Utility systems, roads, gas networks and housing construction. How Kazakhstan is going to develop its economy
During his address to the National Kurultai in Atyrau, President Kassym-Jomart Tokayev of Kazakhstan revealed a plan to boost the national economy. As he highlighted, the country needs new projects capable of bringing multiplicative effects. He’s instructed the cabinet to implement four large-scale infrastructural initiatives this year.
«First of all, we have to overhaul 55 existing heating plants and upgrade about 6,500 kilometers of utility systems. This would improve the quality and reliability of utility services for people and businesses,» Tokayev said.
According to some previous media reports, Kazakhstan’s government plans to allocate more than $1 billion for the modernization of 6,500 kilometers of utility systems. In general, authorities want to raise around $6.6 billion through a tariff reform by 2029 in order to upgrade 62,000 kilometers of utility systems and decrease the rate of their wear-and-tear by 20%.
In addition, the president believes that the construction and reconstruction of roads will be a powerful boost for the entire economy. He has ordered the cabinet to cover with this work not less than 12,000 kilometers of roads. According to the Ministry of Industry, in 2024, it will build 4,700 kilometers of new roads between regional centers. All in all, about 9,500 kilometers of roads are going to be either built or repaired this year.
«The cabinet must work harder on the issue of providing various settlements with natural gas and upgrade not less than 1,700 kilometers of gas pipelines. As a result, this will secure access to gas for more than 300,000 people. While implementing these infrastructural initiatives, the cabinet must closely cooperate with local businesses and domestic production entities,» Tokayev highlighted.
As of 2023, 12 million people in Kazakhstan (60%) had access to natural gas.
On top of that, the president announced the launch of a new mortgage program with an interest rate of 7%. He said that the amount of housing that people can rent and then buy out must be increased. This would activate the construction sector and would help those who need their own house.
«It is necessary to launch a new housing program which would also cover the needs of people living in villages and regional centers. For socially vulnerable groups, the interest rate shouldn’t be higher than 7%. Also, I am ordering the cabinet to boost the volume of housing rentals with the right for their residents to buy them out,» Tokayev stated.
In 2023, Kazakhstan amended its concept of managing state finances. It is expected to be relevant until 2030. The new concept allows the National Fund to spend money for infrastructural projects through target transfers to the state budget when authorized by the president. However, target transfers from the fund cannot be used to cover operating expenditures of the budget. In 2024, the deficit of the state budget is expected to reach 2.8% of the national GDP.
