President Tokayev warns of the middle-income trap in Kazakhstan

According to Kazakh President Kassym-Jomart Tokayev, Kazakhstan has fallen into the so-called middle-income trap. In an interview with the Turkistan newspaper, he warned that this is not an abstract concept, but a reality the country’s citizens are facing today. Many people earn relatively good incomes, but they are being «diluted» by inflation, mortgages and consumer loans. Moreover, any disruption — such as illness or job loss — can easily undermine a family’s financial stability.

The president noted that, despite the country’s apparent prosperity, significant economic imbalances persist. These problems are being addressed too slowly, which he described as «growing pains» that the government must urgently resolve.

Tariffs and the budget

Tokayev also announced that the government has decided to freeze utility rate increases for the winter to avoid placing additional financial strain on ordinary citizens.

At the same time, he called for strict budget discipline. He emphasized that «flooding the economy with money» is unacceptable, as it only fuels inflation. Only projects deemed essential to the state will receive funding.

Pension funds

The president also addressed withdrawals from the Unified Accumulative Pension Fund (UAPF). According to him, approximately $397 million was withdrawn from the fund under the pretext of paying for dental services and even plastic surgeries. He described these actions as fraudulent, noting that they exploited a well-intentioned initiative designed to help people improve their living conditions and health at the expense of part of their pension savings. He said that law enforcement agencies are already investigating those cases.