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President of Kazakhstan, Kassym-Jomart Tokayev, announced a major nationwide infrastructure programme and set out priorities for investment, energy security, technological development and economic reform in his State of the Nation Address, Kazakhstans Current Priorities in a New Historical Cycle, delivered on 28 October.
According to an official release, at the centre of the address was Peoples Construction, described by the President as the largest infrastructure project in Kazakhstans history. An Infrastructure Modernisation Plan will be supported by approximately 6.5 trillion tenge ($14.27 billion) from the National Fund by the end of 2029, of which 1.5 trillion tenge ($3.29 billion) is to be earmarked for social projects during 2026 and the first two months of 2027. Tokayev also proposed declaring 2027 the Year of Nationwide Large-Scale Construction. The programme will initially include around 70 healthcare facilities and 50 educational, sports and cultural facilities, alongside transport, housing, utilities and improved access to drinking water and gas. It is expected to create employment opportunities for hundreds of thousands of people. We must now direct this considerable potential towards modernising our infrastructure and improving the quality of life across every region of our country, Tokayev said. The President linked these plans to Kazakhstans economic performance. Citing International Monetary Fund projections, he said GDP was expected to approach USD 400 billion in 2026, with GDP per capita exceeding USD 19,000. Manufacturing now accounts for more than 14% of GDP, while the combined value of international reserves and National Fund assets exceeds USD 130 billion, the release stated. Energy security emerged as another priority. Tokayev set a goal of achieving a sustained electricity surplus by 2029 through new generation capacity, upgraded grids, cleaner coal generation and renewables. He said construction of the Balkhash nuclear power plant could begin as early as 2027 and called for a cooperation agreement to advance the Moyynkum nuclear project. He also proposed considering a strategic uranium reserve to secure long-term fuel supplies. On transport, he said the BakhtyAyagoz railway is due to open in 2027, adding 20 million tonnes of freight capacity between Kazakhstan and China. The AralCaspian corridor, under construction since August, is intended to shorten the Trans-Caspian route by approximately 1,000 kilometres and cut delivery times by up to three days. He also called for improved border crossings, road quality, freight digitalisation and aviation infrastructure, including a new airport in Astana. Kazakhstan must seize this historic opportunity to establish itself as a leading logistics hub in Eurasia, Tokayev stressed. To strengthen industrial diversification, Tokayev called for modern geological exploration, transparent mineral data and a national system for managing critical mineral reserves, including long-term financing and offtake agreements. He urged partnerships with developed countries to integrate Kazakhstan into global value chains and stressed that infrastructure investment should support domestic manufacturing. He also called for a better-coordinated investment attraction system and stronger legal safeguards for businesses. In Alatau City, a new Investment Court based on the English common law model is planned for commercial disputes, alongside a Civil Court for other matters under the special legal regime. Legislative amendments are due to be submitted by the end of January 2027. Digitalisation featured prominently in the address. Two supercomputers are already operational, with a third due before the end of 2026, while the fibre-optic link across the Caspian seabed has been completed. Tokayev called for practical use of artificial intelligence, digital employment rules by the end of 2026, regional pilots to help rural producers sell online, and wider use of asset tokenisation. Our goal is to build a truly peoples digital economy, he said. On economic policy, Tokayev prioritised reducing inflation, expanding long-term lending and strengthening capital markets. He called for targeted changes to the new Tax Code, discussion of a higher tax rate for substantial wealth and a new Civil Code by the end of 2027. He also proposed considering a three-year moratorium on inspections of micro and small businesses from January 2027, the release noted. Social measures included raising the monthly minimum wage from 85,000 to 110,000 tenge from 1 January 2027, expected to benefit 1.8 million people, and increasing pay for primary healthcare specialists by up to 40%. Tokayev also outlined plans for new perinatal centres and childrens hospitals, more inclusive education and better-targeted welfare. He urged stronger agricultural investment, more efficient water use and completion of a national water information system. Framing the address around Kazakhstans 35th anniversary of independence and its new Constitution, in force since July, Tokayev called for comprehensive public administration reform, with proposals due by 1 June 2027. He stressed national unity, the rule of law and accountable government as essential to building a Just, Strong, Clean, and Progressive Kazakhstan. The ultimate measure of a states progress and the principal beneficiaries of all reforms are our citizens, he said. (ANI)
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