Kazakhstan establishes Council on Import Substitution
A Council on Import Substitution will appear in Kazakhstan. Chairman of the Board of the Atameken NCE RK Ablay Myrzakhmetov has announced the creation of the new industry body during the briefing, emphasizing the important role of the Council in the growth of the non-resource productive sector of the economy.
The idea to create such sectoral organization on the basis of the Atameken NCE RK was suggested by the head of Alageum Electric Saidulla Kozhabayev in his video message, which was distributed in social networks and messengers on the eve of the New Year. His candidacy has been proposed for the post of the Council Chairman.
"As the head of a large manufacturing enterprise, I know what it is to be a manufacturer. I understand the importance of industrial development in the economy. Therefore, I fully support the proposal of the Head of the Government. Today all the conditions have been created for the development of the real, non-raw materials sector of the country. The Government is ready to continue to support with cheap money, promote guaranteed sales of products in procurement, and products for export. Now we only need initiative from business," Saidulla Kozhabayev said during the briefing.
One of the key tasks of the Council is to unite the experience of successful enterprises in the manufacturing industry and agriculture to develop effective proposals for import substitution to the Government.
"In the dynamics since 2016, the volume of import of manufacturing goods has increased by 36% and at the end of 2018 amounted to about $30 billion. About a quarter of consumer goods are imported," Ablay Myrzakhmetov said.
On the Council’s platform, the business community together with the authorized government agencies and organizations will focus on such issues as the development of local content and system of regulated procurement, customs, and tariff policy, technical regulation, development of raw materials base, infrastructure development, improving the effectiveness of government support measures, the development of industrial cooperation and subcontracting and other issues related to the processing industry development.
As of today, about 20 investment projects on such goods are being developed together with business representatives:
- chipboard/fiberboard for furniture,
- Stop valves,
- Plastic products,
- Meat,
- Chemicals, etc.
These projects will soon be presented at a meeting of the established Interagency Commission on Import Substitution under the chairmanship of the Prime Minister of the Republic of Kazakhstan Askar Mamin. The projects will be implemented through the development of individual roadmaps, which will indicate the necessary support measures (e.g. preferential financing, off-take contracts of the Samruk-Kazyna Fund, etc.), business obligations, responsible government agencies, terms, etc.
Summing up the briefing, the speakers said that the Council on Import Substitution will be a logical continuation of the joint work of the Government and business, and will create a system to support business initiatives from preferential financing to expanding markets for each project.
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