ASTANA, Kazakhstan, September 2. The high level of state participation in Kazakhstan’s economy is impending private sector development by disrupting market equality and stifling entrepreneurial initiatives, Kazakhstan’s President Kassym-Jomart Tokayev stated during a joint parliamentary session with his annual address to the nation, TurkicWorld reports.
Tokayev highlighted that the country has yet to establish an optimal policy for managing state-owned enterprises.
"We must acknowledge that our policies for managing state enterprises are not yet optimal. We need to legally regulate the goals, functions, types, funding methods, and other aspects of their activities. Furthermore, stability and a systematic approach are required in financial relations between holdings and the government," Tokayev said.
He noted that over 10.000 redundant and outdated requirements that restricted entrepreneurial activities have already been removed as part of the first stage of reforms. Additionally, the General Prosecutor's Office is now involved in overseeing major investment projects, and simplified conditions such as "green corridors" for investors have been established. Economic crimes are also being decriminalized.
"However, complaints from entrepreneurs about excessive control and oversight by state agencies continue. The government and the General Prosecutor's Office must address negative factors affecting the investment climate. Clarity is also needed in interactions between the state and capital owners in asset recovery efforts.
Last year, I expressed my firm stance on this issue during a meeting with businesses. We agreed that an essential condition for capital amnesty would be investing funds into Kazakhstan's economy. The key is ensuring these investments benefit the country. This should be enshrined in regulations. Entrepreneurs listed in the relevant register should be given the opportunity to enter agreements without acknowledging the illegality of transferred assets. This is a significant step for large entrepreneurs, but they must also collaborate with the government and the General Prosecutor's Office to direct funds into the national budget," the president added.
