Economic News in Brief

According to Karim Kokrekbayev, Akim (Governor) of the Zhambyl region, meat production is expected increase to 82,000 tonnes – by 40 percent – in the region by 2020. “Thanks to measures we have undertaken, meat production will be increased to 82,000 tonnes … milk production will grow to 325,000 tonnes,” he said. The number of cattle of all types are also expected to increase. However, the provision of milk and dairy products in the region remains low. A cheese factory is currently on trial in the region, producing 25 tonnes of milk annually. The region’s meat imports reached $0.3 million and dairy product imports $5.3 million in the first seven months of this year.

Nearly $5 billion is planned to be attracted to the chemical industry of the Zhambyl region through the State Programme of Accelerated Industrial and Innovative Development (SPAIID), said Akim (Governor) of the region Karim Kokrekbayev at an Oct. 10 briefing. “I am confident that the chemical industry will become a driving force of the regional economy in the future. Thanks to the state programme and state support, over 900 billion [US$4.95 billion] tenge of investments are planned to be attracted to the chemical industry of the Zhambyl region by 2020,” he said. As a result, the production output of the chemical industry in the region is expected to reach 324 billion tenge [US$1.78 billion] by 2020, six times more than in 2013, increasing tax revenues to the regional budget from the chemical industry by 3.2 times, the Akim said.

“Modernisation of Atyrau’s oil-processing plant will be completed by the end of 2016,” Akim (Governor) of Atyrau region Baktykozha Izmukhambetov said at an Oct. 17 Central Communications Service (CCS) briefing. “As you know, all the three [refining] plants [in Kazakhstan] are under reconstruction. The reconstruction of the oil-processing plant in Atyrau comprises two stages. The first stage will be finished this year. The project envisages the issue of aromatic hydrocarbons, benzol, paraxylene. The second stage will be completed by the end of 2016,” Izmukhambetov said.

Vice Minister of Health and Social Development Svetlana Zhakupova forecast pension increases at a recent Central Communications Service briefing (CCS). “We have developed a concept for modernising the pension system, which provides for an increase of pension payments. Primarily, it concerns people who retired in the 1990s. We are changing the mechanism for establishing the basic pension, so length of service in the Soviet and post-Soviet eras and accumulations in the pension system from 1998 will be taken into account. Therefore, we expect pensions to grow. Today if they get 10,450 tenge [US$57.56], later they will get over 20,000 [US$110.16]. We expect pensions to increase in 2017,” Zhakupova said. According to her, they are also considering the issue of changing the structure of the living wage, which will also affect pension payments.

“As a result of improved procedures and reduced job costs, Zhilstroisberbank plans to reduce service fees by 20 percent next year,” Aibatyr Zhumagulov, chairman of the board of Zhilstroisberbank Kazakhstan, told an Oct. 14 media briefing. “The bank has reached an agreement on reducing tariffs for notarising real estate purchase and sale agreements from 22,000 to 7,000 tenge [US$121.18 to US$38.55]. The service fees for evaluating companies working within the Affordable Housing 2020 Programme were reduced from 5,000 to 2,540 tenge [US$27.54 to US$13.99]. We are now negotiating the reduction of the service fees of insurance companies,” he told.

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