EconomicsPresident's Address

Analysis of state holdings and national companies performance to be made in Kazakhstan

Analysis of the performance of state holdings and national companies will be conducted in Kazakhstan, President Kassym-Jomart Tokayev said delivering his State-of-the-Nation Address at the joint session of the Parliament chambers, reports. “In order to reduce the unjustified presence of the state in the economy, I decided to introduce a moratorium in quasi-state companies. We need to understand the real contribution of the National Welfare Fund to the growth of the people's welfare over the past 14 years. The Government and the Accounts Committee will conduct an analysis within three months of the effectiveness of state holdings and national companies,” Tokayev instructed.

According to him, quasi-state companies often compete with each other on the same field. The President cited the housing sector as an example, where seven state operators work simultaneously at the central level.

"The number of state-owned companies can and should be reduced. At the same time, we should carefully approach the activities of state-owned companies operating in strategic sectors. State control over them should be maintained. Otherwise, instead of state-owned monopolists, we will get private monopolists with all the ensuing consequences," he went on to say.

Tokayev also noted that the Government needs to systematically and substantively address pricing issues.

"This applies to goods, services of natural monopolists. It is no secret that prices in our country are high. From food and clothing to the cost of various services. For example, flights of the main air carrier on the most popular routes are much more expensive, at times up to 30%, than in Europe, why?! What justifies the relatively high cost of services at our airports? Why is the cost of jet fuel for foreign carriers at Kazakhstan airports higher than for domestic? " - the President queried.

According to him, as a result, the aviation industry of Kazakhstan is losing its international competitiveness. The transit potential of the country is decreasing.

“At the connivance of the relevant department, an artificial shortage of train tickets was created. It is urgent to put things in order in these areas. Our goal is to ensure full development of market institutions and mechanisms with the stabilizing role of the state. At the same time, we should not forget about the economy of simple things. It is the priority area of our work,” - concluded Tokayev.

Aidana Demesinova
13:34,2 September 2019

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