Kazakh Prime Minister Calls for Simplifying Investment Processes and Removing Obstacles
Kazakh Prime Minister Directs Streamlining of Investment Project Launch Procedures
At a recent government session in Astana, Kazakh Prime Minister Olzhas Bektenov directed state agencies to streamline investment project launch procedures. The Prime Minister emphasized the need for a swift evaluation of support measures and proposed improvements to enhance the efficacy of investment stimulation.
One key directive from Bektenov was to ensure the full-fledged launch of the National Digital Investment Platform. This platform is designed to expedite administrative procedures and reduce barriers for investors, making it easier for them to participate in various projects.
Deputy Prime Minister and Minister of National Economy Nurlan Baibazarov outlined ambitious plans to attract 22.1 trillion tenge ($49.2 billion) in fixed asset investments this year. This marks a 22% increase over the previous year, with 234 projects valued at 2.3 trillion tenge ($5.1 billion) expected to be implemented through the Unified Pool of Investment Projects.
Kazakhstan has been implementing various initiatives to entice private capital, such as improving the mechanism for concluding an Investment Agreement and introducing an Investment Obligations Agreement that guarantees tax stability for a decade. Additionally, fiscal incentives have been put in place to attract private funds for geological exploration and replenishment of the mineral resource base in the oil and gas sector.
The Prime Minister stressed the importance of state support tools in global investment competition, highlighting priorities like high-value production, technology transfer, and localization. While Kazakhstan offers various preferences to investors, including tax benefits and customs exemptions, Bektenov also expressed concerns about the targeted use and effectiveness of these measures.
Bektenov pointed out the underdevelopment of special economic zones compared to most developed countries and emphasized the need to create a favorable administrative environment and infrastructure to attract investors. He urged for substantial improvements in local maintenance and called on investors to reciprocate state support by enhancing productivity, promoting labor safety, and boosting exports.
The Prime Minister advocated for subsidy reforms in the agro-industrial complex to incentivize the adoption of advanced agricultural technologies. He also highlighted the negative impact of lengthy land acquisition processes and complex construction regulations on the investment climate, calling for the involvement of domestic banks and international financial institutions to attract additional sources of financing.
In order to enhance investor convenience, Bektenov proposed the establishment of a single digital platform for providing state support measures. He instructed the Kazakh Foreign Ministry and Kazakh Invest national company to formulate a comprehensive strategy to attract foreign investments, targeting specific countries, transnational corporations, and industries. Additionally, he tasked the Baiterek holding company to strengthen efforts to secure additional co-financing for investment projects.
Overall, the Kazakh government is committed to creating a more conducive environment for investors and stimulating economic growth through targeted policies and initiatives. It is evident that a coordinated effort involving various stakeholders will be crucial in achieving the desired goals of attracting investment and driving sustainable development in the country.
