Kazakhstan's Investment Progress Under Scrutiny: A Call for Swift Action

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Photo by: Press Service of the Government of the Republic of Kazakhstan

The pace of attracting investment in fixed assets for 8 months and the progress of major investment projects were considered at the Investment headquarters chaired by Prime Minister of Kazakhstan Alikhan Smailov, DKNews.kz reports.

Minister of National Economy Alibek Kuantyrov reported that during the reporting period the total volume of investments in fixed assets amounted to 9.6 trillion tenge, which is 12.2% more than in Jan-August last year. Most of the funds were attracted to the mining industry, real estate sector, transportation and warehousing, manufacturing industry. 13 out of 20 regions exceeded the target, among them Mangystau, Akmola, Kyzylorda, Turkestan, Karaganda regions, Shymkent city and others. 

Prime Minister emphasized that by the end of the year it is necessary to attract at least 18.5 trillion tenge of investments in fixed assets. However, according to the results of 8 months, the annual plan has been fulfilled only by 52%. In this regard, some regions and government agencies will need to attract significantly more investment than in the past months to fulfill the task. As an example, Alikhan Smailov cited the Ulytau region, which has the lowest indicators of investment in fixed assets is only 54% for the reporting period. 

"We need the plan to be fulfilled this year, not next year. If investments will be attracted this year, we will see the result next year. And if the issue of them will be solved next year, the results will be only in 2 years. Who will wait for that? People need results now. Jobs are needed now" Alikhan Smailov

He pointed out that due to slowness in solving some infrastructure issues, the launch of the plant for hydrometallurgical processing of blister copper concentrates worth 11 billion tenge is delayed. In turn, this is holding back the economic development of the region. 

"This problem was known about 2-3 years ago. Berik Abdygaliuly (akim of the Ulytau region - note), there should be appropriate coordination work on your part, even if it falls under the competence of other state bodies. At each meeting of the Investstab we talk about the need to strengthen the work on attracting investments. However, the pace of work is very slow. There are no real results on the planned projects. There is no active position on your part. Reconsider your approaches to work, organize people to solve specific problems" Alikhan Smailov

According to him, a number of investment projects were also suspended in Almaty. In general, due to the failure to achieve the plan this year more than 200 billion tenge is not invested in the real economy of the city.

Deputy Akim of the city Alisher Abdykadyrov made a report on this issue, but the head of the Government was not satisfied with the information voiced. 

"You can report beautifully and talk a lot, but the facts, figures say the opposite. The index of physical volume of investments at you amounted to 100.1%, actually at the level of last year. This means that you are standing still, that is, there is no growth compared to last year. Pull up your work. A number of investment projects have been suspended. Accelerate their implementation and put them into operation. It is necessary to show results this year and not wait for the next year" Alikhan Smailov

Further at the meeting of the Investment Staff considered the implementation of a number of major investment projects, including a plant for the production of food products in Almaty region, an international school for 4 thousand seats in Astana and an enterprise for the production of biotechnological drugs. 

Prime Minister emphasized that for each of these significant projects the approval procedures and solution of other relevant issues are delayed. According to him, such an approach on the part of ministries and akimats to work with foreign investors is not acceptable.

"It is necessary to bring order in terms of implementation of investment projects. This is about creating new jobs and improving the welfare of our citizens" Alikhan Smailov

In conclusion, the Head of Government demanded from the Ministry of Foreign Affairs to strengthen the coordinating role in attracting major investors in Kazakhstan, to intensify the work of the national company Kazakh Invest and the republican foreign offices, as well as promptly make the necessary decisions at the level of ministries and akimats.

DKNews International News Agency is registered with the Ministry of Culture and Information of the Republic of Kazakhstan. Registration certificate No. 10484-AA issued on January 20, 2010.

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