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Kazakh President Tokayev expands investment powers to boost economic growth

Astana, 6 December, 2023 (GNP): A decree signed on December 4th, President Kassym-Jomart Tokayev has initiated groundbreaking measures aimed at catalyzing investment inflow into Kazakhstan’s economy.

The decree, highlighting a comprehensive plan, significantly empowers the Investment Promotion Council (Investment Headquarters) with unprecedented authority.

With this decree, the Investment Promotion Council is vested with compelling decision-making powers over both central and local government bodies and entities in the quasi-public sector.

Additionally, the Council is granted the authority to formulate temporary regulatory legal acts with the force of law, augmenting government efforts to create a conducive investment environment.

This milestone decree aligns with President Tokayev’s economic policy, unveiled in his state-of-the-nation address in September, focusing on economic reforms, diversification, transparent tax policies, and equitable management practices.

President Tokayev’s proactive approach to attracting foreign investment and bolstering global economic ties has been consistently evident.

Notably, during the United Nations Framework Convention on Climate Change (COP28) in Dubai, the President engaged in discussions with key investors, including UAE Minister of Investment, Mohammed Al-Suwaidi.

These conversations centered on potential collaborations between UAE’s Presight AI Holding, Samruk-Kazyna Sovereign Wealth Fund, QazaqGaz, and Kazakhstan Temir Zholy, particularly emphasizing artificial intelligence

This diplomatic initiative resulted in Kazakhstan securing 20 agreements worth $4.85 billion in green energy, infrastructure, and digitization on the sidelines of COP28.

Also Read: Uzbekistan’s constitution and sustainable development goals

Recognized financial expert Andrey Chebotarev hailed President Tokayev’s initiative, emphasizing the critical need for investments to modernize Kazakhstan’s energy system and drive ambitious industrialization plans

. The enhanced authority granted to the Investment Headquarters is part of a wider strategy to fortify Kazakhstan’s investment climate.

Recent amendments to the Tax Code and Government Decrees on State Support for Investments have provided investors with increased flexibility in directing investments across various economic sectors.

Moreover, the Investment Headquarters’ newfound capability to propose disciplinary actions aims to ensure strict adherence to investment initiatives, thereby instilling greater confidence among investors.

Chebotarev emphasized the pivotal role of legislative amendments in building investor confidence, stating, “Investments translate into new jobs, knowledge, and technologies, offering fresh opportunities for the country’s citizens.”

Despite a global decrease in investment flows, Kazakhstan witnessed an 83% surge in net foreign direct investment (FDI) flows, reaching $6.1 billion, surpassing other post-Soviet Central Asian countries. The country has demonstrated a consistent influx of FDI, with figures rising to $13.3 billion in the first half of 2023, primarily channeled into raw material extraction.

President Tokayev’s decree aims to redirect investments into pivotal sectors, particularly manufacturing, ensuring sustainable economic development. These measures are anticipated to streamline decision-making processes, enhance accountability, and foster a more conducive investment landscape for both domestic and foreign investors.