Time has come to implement policy of "reasonable protectionism" - Timur Kulibayev
In Kazakhstan, it is necessary to implement a policy of "reasonable protectionism", as well as the development of import substitution. Chairman of the Presidium Timur Kulibayev said this during the meeting of deputies of the Mazhilis of Parliament with the leadership of the Atameken NCE RK.
During his report, the Chairman of the Presidium of the Atameken NCE RK also stressed the need for effective use of the potential of domestic demand and measures to protect the domestic market, while the priority should remain for the saturated food basket of the citizens of Kazakhstan.
"Today the reality is that the state is the main solvent customer. The share of regulated purchases in relation to GDP is 25%, including the purchase of quasi-sector and subsoil users. The total volume of purchases is about 15.8 trillion tenge. KZT 2.1 trillion is the direct purchase of manufacturing goods. It is necessary to use this potential to the maximum extent possible and put the demand in the right direction," Timur Kulibayev said.
Separately, Timur Kulibaev dwelt on the share of local content in the procurement, which currently amounts to only 30%. In the medium term, this figure should increase by 2-2.5 times, which will provide an additional sales volume of about 1 trillion tenge for manufacturing companies.
"Support mechanisms in the form of long-term contracts and off-take contracts up to 5-7 years should be aimed at replacing the "net import" and the development of new types of production. At the same time, such agreements should be concluded only in return for counter-contractual obligations of business to improve competitiveness," Timur Kulibayev said.
As for countervailing obligations, they can be controlled through a digital system of monitoring the effectiveness of government support measures. By the way, the National Palace has already started to implement a similar system of digital monitoring of the industry. In December 2019, the Atameken NCE RK will present the first stage of the system. In the future, this system can be extended to monitor the effectiveness of the state program of the agro-industrial complex.
"In the next 2-3 years, it is very important to focus on domestic resources, meet demand, saturate the domestic market and thus support the real sector," Timur Kulibayev summed up.
Also, the Chairman of the Atameken Presidium spoke in more detail about the situation with state programs, each of them has different operators, different rates, which disorientates the market.
"It is necessary to develop common priorities: which industries to support and give to the market. It is necessary to audit all state programs. Let's do this work together," Timur Kulibaev suggested.
Also within the limits of a meeting the Chairman of Presidium of the Atameken NCE RK Timur Kulibayev and the Head of Fraction of the Nur Otan party in the Mazhilis of RK Nurlan Nigmatulin have signed a Roadmap on the support of enterprise activity for 2020.
The document will allow solving system problems of businessmen including the solution of problems in the sphere of public-private partnership, development of business in rural areas, strengthening of business responsibility to consumers.
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