The Government Hour focused on the further development of the industrial potential of Kazakhstan took place under the chair of Vice-Speaker of the Senate Nurlan Abdirov. The meeting discussed the legislative regulation of the industrial policy, challenges of the industry and ways to address them.
“In its industrial policy, Kazakhstan must keep a non-alternative course for the development of non-resource sectors of the economy, which are also less dependent on the state of world markets. Hence, the legal regulation of industrial policy should focus on the development of its manufacturing sector and diversification of sources of economic growth,” Deputy Chairman of the Senate Nurlan Abdirov said.
After hearing the report by Minister of Industry and Infrastructure Development Beibut Atamkulov, senators also voiced certain recommendations that would help to stimulate the development of the industry. Notably, these recommendations became the result of extensive preparatory work performed by senators in preparation for this Government Hour.
One of the senators’ proposals is the amendment of the Law “On Public Procurement”. Deputies propose to eliminate the possibility of supplying domestic products by enterprises that are not its manufacturers. They also proposed to define legislatively the goal and objectives of the industrial policy, namely the transition from mineral resource to manufacturing policy, as well as the provision of conditions for the production of export-oriented and high technology products. Another proposal is to grant investors with different levels of tax exemptions. This means that the more a company invests in production, the larger will be the period for which it can receive benefits. The principle proposed by senators, which states that companies with a high level of redistribution of production should always be given priority in the development of National Projects, shall also motivate manufacturers for advanced processing of their products. Those companies operating in special economic and industrial zones should also become more responsible. Senators believe that while receiving support from the state, companies should assume more obligations in terms of their production capacity, exports, investments, the share of local content, as well as the level of redistribution.
At the hearings, deputies also recommended to audit non-functioning production facilities and draw up a roadmap for restarting the most competitive ones. New financial instruments in the form of syndicated loans and leasing were proposed with a view to expanding the scope of lending to medium and large entities of the manufacturing sector.
The remarkable thing is that, as part of the preparation for the Government Hour, deputies of the Senate Committee on Economic Policy, Innovative Development and Entrepreneurship held a series of meetings with the officials of different ministries and departments, “Atameken” Chamber, and with the industry experts, where they discussed about 100 questions.
The recommendations drawn up based on the results of the Government Hour will be submitted to the Cabinet of Ministers.