Tokayev discusses measures to revive financial and funding exercise in Kazakhstan


Kazakhstan’s President Kassym-Jomart Tokayev has mentioned measures to revive financial and funding exercise in Kazakhstan within the context of the coronavirus pandemic, in addition to problems with growing and growing the funding attractiveness of the nation’s oil and fuel sector, have been mentioned intimately.
During a working assembly of the Council of Foreign Investors underneath the President of Kazakhstan held within the format of a video convention, Tokayev mentioned the worldwide pandemic has had a detrimental affect on almost all spheres of life of nations, and famous the significance of becoming a member of efforts within the combat towards its penalties.
Tokayev expressed gratitude to the businesses within the Council, which didn’t stand apart throughout this troublesome interval for Kazakhstan, and supplied vital help to their enterprise staff, to the social sphere and to the residents of the nation, Akorda mentioned in a press launch.
According to Kazakhstan’s President, the state has taken a set of unprecedented measures in the course of the pandemic to assist companies and the inhabitants, which made it potential to cut back the detrimental penalties of the disaster and keep away from a critical financial recession.
He additionally identified the necessity for critical transformations and reforms aimed toward growing funding attractiveness, making certain transparency and predictability of presidency insurance policies. To obtain these objectives, Tokayev put ahead various proposals and initiatives, the press launch learn.
As the primary activity, Tokayev outlined the creation of latest funding devices. For this, in accordance together with his directions, the mechanism of the Strategic Investment Agreement has already been developed, which is able to guarantee assured stability of legislative situations on the a part of the state for all the interval of its validity.
Tokayev additionally targeted on the necessity to enhance the enterprise local weather within the nation. The authorities will put together a brand new regulatory system. All management and supervisory, allow and different regulatory devices might be topic to a large-scale audit.
The President additionally targeted on the problem of ecology, informing the international contributors of the assembly in regards to the improvement of a brand new Environmental Code, ready on the idea of the modern approach of the OECD member international locations.
“Enterprises that have implemented these technologies will be exempted from emission fees. Let me emphasise that such a mechanism, when the state shares environmental costs with enterprises, does not exist in every country. In fact, this is a large-scale public-private partnership project. We deliberately chose this approach. We expect that the businesses will fully fulfil its part of the agreements,” Tokayev mentioned.
The Kazakh head of state additionally highlighted the probabilities of the IT sector, which, within the face of the detrimental penalties of the pandemic, supplied a robust incentive for the accelerated improvement of the digital financial system. According to him, the event of the home IT trade, the place Kazakhstan plans to draw no less than 500 billion tenge inside 5 years, requires critical assist from international know-how corporations.
“Today, about 6% of the world’s digital mining is concentrated in Kazakhstan. In addition, the development of the IT market, engineering and other high-tech services opens up serious opportunities for export. We plan to attract investments from major global players in the field of cloud computing and platforms. Preparatory work has begun on the construction of four mega-data processing centres – in Nur-Sultan, Almaty, Shymkent and Atyrau. They have colossal computing power that will be located on a large international information highway,” Tokayev mentioned.
He burdened the significance of growing the home pharmaceutical trade. The President mentioned that by 2025 Kazakhstan expects to extend the share of its personal pharmaceutical manufacturing within the nation to 50%. In addition, the manufacturing of medical tools and consumables might be actively developed. These areas are open for funding, and such tasks, as was famous within the speech, will obtain full assist from the state.
Oil and fuel attracts international funding
Within the framework of the occasion, problems with improvement and enchancment of the funding local weather within the oil and fuel sector have been individually mentioned.
Addressing the contributors, the President famous that this trade has turn out to be a driving pressure in attracting international funding to Kazakhstan. The improvement of this space has contributed to the rise of latest sectors of the financial system, corresponding to oil refining, petrochemicals, oilfield companies, pipeline and sea transportation.
Tokayev mentioned the face of declining demand for oil and a lower within the funding attractiveness of this trade, a troublesome adaptation to new realities lies forward, and a big a part of this adaptation might be related to state coverage.
In this context, Tokayev referred to as for joint efforts to deal with various essential duties.
The Kazakh president identified the significance of the well timed completion of huge oil and fuel tasks on the Tengiz, Karachaganak and Kashagan fields. In explicit, the President instructed to well timed implement the transition to the full-scale improvement of Kashagan and speed up the implementation of the challenge to construct a fuel processing plant at this area.
Tokayev additionally drew consideration to growing the funding attractiveness of geological exploration. He instructed the Government, along with oil and fuel corporations, to enhance the sectoral regulatory framework, making an allowance for the present realities and imaginative and prescient for the longer term improvement of the trade.
Focusing on the prospects of the oil and fuel chemical trade, the President expressed the opinion that success in selling this space can considerably change the specialisation of Kazakhstan.
“The Ministry of Energy should think about the possibility of providing special conditions for the production and export of oil and gas for companies willing to invest in refining projects,” Tokayev mentioned.
In addition, the Head of State famous the significance of environmental safety and the event of a low-carbon financial system. He recalled that in 2021 a brand new Environmental Code will come into pressure according to superior worldwide requirements. The President urged stakeholders to contribute to the event of this intensive coverage doc.
In his closing statements, Tokayev assured that every one the proposals and requests made in the course of the assembly might be rigorously labored out by the Government and might be taken underneath its private management. “The government will tackle the problems that were voiced by the participants of today’s important meeting. I believe we need a breakthrough in the decision-making process. As the President of the country, I will closely follow the decision-making process and the development of interaction with our major partners and friends”, Tokayev concluded.
The European Bank for Reconstruction and Development (EBRD), Ernst & Young, the Asian Development Bank, Baker McKenzie International, Citigroup, General Electric (GE), J.P. Morgan Chase International, Marubeni Corporation, Sberbank of Russia, the World Bank, Shell Kazakhstan, Royal Dutch Shell, Italy’s ENI, Russia’s LUKOIL, US’ Chevron and ExxonMobil, France’s Total and China National Petroleum Corporation (CNPC) participated within the assembly.