KAZAKHSTAN

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 Statement by the Alternate Governor for the Republic of Kazakhstan
at the EBRD Annual Meeting 2023

On behalf of the delegation of the Republic of Kazakhstan, I would like to thank the Government
of the Republic of Uzbekistan and the authorities of the city of Samarkand for the hospitality they
have shown and the wonderful organisation of the Thirty-second Annual Meeting of the European
Bank for Reconstruction and Development.

Last year Kazakhstan and the EBRD jointly celebrated the 30th anniversary of their partnership.

Throughout the years of our cooperation, more than 300 projects worth in excess of US$ 10 billion
have been successfully implemented in Kazakhstan with the Bank’s support in various sectors of
the economy. These figures are very impressive and demonstrate the successful progress of our
joint work.

We highly value our partnership and intend to maintain a long-term, mutually beneficial
relationship with the EBRD.

Economic situation in the Republic of Kazakhstan

Despite the global geopolitical and economic situation, Kazakhstan's economy was able to adapt
to external conditions, posting a 3.1% rise in GDP in 2022 compared to 2021 (January-March
2023 – up by 4.9% compared to January-March 2022). This year we expect to maintain positive
GDP growth rates of 4%.

Goods output increased by 3.2% while services rose by 2.5%.

The short-term economic indicator stood at 103.5%. This covers growth trends in six key sectors
(production, agriculture, construction, trade, transport and communications).

Steady growth is continuing in the manufacturing industries.

As part of the “New Kazakhstan” concept announced in 2022 by the President of the Republic of
Kazakhstan Kassym-Jomart Tokayev, we have been actively working on reforms designed to
strengthen the legislative branch of power, and deliver high-quality economic modernisation by
boosting fair competition, protecting private property, promoting antitrust law, and curbing any
excessive public-sector activity in the economy.

At the same time, one of our main goals remains to increase the country’s attractiveness as an
investment destination.

We welcomed the proposal to hold an Investment Outlook Session on Kazakhstan as part of the
EBRD Annual Meeting. I am confident that the session will be held at a high level, as well as
allowing us to demonstrate our country’s economic capabilities, and discuss questions of both
financial cooperation and attracting foreign investment.

Our President has remarked on more than one occasion that an “open door” foreign investment
policy remains a strategic priority for Kazakhstan.

The most conducive conditions for doing business have been created to support this.

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Last year, for instance, we adopted an investment policy concept through to 2026. It provides a set
of measures designed to gear the structure of investments towards the competitive production of
high-value-added goods.

Kazakhstan seeks to maintain its leading position among the Central Asian states in terms of
inward foreign investment.

At the end of 2022, gross inward foreign direct investment in Kazakhstan amounted to
US$ 28 billion, a record figure for the last 10 years (in 2012 FDI reached US$ 28.9 billion).

As a result, Kazakhstan has concluded more than 50 agreements with other countries to protect
and promote investment.

Major investors are being offered the opportunity to sign investment agreements which ensure
legislative stability for 25 years so that investment projects can be delivered in priority sectors.
Preferential taxation and grants in-kind are also available for those sectors.

Our tax rates are among the lowest in the world. Corporate income tax is 20% and VAT is only
12%.

The country has 13 special economic zones supported by ready-to-use infrastructure and a wide
range of investment options.

There are also 36 industrial zones with turnkey infrastructure on hand.

There is an additional investor support mechanism for subsidising loans to foreign buyers and
guaranteeing export transactions.

A visa-free regime operates for investors from 54 countries, including Japan, the USA, the United
Kingdom, Germany and others.

And finally, a ready-made manufactured products market of 1.5 billion consumers is also available
in the form of China, and the countries of the Eurasian Economic Union and Central Asia.

As we have seen, the current situation in the world has significantly changed the global economic
backdrop.

The Kazakhstan government is endeavouring to guarantee macroeconomic stability and prevent

unjustified price increases.

We are also taking steps to improve fiscal policy. A new concept for public finance management
has been adopted for use until 2030. The contents of the concept will form the basis of the new
Fiscal Code.

A new Tax Code will also be developed with the aim of revamping fiscal regulation.

While focusing on economic development, we need to take into account our international
commitments to decarbonise the economy.

In recent years, we have made significant progress towards reducing the carbon intensity of our
economy and expanding the use of renewable energy sources. At the same time, we realise that
there is still major work ahead.

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In February this year, a strategy for achieving carbon neutrality in Kazakhstan by 2060 was
approved.

More widely, the head of state’s approval of the strategy for achieving carbon neutrality in
Kazakhstan by 2060 is timely, and confirms the long-term and consistent nature of our intentions
and efforts.

To attract investment and create new professions, we intend to step up our cooperation with
international organisations and other countries so that we can exchange experiences and coordinate
efforts to achieve global objectives.

We recognise the importance of international cooperation in this regard. Participation in

international climate agreements and strengthening partnerships are paramount in terms of
developing and implementing effective joint measures.

I would like to conclude by emphasising that the achievement of our proposed objectives and the
implementation of our country’s main priorities will enable us to overcome current difficulties,
and to set ourselves on a course of sustainable, high-quality economic growth.

To successfully attain these goals, we need the support of international financial institutions, in
particular the EBRD.

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