NUR-SULTAN – Kazakh President Kassym-Jomart Tokayev addressed the assembly of the Overseas Buyers’ Council that this 12 months sought options to restoring financial and funding exercise in Kazakhstan amid the coronavirus pandemic, and growing and boosting the funding attractiveness of the nation’s oil and fuel sector.
The Overseas Buyers Council was established in 1998 to make sure dialogue between the Kazakh authorities and international buyers and talk about points buyers would possibly face. The council consists of 37 international firms in addition to prime Kazakh officers.
Opening the discussion board, Tokayev stated that the worldwide pandemic negatively impacted virtually all areas and famous the significance of becoming a member of efforts to beat its penalties.
A set of “unprecedented measures” taken within the aftermath of the primary COVID-19 wave to help companies and inhabitants will assist scale back unfavorable penalties of the disaster and keep away from extreme financial recession, stated Tokayev.
He stated there’s a want for basic modifications and reforms to spice up funding attractiveness, guarantee transparency and predictability of presidency insurance policies.
Tokayev prompt creating new funding devices. In doing so, a strategic funding settlement was developed to help main buyers. This settlement entails a set of state help measures together with tax preferences, concessional financing, assured purchases from the state, and export help.
He additionally confused the significance of bettering situations for doing enterprise within the nation. The federal government, he stated, will put together a brand new regulatory system. All management and supervisory, allowing and different regulatory devices will endure a large-scale audit.
Tokayev additionally instructed the digital gathering concerning the growth of a brand new Environmental Code based mostly on the perfect approaches utilized in OECD nations.
“Enterprises which have applied these applied sciences can be exempted from emission charges. I wish to notice that not each nation has such a mechanism the place the state shares environmental prices with firms. Actually, this can be a massive scale public personal partnership undertaking. We consciously chosen this strategy. We anticipate companies to completely adjust to their a part of the agreements,” stated Tokayev.
The draft code has been lately adopted by the Majilis, decrease chamber of the Kazakh Parliament, and was despatched to the Senate, an higher chamber of the Kazakh Parliament.
The doc has a number of main rules, together with the ‘polluter pays and fixes’ precept that may management massive firm emissions with fines and duty for environmental harm, and the precept obliging industrial enterprises to endure a technological audit to be supplied the perfect accessible applied sciences (BAT) to supply fewer emissions.
Growth of IT
Kazakhstan also can profit from alternatives within the IT sector, stated Tokayev, which gave a robust increase to speedy growth of the digital financial system amid the pandemic.
However the growth of Kazakhstan’s IT business, the place the nation plans to draw almost 500 billion tenge (US$1.2 billion) within the subsequent 5 years, wants critical help from world expertise firms.
“At present, round six p.c of worldwide (digital) mining is concentrated in Kazakhstan. The event of IT, engineering and different high-tech fields additionally provide vital export alternatives. We plan to draw investments from main world gamers in cloud computing and platforms. Preparations have begun to construct 4 mega knowledge facilities in Nur-Sultan, Almaty, Shymkent and Atyrau. These are great computing capacities that can be situated on a significant worldwide data superhighway,” he stated.
Alternatives within the pharmaceutical business
Tokayev emphasised the significance of growing the home pharmaceutical business.
Kazakhstan seeks to convey the share of home pharmaceutical manufacturing as much as 50 p.c by 2025 together with speedy growth of medical gear and consumables manufacturing. These areas are open to funding, he stated, and such initiatives will obtain full help from the state.
Oil and fuel sector
The oil and fuel sector, which has supported the nation’s regular financial development through the years and served as a driving drive in attracting international investments, helped construct new sectors of the financial system, equivalent to oil refining, petrochemicals, oilfield providers, pipeline and maritime transport.
The business, nevertheless, must adapt to new realities, stated Tokayev, given the decreasing demand for oil and declining funding attractiveness, and authorities insurance policies could have a key function on this.
Tokayev confused the significance of well timed completion of main oil and fuel initiatives on the nation’s Tengiz, Karachaganak and Kashagan fields. He instructed the federal government to transition to the full-scale growth of Kashagan and equipment the development of the fuel processing plant within the subject.
Growing funding attractiveness of geological exploration additionally requires consideration, stated the President. He instructed the federal government and oil and fuel firms to work collectively to enhance the business’s regulatory framework, think about present realities and the business’s future growth prospects.
“The Ministry of Power ought to think about the potential for offering particular situations for the manufacturing and export of oil and fuel for firms keen to put money into refining initiatives,” stated Tokayev noting the significance of environmental safety and the event of the low-carbon financial system.
He reassured these in attendance that every one ideas voiced on the assembly can be totally thought of by the federal government.
“The federal government will work to deal with the issues that have been introduced up immediately by the members of immediately’s vital assembly. I consider we’d like a breakthrough in our determination making course of. As president of the nation, I’ll carefully monitor the choice making and the course of interplay between our massive companions and associates,” concluded Tokayev.