“Today, the defense industry is represented by 124 companies, but not all of them are genuine manufacturers. Some are focused solely on obtaining funds through government defense contracts without producing any products,” he stated during the III conference of the Association of Defense Industry Enterprises held in Almaty.
The Minister of Defense believes that this issue can be addressed by establishing a commission comprised of the Ministry of Defense, the General Prosecutor's Office, the Financial Monitoring Agency of Kazakhstan, and the National Chamber of Entrepreneurs “Atameken,” which will examine companies that position themselves as manufacturers of military products. Zhaksylykov emphasized that even when acquiring technologies from abroad, further localization of production must occur in Kazakhstan.
He also mentioned the necessity of creating a cluster based on the Semipalatinsk Tank Repair Plant.
“It should specialize not only in the production of armored vehicles but also in the repair of weapons, artillery systems, and powertrain transmissions. All of this needs to be done,” the minister said.
During the conference, manufacturers expressed the opinion that annual contracts are insufficient for fulfilling high-tech orders. This is due to the fact that such orders require a large number of component supplies, and the current transportation issues lead to violations of contract terms.
In response, the Minister of Defense proposed considering extending contract durations to three years. Simultaneously, the Association of Defense Industry Enterprises and the Ministry of Defense should consolidate efforts to develop domestic production and identify instances of fraudulent entrepreneurship, hidden imports, and unjustified price increases, he believes.
As a result of the conference, the Ministry of Defense and the Association of Defense Industry Enterprises decided to create a joint commission to develop a unified strategic platform for the growth of the domestic defense industry. Zhaksylykov noted that all issues raised by association members are relevant. According to him, a series of directives will be issued, particularly regarding the regulation of price dumping and the extension of contract durations.
With the adoption of the presidential decree on February 13, 2025, “On Measures for Further Improvement of the State Governance System of the Republic of Kazakhstan,” the tasks of forming the state defense order were transferred to the Ministry of Defense.