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Funding has not been allocated – Meiram Pshembaev discusses the machinery development plan.

"We could establish several hundred, possibly even a thousand businesses in the regions," said the chairman of the Union of Machine Builders.
Funding has not been allocated – Meiram Pshembaev discusses the machinery development plan.

The implementation of the Comprehensive Plan for the Development of Machine Engineering has not received funding. This was announced at a government meeting by the Chairman of the Union of Machine Builders of Kazakhstan, Meyram Pshembayev, as reported by the correspondent of the business information center Kapital.kz.

He reminded that on November 7, 2023, the government approved the Comprehensive Plan for the Development of Machine Engineering for 2024-2028. The plan includes 79 activities across seven key areas.

“The targeted indicators set for increasing the physical volume index by 2.2 times and annually by at least 10%, production in monetary terms by 4.5 times: from 3 trillion tenge to 11 trillion tenge, export volume – by three times, labor productivity – by two times, investments – by 1.5 times will contribute to doubling the country's GDP by 2029,” he noted.

To implement the plan, funding is planned through the Industrial Development Fund in the amount of 600 billion tenge for the creation of new and modernization of existing enterprises, as well as through the “Damu” fund for 50 billion tenge.

“This 50 billion tenge, or 10 billion tenge annually (through the “Damu” fund - Ed.), will allow financing for SMEs by commercial banks for about 370 billion tenge. We could create several hundred, maybe even a thousand enterprises in the regions, which would boost economic activity in rural areas and mono-cities. Funds have been allocated for this, and work is underway to secure financing. We understand the current situation with funding, but I would like to point out that in 2024, funds from the republican budget for the above-mentioned goals have not been allocated. And for 2025, they are also not planned. We have high hopes tied to this financing,” he clarified.

Meyram Pshembayev also reminded that the head of state instructed to approve a national project for the modernization of the energy and utility sectors in his address.

“Considering the tight deadlines for developing the national project, we would like to request the provision of a comprehensive set of stimulating measures. This, first of all, includes complete information from the Ministry of Energy and the Ministry of Industry regarding the facilities planned for modernization and the needs for construction products, mandatory use of already produced products, and the implementation of the existing mechanism for concluding off-take contracts, as well as priority funding and subsidization from the Industrial Development Fund and the “Damu” fund for projects that have concluded off-take contracts as part of the national project,” suggested Meyram Pshembayev.