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Astana, Kazakhstan • 12 March, 2024 | 12:53
1 min read

Government Tasked with Establishing Institutional Environment for IPOs

By 2025, officials aim to reduce the state's share of GDP to 14%

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The government was instructed to establish an institutional environment conducive to effective privatization and IPOs, with the goal of ensuring transparency and achieving a 90% implementation rate for the Comprehensive Privatization Plan by the end of 2024, QazMonitor reports.

What happened: On March 12, Astana hosted a routine government meeting chaired by Prime Minister Olzhas Bektenov. The officials discussed a phased reduction of the state's share in the economy through comprehensive privatization and the transfer of non-essential functions to a competitive environment.

We must reduce the share of the state in the economy to 14% of GDP by the end of 2025. It is necessary to ensure the implementation of 90% of the Comprehensive Privatization Plan this year.

stressed Prime Minister.

What the Plan includes: As of December 6, 2022, the plan recommended transferring a comprehensive list of 675 items of state and quasi-public property into the competitive environment. This list comprises seven items of republican property, 250 items of municipal property, 262 items of national holdings and companies, and approximately 150 items of JSCs.

  • Privatization: The regional administrations and Samruk-Kazyna JSC have been tasked with executing privatization procedures, including IPOs, on time.

  • Transparency: The Ministry of National Economy has been mandated to ensure the adoption of relevant legislative amendments aimed at improving the efficiency of privatization processes and the management of state property.

"Tariff for Investment": The participants also discussed issues concerning infrastructure readiness for investment. The nationwide infrastructure system requires extensive renovation. In this context, in 2023, the government adopted the “Tariff for Investment” program, aiming to implement capital repairs of main and auxiliary power facilities for the 2024-2026 period as a short-term goal. Medium-term goals include:

  • Revising owners' obligations to include developing programs for modernization, reconstruction, and capacity expansion for facilities slated for further long-term operation;

  • Enabling financing options for thermal power plants during their implementation phase;

  • Establishing target indicators to reduce facility wear and tear by 10-15%, reducing the company's internal needs, aligning specific fuel consumption with design levels, and integrating the best available technology.

In general, work is being done to reduce wear and tear in power, heat, and water supply networks. The ministries and regional administrations need to ensure the proper implementation of the Tariff for Investment program. All measures regarding the repair and reconstruction of the infrastructure of housing and communal services should be realized and completed on time. Additionally, procurement should prioritize maximum support for domestic suppliers.

said Prime Minister.
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