Kazakh PM Olzhas Bektenov instructs to introduce register of domestic producers

The Government session chaired by Prime Minister Olzhas Bektenov considered the issue of support for domestic producers, El.kz cites primeminister.kz.

The Minister of Industry and Construction Kanat Sharlapayev reported on the current situation and implemented measures. On the examples of small and medium-sized businesses demonstrated the positive dynamics of production growth through the priority right to participate in procurement.

On the instruction of the Head of State Kassym-Jomart Tokayev to ensure a 60% share of Kazakhstani goods and services in the procurement of subsoil users, quasi-state and public sectors, the Government is carrying out systematic comprehensive work. To date, a number of industries have already demonstrated positive results - a stable reduction in imports and production growth. For example, in the manufacturing industry, the imported products indicator has decreased by 7 per cent, while the production volume has increased by 4 per cent. Dependence on external supplies has been reduced in the machine-building industry, in the production of metal products and paper products.

According to the International Monetary Fund's review, countries with highly developed economies are pursuing a policy of supporting and protecting the domestic market. Among them are China, the European Union and the United States. Kazakhstan takes into account the world experience and actively implements measures to support its producers, reducing the share of imported goods, Prime Minister noted.

"The Government stands firmly on the position of economic patriotism.We will always support the Kazakhstani manufacturer. This is the task of each akim and sectoral ministers. And its implementation is not of a recommendatory nature, but strictly mandatory," Olzhas Bektenov emphasised.

Measures to support the domestic market are fixed at the legislative level. The President has already signed a new Law "On Public Procurement", tightening the requirements for their implementation. At the same time, today the Majilis has introduced amendments to further strengthen the control of procurement. The amendments envisage introduction of a new mechanism - the Unified Register of Commodity Producers, which will include enterprises with established production, necessary capacities and plans for further development. The main purpose of this platform is to systematise the country's key industries and protect domestic business. Enterprises from the register will be able to count on state support on a priority basis. At the same time, they will be subject to counter obligations: to modernise production, improve competitiveness, and increase employee salaries. Companies will be monitored through online digital screening, which will reduce corruption risks. Monitoring will be carried out by tax and customs services, labour inspections and other agencies.

Prime Minister emphasised the need to intensify work on import substitution, including through off-take contracts.

This year, major entities such as Samruk-Kazyna and subsoil users signed 382 long-term agreements and ofteik-contracts worth 635 billion tenge. These figures are a record for recent years. In addition, by establishing a priority right to participate in public procurement, lists of 4201 types of goods, works and services of light, machine-building, chemical, and paper industries were approved. Over the past 7 months, the number of concluded contracts with domestic producers in these sectors increased by 1.4 times compared to the same period last year.

Thus, the growth of the volume of orders of Kazakhstan production of pumping equipment Karlskrona LC AB in 2024 was 30% - compared to the same period last year and 70% - compared to 2022, General Director Talgat Alpysbaev reported. Loading of paint and varnish plant "Raduga" due to the implemented measures increased from 30% to 100%, and the volume of products for seven months of this year increased 3 times - from 900 tonnes to 2,700 tonnes, said General Director of the enterprise Dmitry Sharapaev.

In the issue of regulation of public procurement, Head of the Government has set a number of tasks. One of the urgent problems is duplication of catalogues of Kazakhstani goods, which allows importing products and later selling them as domestic. The Ministry of Finance has created an electronic catalogue for public procurement that meets international standards.

Prime Minister instructed the Ministry of Finance together with the Ministry of Trade and other interested government agencies to conduct an analysis and eliminate redundant catalogues of goods, works and services.

Also, the Ministry of Industry together with state bodies and organisations to develop an effective mechanism for monitoring the obligations of large contractors in terms of the use of domestic raw materials. The practice of purchasing imported goods bypassing similar items of Kazakhstani production is unacceptable, stressed Olzhas Bektenov.

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