Halyk Finance has expressed concern over the growing role of the government as a source of long-term investment in infrastructure and the capacity of Kazakhstani enterprises. The share of budget funding in the structure of capital investment reached 21.9% in the first half of the year.
Over the first six months of 2025, investments in capital assets in Kazakhstan grew by 19.3% year-on-year. This growth was driven both by the low base of the first half of the previous year and by increased investment in the public sector, including expanded government spending on infrastructure. Without budget funds and contributions from individual developers, growth would have amounted to only 8%.
The share of companies’ own funds among sources of investment financing decreased from 71.9% in the first half of 2024 to 64.6%. Conversely, the share of government spending increased by 7.3 percentage points, reaching 21.9%. The share of credit resources also declined, to 3.8%.
«This year, private investments are being replaced by public ones. However, it should be noted that investments from companies’ own funds often include the resources of state-owned enterprises, which are essentially quasi-budgetary,» Halyk Finance stated.
The manufacturing industry made the largest contribution to investment growth in Kazakhstan’s production infrastructure, with the volume of investment in the sector increasing by 48.9%. Nearly half of that investment (47%) was provided through state financing. However, the sector’s share of total investment remains relatively low at 12.4% — a modest figure, considering that modernizing its technological base is key to boosting productivity and competitiveness in the wider economy.
In terms of investment purposes, the largest portion — 67.4% — went toward the construction and major repair of buildings. These projects are mainly financed by state funds under various infrastructure and social programs. Another 28.2% of investments were directed toward equipment purchases by enterprises.
Experts note that, given the high share of state funding, future investment growth could be constrained by limited budget capacity. Private investment remains weak due to high inflation, tight monetary policy and fluctuations in the tenge exchange rate.
«Among the factors limiting investment activity, we can highlight the high level of state involvement in the economy, institutional barriers and the low engagement of the banking sector in financing private investment projects. Additional restraints include the high debt burden on businesses and a lack of mature, well-prepared projects that meet financial institutions’ requirements,» Halyk Finance added.
In 2024, capital investment in Kazakhstan totaled $35.8 billion — an 8% increase compared to the previous year.
