities here are localization, introduction of new technologies, digital transformation of enterprises, creation of competitive products of middle and upper redistribution, development of modern infrastructure.

"For this purpose support is provided at all stages of the life cycle of production - from raw material base to promotion of finished products in domestic and foreign markets," Prime Minister said.

He added that this year 170 projects worth more than 1 trillion tenge are planned for industrialization and 300 projects worth 540 billion tenge for agro-industrial complex. In parallel, the list of tax and customs preferences, including for exporters of finished products. At the local level support is provided on the allocation of land, infrastructure and other issues within the competence of the Akimats.

Alikhan Smailov pointed out that an important direction is increasing the efficiency of state support measures.

"Businesses that receive state support should expand their production and ensure growth in the output of non-resource products. The priority should be given to the saturation of the domestic market. We must get the greatest economic effect from each project, which will contribute to the further diversification of the economy and the creation of permanent jobs," he said.

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