Statement of the Prime Minister of the Republic of Kazakhstan B. Sagintayev in connection with the statements of the President of the Kyrgyz Republic A. Atambayev

On October 7 of this year, the President of the Kyrgyz Republic A. Atambayev has made a number of inappropriate and unfriendly statements concerning certain aspects of the social and economic development of Kazakhstan.

Confirming the commitment to the development of bilateral relations with the Kyrgyz Republic, I am sure that the irresponsible, provocative and false statements of the President of Kyrgyzstan made for purposes concerning elections should not damage the centuries-old ties of friendship and mutual assistance between our countries.

In this regard, I decided to immediately inform the Kyrgyz public about the real economic development of Kazakhstan.

During the years of independence, our economy has grown 20 times.

In 2012, Kazakhstan joined the 50 most competitive global economies.

A strong national business has been established in the country. Kazakhstan has ranked 35th in the Doing Business World Bank rating. Today, 1.3 million business entities produce ¼ of total national wealth.

Just over the last ten years, within the Industrial and Innovative Development State Program, more than one thousand new productions have been established, including the production of cars, locomotives, carriages, helicopters and much more. We have mastered the production of 500 new products, which were never manufactured in our country before.

Kazakhstan’s transport infrastructure is being extensively modernized. In 25 years, more than 10 thousand km of roads have been constructed and reconstructed. In the coming years, a road network stretching 8 thousand km will be additionally modernized.

We have fully completed the construction of the Kazakhstan section of the Transcontinental Highway "Western Europe-Western China" stretching 2800 km.

More than 2.5 thousand km of new railways have been built.

The infrastructure of the Aktau seaport has been comprehensively modernized, the new ferry port of Kuryk has been built. The total throughput of seaports in the Caspian Sea has been increased to 26 million tonnes. New airports and railway stations are put into operation annually.

During the years of independence, Kazakhstan has built 120 million square meters of housing, providing more than 1.1 million families of Kazakhs with apartments.

Just within the 8 months of 2017, as part of the Nurly Zher State Program, 6.9 million square meters of new housing were put into operation. Also, 18.3 thousand individual houses were constructed. More than 61 thousand Kazakhstani families have improved their living conditions.

Housing construction is actively developing. Just this year 10.1 million square meters of new housing will be commissioned.

The country is actively developing social infrastructure. Over 1300 new hospitals and polyclinics, 500 new kindergartens and 1400 schools have been built.

Regarding the "Bolashak" program initiated by the President of the Republic of Kazakhstan N. A. Nazarbayev, more than 12 500 young citizens of the country received education in 200 of the best world universities in 35 countries.

An average of 270 thousand new jobs are created every year.

Over the past 15 years, the average salaries and pensions in Kazakhstan have increased more than tenfold.

According to the official data of the International Association of Pension and Social Funds, the minimum and average pensions in Kazakhstan are higher than in Kyrgyzstan by 5 and 3 times, respectively.

The average life expectancy in our country has increased to 72.3 years.

As for the tariffs for services, I would like to note that at present a new model is being implemented in Kazakhstan aimed at updating and modernizing fixed assets, taking into account the balancing of the interests of natural monopolies entities and consumers. At the same time, it is obvious that the tariffs for electricity generated by hydroelectric power stations are lower than the tariffs for electricity received using fossil energy sources.

Implementing the strategic vision of the President of the Republic of Kazakhstan N. A. Nazarbayev, we created a new capital - Astana. Over 50 billion USD were invested in the development of the capital. Today the population of Astana has exceeded 1 million inhabitants.

This year Astana has for the first time in the entire CIS hosted the World EXPO-2017 "Energy of the Future". More than 115 states and 22 international organizations took part in it. In the duration of the exhibition, it was visited by about 4 million tourists.

Thanks to the economic strength of the state, stability, favorable investment climate, the largest transnational corporations work in all sectors of the economy of Kazakhstan. The total volume of foreign direct investment in the years of independence amounted to 265 billion USD.

In 2000, the National Fund of the Republic of Kazakhstan was established by the President of the country. To date, the total volume of the National Fund and the gold and foreign exchange reserves of Kazakhstan amounts to about 91 billion US dollars.

Sustainable economic development, progressive growth of the country's GDP, allows Kazakhstan to provide all kinds of assistance to partner countries.

The Republic of Kazakhstan pursues a consistent policy of strengthening fraternal and neighborly relations with the Kyrgyz Republic in the spirit of the Treaty on Eternal Friendship of April 8, 1997 and the Treaty on Allied Relations of December 25, 2003.

All these years, Kazakhstan has always been close to the Kyrgyz people, especially in difficult times, was sympathetic to the requests of the leadership of Kyrgyzstan, maximally assisted in resolving pressing social and economic problems and provided significant humanitarian assistance, including energy supplies, food and other socially important goods .

Within the framework of Kyrgyzstan's accession to the Eurasian Economic Union, the President of the Republic of Kazakhstan decided to provide technical aid in the amount of 100 million USD. As of today, the Agreement on the provision of technical aid has been ratified by the Parliament of the Republic of Kazakhstan.

More than 20 million USD has already been allocated for humanitarian assistance to Kyrgyzstan, two general schools in Bishkek and Osh have been built.

The volume of Kazakhstan investments in the economy of Kyrgyzstan amounted to 820 million USD. Thanks to them, thousands of Kyrgyz citizens are provided with jobs.

At the same time, the volume of investments could be more, but its growth is constrained by the unfavorable investment climate with regard to Kazakhstani entrepreneurs.

125 thousand labor migrants are registered and live in Kazakhstan. At the same time, they are fully provided with social and medical guarantees from our state.

Thanks to the position of the President of the Republic of Kazakhstan N. A. Nazarbayev, currently, the share of Kyrgyzstan in the distribution of revenues from import customs duties between the budgets of the member states of the EurAsEC is 1.9%. This has resulted in a sharp increase in revenues to the budget of the Kyrgyz Republic since joining the EurAsEC.

Income in 2016 amounted to 187.4 million USD, which exceeds Kyrgyzstan’s indicators from before joining the EurAsEC more than threefold.

In accordance with the Agreement between the Republic of Kazakhstan and the Kyrgyz Republic on the application of the procedure for regulating access to rail transport services, including the basics of tariff policy, the Kyrgyz Republic applies a unified railway tariff from January 10, 2017, which is 8 months earlier than stipulated in the Agreement on Accession of the Kyrgyz Republic. For the period of early application of the tariff, Kazakhstan's direct losses amounted to about 49 million USD, which is correspondingly a benefit for the economy of Kyrgyzstan.

It should be noted that the Kyrgyz side made commitments to bring the sanitary, veterinary and phytosanitary systems in line with the requirements of the EurAsEC, which have not yet been implemented. This carries risks for the Kazakhstani market and the integration association, as a whole. Despite this, the Kazakh side adopted a set of measures aimed at facilitating the access of Kyrgyz agricultural products to the Kazakh market and its transit through the territory of Kazakhstan.

The list of goods transported through Kazakhstan territory from Kyrgyzstan to Russia has been expanded considerably - up to 100 groups of goods.

Using Kazakhstani funds within the framework of technical aid amounting to 100 million USD, veterinary and phytosanitary-quarantine posts post will be equipped, quarantine and veterinary laboratories will be built and equipped, and also a center for registration and certification of veterinary drugs.

The customs agencies of the Republic of Kazakhstan record a sharp increase in imports of Chinese goods to the Kyrgyz Republic and a proportional increase in the import of similar goods from the Kyrgyz Republic to Kazakhstan, which is due to inefficient customs administration. Nevertheless, the Kazakh side does not apply any restrictive measures to Kyrgyz goods.

The assumed obligations to ensure the freedom of movement of Kyrgyz goods are fully ensured by Kazakhstan, despite the evidence of re-export of Chinese goods. The estimated losses of the EurAsEC member states amount to about 100 million USD, and Kazakhstan's losses on VAT are 155.8 million USD.

Moreover, we do not apply export customs duties on a number of goods important for Kyrgyzstan, despite the fact that we are aware of the facts of re-export of these goods from the territory of Kyrgyzstan (oil and oil products, scrap of ferrous and non-ferrous metals, animal skins and wool, etc.).

All of the above is a far from complete list of aspects of bilateral cooperation between our countries.

In conclusion, despite the repeated speculations of the President of Kyrgyzstan A. Atambayev, the Government of the Republic of Kazakhstan intends to further deepen and expand the Kazakh-Kyrgyz strategic partnership and cooperation.

www.primeminister.kz

Published: 09 October 2017

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