“Kazakhstan should flip into one massive building website,” President Kassym-Jomart Tokayev proclaimed in his October 28 nationwide handle, proposing that the federal government dip into the Nationwide Fund, to the tune of 6.5 trillion tenge (roughly $14.4 billion on the present trade price) to fund initiatives by way of 2029.
That represents greater than 21 % of the Nationwide Fund, a sovereign wealth fund created in 2000 and equipped by tax revenues from oil and fuel corporations. RFE/RL reported that the fund at the moment holds round $66.7 billion. Tokayev’s new ambition scraps a earlier purpose, said in 2022 within the wake of the Qandy Qantar occasions as a part of his “Truthful Kazakhstan” pitch, to extend the Nationwide Fund’s belongings to $100 billion by 2030.
From 2026 by way of the primary two months of 2027, Tokayev stated in his latest speech, 1.5 trillion tenge ($3.3 billion) could be allotted for social initiatives.
“I’m assured that nobody will object if we name this initiative a ‘Folks’s Building Undertaking,’” Tokayev stated. In his subsequent remarks, he wandered by way of a smorgasbord of initiatives, mentioning a handful of particular efforts already underway, and spoke extra typically about an enormous vary of ambitions.
“Explicit focus needs to be positioned on creating logistics infrastructure,” he stated. Right here Tokayev spoke at size in regards to the significance of logistics – from roads to rail to air transport – in furthering Kazakhstan’s growth.
Tokayev talked about the Bakhty-Ayagoz rail line, which runs from Ayagoz in jap Kazakhstan to the Chinese language border and is predicted to be accomplished by the tip of 2027. He famous the beginning of building in August of the the Aral-Caspian Freeway, which “will shorten the route alongside the Trans-Caspian Hall by roughly 1,000 kilometers, decreasing cargo supply time to 3 days.”
Tokayev took time to place particular emphasis on the standard of roads – a perennial grievance in Kazakhstan – and criticize “government our bodies on the heart and regionally” who’ve handled the difficulty like a soccer.
“They kicked the difficulty round and did every part potential to drown the issue in an impassable swamp,” Tokayev, who has been president of Kazakhstan since 2019, stated.
After discussing the significance of creating air corridors – “large income are actually flying previous our nation” – Tokayev shifted to power. He said the ambition for Kazakhstan to realize a “sustainable power surplus” by 2029, on the again of a full vary of power sources, from “clear coal” to renewables like photo voltaic. Nuclear energy, he stated, is of “elementary significance,” praising because the “right resolution” the approval of a referendum on the subject in 2024. That referendum occurred underneath heavy authorities stress on critics of nuclear energy.
Intently associated is the new matter of vital minerals. On that, Tokayev cautioned that “new companies shouldn’t create obstacles for current companies within the native space.” He particularly referenced Qarmet, which till 2023 was often called ArcelorMittal Temirtau. That 12 months it was acquired by the the Qazaqstan Funding Company. Tokayev obliqued referenced comparable manufacturing amenities to these operated by Qarmet as being deliberate in three different areas with the assistance of presumably overseas buyers. “It’s apparent that the advantages of such inappropriate selections are questionable,” he stated, with out clarifying.
“It’s apparent that the function of the federal government on this matter must be considerably strengthened.”
That will elevate crimson flags for potential buyers, because it suggests a heavy authorities hand in managing the pathways investments take. A 2025 report from the U.S. Division of State on Kazakhstan’s funding local weather famous “vital progress,” but additionally pointed to ongoing restrictions on overseas possession in sure sectors – notably “a 20 % ceiling on overseas possession of media retailers and a 49 % restrict on home and worldwide air transportation providers” – whereas additionally stating that “overseas corporations generally expertise difficulties with licensing, taxation, and authorized disputes because of bureaucratic hurdles and inconsistent regulatory enforcement.”
Later in his speech, Tokayev pontificated on the need of attracting international and home corporations, as soon as once more criticizing “particular person departments and people” for taking “chaotic and uncoordinated” actions. “Due to this fact, funding coverage administration needs to be concentrated in a single heart,” Tokayev stated. Centralization has its advantages, however it additionally concentrates each wealth and danger.
The speech went on to the touch on topics as diverse as tax coverage and training, ending with orders to reform the general public administration system. “Civil servants should function fashions of competence,” Tokayev stated. “Sadly, we’re not seeing this but.”
