GOVERNMENT: Kazakhstan increases investment in infrastructure
Last week Prime Minister Karim Massimov met with Managing Director of the International Monetary Fund Christine Lagarde. During the meeting the parties have discussed a wide range of issue including in the field of improvement of monetary policy, structural reforms, as well as the medium-term prospects for economic development of Kazakhstan.
IMF Regional Conference was held with the participation of Karim Massimov and Christine Lagarde. The event discussed responses to the existing challenges in the short and medium terms. The sitting has also considered macroeconomic policy framework, strengthening of institutions and monitoring systems, issues of implementation of structural reforms and qualitative transformation of regional integration.
Kazakh PM noted that large-scale privatization program will be implemented in parallel with the development of the international financial center "Astana". "Privatization program will be implemented in parallel with the development of international financial center in Astana, as well as IPO, SPO on the platform of the international financial center," said Mr. Massimov at a press conference in "Rixos" hotel after the completion of the Regional Conference of the International Monetary Fund.
Karim Massimov took part in the Silk Road Countries Forum themed "Energy. Resources and Sustainable Development". Speaking at the forum Prime Minister noted that the Silk Road Prime contributed to the development of trade as well as boosted exchange of advanced experience, achievements and knowledge of that time and promoted peace and dialogue across Eurasia for centuries.
Karim Massimov also took part in the Investment Summit which was held within Astana Economic Forum. PM announced that Kazakhstan should minimize the conflict of interest and populism in the civil service. He stressed that to achieve this goal it is necessary to ensure and restore the confidence of citizens in the state apparatus and judiciary.
During the meeting with the Director General of the World Trade Organization Roberto Azevedo, who arrived in Kazakhstan for participating in the Astana Economic Forum, Mr. Massimov noted that Kazakhstan's accession to the WTO had to become a signal for the international community about Kazakhstan's intention to be a stable and predictable partner with the most favorable investment and business climate in the region.
In turn, the WTO Director General expressed readiness for future strengthening of mutually beneficial cooperation and noted the effectiveness of the measures Kazakhstan took on the way to improving the business climate and increasing the investment attractiveness, which was reflected in the Doing Business Index by the World Bank.
Speaking at Kazakhstan Investment Summit Minister for Investment and Development Asset Issekeshev said that industrialization will be directed to the development of export-oriented industries with high added value focusing on markets in the first place, Russia, Central Asia, Iran, and western China. In addition Kazakhstan plans to develop the productive sector of services which can also increase the share of non-oil GDP and exports. The productive sector of services includes transit and logistics, the new Silk Road between China, Europe and the Middle East, tourism, engineering and etc.
Mr. Issekeshev noted, in the last 5 years Kazakhstan has invested more than $5 billion in infrastructure. It is very important for the country as Kazakhstan is landlocked. However, our country is a land bridge between China, Russia, Central Asia and Iran. Over the next 3 years it is planned to invest over $10 billion in infrastructure.
At a meeting on the implementation of investment projects Asset Issekeshev said that in the current year 120 new industries will create 14,000 permanent jobs. Thus, 25 projects are being implemented in special economic zones, 30 projects - with the participation of foreign investors.
