Kazakh PM held an Interdepartmental Commission on Import Substitution and Export Promotion meeting

Prime Minister Askar Mamin chaired the first meeting of the Interdepartmental Commission on Import Substitution and Export Promotion, Strategy2050.kz reports with reference to primeminister.kz

Reports on ongoing work to develop the sectors of economics of simple things, local content and import substitution were made by Deputy Prime Minister Roman Sklyar and Chairman Ablay Myrzakhmetov of the Board of the Atameken National Chamber of Entrepreneurs.

As of January 31, 2020, 993 projects (agro-industrial complex – 700, manufacturing sector – 210, processing of agro-industrial complex – 83) in the amount of 236 billion tenge were approved under economics of simple things’ soft lending program. Second-tier banks are considering 295 projects worth 201 billion tenge. Thus, development in the near future is forecasted for a total amount of 437 billion tenge, which is 72.7%.

The volume of regulated purchases from domestic producers in the light industry for the second half of 2019, compared with the first half of the year, increased by 58%, and the furniture industry – by 72%. The measures taken had a positive effect on macro-indicators of industries. For example, according to the results of the year, the volume of production in the light industry grew by 7%, investment in fixed assets – by 18.7%.

One of the effective tools to support the development of production this year will be the mechanism of off-take contracts between the quasi-public sector and domestic product developers.

362 goods with import substitution potential in the amount of 3.9 trillion tenge were grouped and selected in the regulated procurement by the project office. Today, together with the business community, the development of more than 70 import substitution projects for 198.6 billion tenge has begun.

By regions, the largest number of projects is presented in Turkestan, Aktobe, Kyzylorda, Karaganda, Eastern Kazakhstan and Pavlodar regions, whereas in Nur-Sultan and Almaty, Atyrau and Mangystau regions there are no submitted projects yet.

The meeting participants considered projects on import substitution in the woodworking, furniture, chemical, textile, shoe and other fields.

The course of the work on the Industry Information System was discussed, which will make it possible to conduct on-site monitoring of businesses receiving state support.

The Head of Government instructed to continue active work on import substitution and export promotion.

Image credit: primeminister.kz