04 September 2025, 14:30
In his Address to the Nation “Fair Kazakhstan: Law and Order, Economic Growth, Public Optimism”, President Kassym-Jomart Tokayev outlined the main vector of the country’s development – building a strong and diversified economy, with powerful industrial potential as its foundation.
The Head of State set the task of moving away from a raw-material model towards the production of high value-added goods, which requires systemic investments in modernizing existing enterprises and creating new high-tech industries. In this regard, the Government is implementing a set of measures aimed at strengthening industrial sovereignty and increasing the competitiveness of domestic products.
For more details on the progress of the tasks set out in the Address and other instructions from the Head of State, please refer to the review on Primeminister.kz.
A key task defined by the President is the development of a strong and diversified economy. The results of the first 7 months of 2025 show positive dynamics in the industrial sector, the driver of national development. Industrial output grew by 6.9%. Growth was driven both by the mining industry (+8.5%) and, importantly for diversification, the manufacturing sector (+6.1%).
“As part of implementing the President’s instructions, the Government is conducting systemic work on diversification and strengthening the competitiveness of domestic production. Industrial development is aimed at increasing output, improving working conditions, launching new deep-processing industries, and creating permanent jobs through investments, including from major international companies,” noted Deputy Minister of Industry and Construction Olzhas Saparbekov noted.
The President highlighted positive results in the automotive industry and tasked to maintain this momentum by consistently raising localization levels to create a full-fledged automotive cluster. This sector is now the core of technological modernization, showing 14% growth. Output of motor vehicles rose by 18.6%, agricultural machinery by 6.4%, and other equipment accordingly. A tire plant launched in Saran serves as an example of successful diversification, allowing the city to be removed from the list of “monotowns.” This model will be replicated in other regions to create new growth points.
Other key projects include a plant in Saran producing TVs (up to 150,000 annually) and washing machines (200,000 annually), as well as planned launches of a multibrand passenger car plant in Almaty and a Kia plant in Kostanay.
Metallurgy also showed positive growth (+1.3%). At Qarmet steelworks, modernization launched by a domestic investor is boosting output of ferroalloys (+1.6%), pig iron (+6.5%), and steel (+3.4%).
The Government plans to significantly increase processing of base metals: copper (x2), aluminum (x1.5), lead (x2.3), and zinc (+11%). This supports industries producing medium- and high-value products such as wire rods, cable products, batteries, window profiles, fittings, and other goods. New projects include production of bimetallic radiators, industrial batteries, and brass goods.
Steel production capacity has increased from 5 to 7.5 million tons in the last five years. Five plants producing construction rebar, channels, I-beams, and angles have been launched. This year, new plants for straight-seam pipes and aluminum radiators (Karaganda region), aluminum profiles (Turkestan), aluminum products (Akmola), and cathode copper (Zhambyl) are being commissioned.
Growth in chemical industry reached 6%, driven by high-tech products: polypropylene (+46.2%), chromium oxide (+4.8%), and ammophos (+67.7%). Large projects in polypropylene and polyethylene production are already in operation, while projects in butadiene, carbamide, and terephthalic acid are being developed.
Building materials output rose by 4.7%, linked to infrastructure and housing projects. Light industry grew by 1.9%, mainly from textiles (+4.9%), though declines in clothing (-0.7%) and leather goods (-6%) signal areas requiring support.
Other industries showed strong growth: food production (+9.2%), oil refining (+8.5%), finished metal products (+14%), rubber and plastics (+4%), and furniture (+1.6%).
In total, 190 projects worth 1.5 trillion KZT are planned in 2025, creating 23,000 permanent jobs. Already, 75 projects have been launched.
One effective tool for supporting domestic producers is long-term contracts and offtake agreements to guarantee affordable raw materials. In 2025, 513 contracts worth over 147 billion KZT were signed in the mining and metallurgical sector – double last year’s figure.
Under the National Project on modernization of the energy and utilities sector, a new procurement system will ensure transparency and monitoring. Demand for goods until 2029 is expected to exceed 2 trillion KZT.
Special Economic Zones (16) and Industrial Zones (55) are key mechanisms to attract investment and develop infrastructure for new industries. Additionally, small industrial zones are being created to provide ready-made industrial sites for SMEs at preferential rates. Eight such zones are under construction, with plans for around 90 projects and over 3,000 jobs.
Geological Support and Expansion of the Mineral Resource Base
Effective and rational use of subsoil is the key to long-term economic stability. The Government is carrying out work to increase transparency, investment attractiveness, and efficiency of geological exploration.
A breakthrough step in this direction was the commissioning in 2025 of the Unified Subsoil Use Platform (USUP). This information system automates the processes of obtaining rights for exploration and production, including auctions, and ensures an unprecedented level of transparency. More than 66 thousand geological reports have already been posted on the platform, an interactive map has been developed, and 22 public services have been digitized.
The Program for the Management of the State Subsoil Fund included 73 new exploration areas consisting of 1,061 blocks with a total area of 2,652.5 sq. km, and 62 deposits to be put up for auction. During the reporting period, five new solid mineral deposits (Kok-Zhon, Altyn-Shoko, Samombet, Studenchesky, Takyr-Kaldzhir) were registered for the first time in the State Register. Thanks to this, a significant increase in resources was obtained: gold – 97.8 tons, silver – 11.9 tons, copper – 36.4 thousand tons and other products. For comparison, in 2024, 23 solid mineral deposits, 6 hydrocarbon deposits and 6 groundwater deposits were registered, with an increase in reserves of oil – 199 million tons, gas – 22 bcm and groundwater – 79.8 thousand m³/day, which indicates systematic and continuous work in this direction.
An inventory of technogenic mineral formations (TMF) was carried out, during which 1,630 objects with a volume of 53.6 billion tons were recorded. For reference, in total, the State Subsoil Fund includes 1,747 TMF objects with a total mass of 55 billion tons, of which 450 are located near settlements, which emphasizes the importance of their involvement in processing. To increase the investment attractiveness of geological exploration, in 2025 the budget allocated 7.6 billion KZT for the study of 41 objects.
In Kazakhstan, work is being carried out to improve legislation and strengthen control over the fulfillment of contractual obligations.
Thus, in particular, a draft law on digitalization and auctions has been developed, which is planned to be submitted to Parliament in the 3rd quarter. Amendments have been developed on directing 50% of signing bonuses to state geological study of subsoil, which have already been supported by key ministries.
As of today, the country has 2,615 licenses and 319 contracts in force (including 122 for exploration, 134 for production, and 63 for combined exploration and production). Thanks to the TGY platform, 2,443 subsoil users submitted reports electronically. Based on the results of monitoring, notices of violations were sent regarding 196 contracts and licenses, and penalties in the amount of 910 million KZT were imposed. The validity of 37 contracts was terminated (30 for exploration, 5 for production, 2 for combined exploration and production) and 61 licenses were revoked from unscrupulous users. Together with the Ministry of Internal Affairs and the National Security Committee, illegal mining of minerals was stopped in four regions of the country. In the 3rd quarter, it is planned to send another 350 notices and conduct 65 field inspections.
In the first 7 months of this year, 2,005 applications for subsoil use rights were received (1,070 for exploration, 35 for production), of which 997 were reviewed. As a result, 506 exploration licenses, 18 production licenses, and 114 licenses for geological study of subsoil were issued.
Also, 83 licenses were issued for the export of geological information and 37 permits for the temporary export of geological samples. Under existing contracts, 361 applications were considered (including transfer of rights and change of conditions), 30 meetings of the expert commission and 18 meetings of the Working Group were held, as a result of which 28 contract addenda were signed. Three auctions for 41 lots were held, with a signing bonus amounting to 27.8 billion KZT, which went to the budget. Changes to the Subsoil Fund Management Program are made on an ongoing basis (since the beginning of the year, 4 orders have been adopted). The next electronic auction for 35 deposits will be held on September 19.
Thus, the activities of the Government are aimed at a comprehensive solution of the tasks set by the Head of State. Sustainable growth of industry forms the basis for economic development, systematic work on the expansion of the mineral resource base ensures long-term stability, and measures to bring order in the sphere of subsoil use strengthen the principles of justice and the rule of law.
#Address of the Head of State #Export #Industry #Manufacturing industry #President's instruction
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