ASTANA — Kassym-Jomart Tokayev shared insights on the nation’s economic trajectory, government performance and policy priorities in an interview with Ana Tili newspaper on Jan. 3.
“The government’s task is to ensure economic growth and improve the well-being of citizens. Overall, the Cabinet of Ministers is fulfilling this task. Over the past year, there have been notable achievements in diversifying the economy, developing the manufacturing sector, and modernizing infrastructure. However, there are also problematic areas,” said Tokayev, reflecting on the performance of the cabinet of ministers nearly a year after its formation.
Tokayev noted the need for ministers to take bolder actions to meet societal expectations.
“Society has high expectations of the government’s performance, and this is entirely justified and natural,” he said.
According to Tokayev, the well-being of citizens is the ultimate measure of the government’s success. He noted that economic achievements hold little value if they fail to enhance people’s standard of living, reducing them to mere abstractions.
He added that the upcoming expanded government meeting would summarize the year’s results and outline plans for achieving more ambitious economic growth.
Economic growth and currency challenges
Tokayev expressed dissatisfaction with the current 4% economic growth rate, saying it falls short of the country’s potential. “The government must find sources for higher economic growth,” he said.
On the fluctuating exchange rate of the tenge against the dollar, Tokayev noted external pressures but defended Kazakhstan’s free exchange rate policy.
“We moved away from the practice of artificially holding the exchange rate long ago. We operate under a regime of free-floating exchange rates determined by market factors. I believe it is unreasonable to deplete foreign exchange reserves just to sustain a strong tenge,” said Tokayev.
Tokayev added that the National Bank and government are reviewing options for a more controlled exchange rate. After a detailed analysis, a decision on whether to change the current approach will be made.
“The primary goal is to ensure the stability and efficiency of the economy, the dynamic development of the real sector, growth in labor productivity, and the creation of high-quality jobs,” said Tokayev.
“I will be frank: I assess the current performance of economic leaders as mediocre. There is too much rhetoric drawn from the vocabulary of international financial institutions and too little tangible action,” he added, highlighting the need for specialists with practical experience in regional and real-sector development.
Investments and entrepreneurship as a driving force
“The work to improve the investment and business climate, as well as to foster entrepreneurial initiatives, is an absolute priority for me,” said Tokayev.
He noted that entrepreneurship is a “driving force” behind the country’s economic growth, pointing to government initiatives such as decriminalizing certain economic offenses, providing subsidies, offering concessional lending, and implementing regulatory reforms to support small and medium-sized enterprises (SMEs).
“The share of SMEs in the economy has been steadily increasing, and this sector now provides jobs for 4.3 million people, nearly half of the employed population,” said Tokayev.
The government also focuses on developing large businesses, recognizing their social responsibility and commitment to long-term partnerships with local communities. Tokayev noted that many social issues are being effectively addressed through cooperation between the state and businesses.
“A new wave of entrepreneurs with progressive visions is emerging in Kazakhstan, implementing advanced technologies and competing at the global level,” he added.
Tokayev noted that it is promising to see foreign businesses opening representative offices in Kazakhstan, which supports the internationalization of the Kazakh market, strengthens healthy competition and diversifies the economy.
He also praised trends in foreign investment, citing a recent United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) report.
“[In 2024], Kazakhstan attracted $15.7 billion in foreign direct investment for new projects in 2024, marking an 88% increase compared to the previous year. This is the highest figure in the North and Central Asia region, with Kazakhstan accounting for nearly two-thirds (63%) of all foreign direct investment in the area,” said Tokayev.
Corruption and transparency
Acknowledging public concerns about corruption, Tokayev noted that the government remains committed to combating it.
“A systematic fight against corruption is absolutely essential, and there should be no doubt about our commitment to this effort. The government is working not only to detect corruption offenses but also to prevent risks in this area,” said Tokayev, emphasizing adherence to international standards such as those set by the Organization for Economic Cooperation and Development (OECD).
