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Prime Minister: Important to strengthen export support programs, stimulate innovation and expand production

Prime Minister: Important to strengthen export support programs, stimulate innovation and expand production
Фото: primeminister.kz 22.05.2024 11:10 2176

The issues of promoting non-resource exports were considered at the Government session under the chairmanship of Prime Minister Olzhas Bektenov, El.kz cites primeminister.kz.

Increasing the volume of non-resource exports is one of the key factors of diversification of the economy of Kazakhstan. The Minister of Trade and Integration Arman Shakkaliyev reported on the measures taken in this direction at the Government session. 

At the end of 2023, the target indicator for non-resource exports was achieved and exceeded by 3%. The total line of products sold abroad increased by 278 items. The number of permanent active exporters increased by 300 companies from 2019: from 460 to 760. 

The geography of non-resource exports last year expanded to 135 countries. Supplies to Asian countries increased: to China by 8%, South Korea by 26%, and Vietnam by 46%. At the same time, the physical volumes of supplies of processed agricultural products increased: flour by 1.1%, sunflower oil by more than 55.5%, beverages by 42.8%. 

To further increase exports, the Ministry of Trade has identified key areas. First of all, it is to expand exports of finished products to China in the medium term by 2.5 times and bring them to $12.5 billion. 

In-depth work on increasing trade turnover with the EAEU countries and Central Asia will be continued. For this purpose, the necessary infrastructure for cross-border trade is being created. 

Increasing supplies of high-margin goods to Middle Eastern countries (chilled lamb, poultry meat and by-products) is being worked out. 

Highly competitive markets of the European Union, which are ready to purchase Kazakhstani food and organic products, are also a priority.

To train domestic exporters, the Ministry of Trade and Integration together with professional market participants is launching a trade gas pedal based on QazTrade JSC, which will structure niche trade flows. In general, service measures are concentrated on the basis of this institution, which annually covers more than 450 companies. 

It is expected that the implementation of these and other comprehensive measures will increase the number of active exporters.

Prime Minister noted that this year the Government has raised a high bar to bring the volume of non-resource exports to $37.7 billion. By the end of 2025, the volume of exports of processed products and services should reach $41 billion. 

"We should set even more ambitious goals and strive to exceed these plans. It is important that all relevant ministries, akimats, and especially business are involved in this work. It is necessary to qualitatively change the structure of non-resource exports towards high value-added products. If we look in detail, the growth of exports of services is steady growth of about 30% last year, while exports of non-resource goods for this period decreased by 5.7%. At the same time, imports of commodities grew by 21.5%. The difference is more than twofold, which worsens the trade balance. Therefore, we need to increase the production and export of high value-added goods. We must actively support domestic producers and exporters," Head of the Government Olzhas Bektenov said.

Prime Minister emphasized the importance of strengthening support for export-oriented enterprises by providing them with consulting services, information support and assistance in entering new markets. In Kazakhstan today there are more than 20 tools to support exporters such as insurance, financial and service. 

The need to expand markets for domestic products and promote them more effectively abroad has been noted. For these purposes, trade representatives are sent to individual states, but the work in this direction is slow, it is necessary to intensify. 

Olzhas Bektenov recalled the recent agreements with the Deputy Premier of the State Council of the People's Republic of China on expanding trade relations with China. Emphasizing the prospects for the development of this direction, Prime Minister instructed the Ministries of Trade, Foreign Affairs and Finance to ensure the dispatch of trade representatives to Beijing by July 1 and full readiness to open a trade mission of Kazakhstan in XUAR.

"It is necessary to emphasize support for exports of medium and high value-added products.  For this purpose, it is important to strengthen the existing export support programs, stimulate innovation and expand production. Here a complex of measures to support domestic producers, which we are currently working on, should play a big role.  In general, we really need new and bold approaches in trade policy," Olzhas Bektenov concluded. 

Following the consideration of the issue, Prime Minister gave a number of specific instructions to government agencies: 

  • The Ministry of Trade and Integration together with the Ministries of Foreign Affairs and Industry, as well as other interested government agencies and organizations have been instructed to work on the diversification of export markets for Kazakhstani goods within a month. A concrete action plan to further increase the volume of non-resource exports should be submitted by August 1.
  • In a systematic manner, it is necessary to constantly monitor the requirements for importers in foreign partner countries and inform our business in a timely manner. 
  • Together with the interested state bodies on a permanent basis to work on reducing barriers for exporters, especially on simplification and digitalization of administrative and customs procedures both in the country and abroad.
  • The Ministry of Transport has been tasked to improve the transportation and logistics infrastructure necessary for the efficient export of non-resource goods.
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