The President evaluated the performance of the Government and regional leaders.

As previously clarified in Akorda, the meeting summarized the results of the socio-economic development of the country for 2024 and outlined the key tasks for the government in the upcoming period. Reports were presented by Prime Minister Olzhas Bektenov, Chairman of the National Bank Timur Suleimenov, and akims from several regions. The event commenced at 10:50.

Kassym-Jomart Tokayev:

"The extended government meeting is taking place against the backdrop of radical changes in the world. Global processes may have a significant impact on the economic situation in our country.

It should also be noted that the transition to a new technological paradigm based on total digitalization will lead to the creation of qualitatively new realities in the world. We must be prepared for this. Successful adaptation to new realities will be a defining factor for the competitiveness and sustainable progress of Kazakhstan.

The effectiveness of the government and akims will primarily be judged by the results of economic development and the improvement of the quality of life for citizens. Today we have gathered to summarize the past year and formulate the pressing tasks that must be addressed in the shortest possible time."

According to the agenda, reports will be presented by Prime Minister Olzhas Bektenov, Deputy Prime Minister Serik Zhumangarin, National Bank Chairman Timur Suleimenov, Chairman of the Board of JSC "Samruk-Kazyna" Nurlan Zhakupov, Akim of Astana Zhenis Kasymbek, Akim of Shymkent Gabit Syzdykbekov, and Akim of Kyzylorda Region Nurlybek Naliбаев.

Olzhas Bektenov:

"The government continues to implement the strategic tasks outlined in your election platform, messages, and other program documents. Undoubtedly, our priorities have been and remain ensuring quality economic growth and improving the welfare of citizens. In close collaboration with the legislative body, a number of important laws aimed at further development of our country have been developed and adopted...

Last year, the economy grew by 4.8%. High dynamics were achieved in agriculture – 13.7%, construction – 13.1%, trade – 9.1%, and transport – 8.5%. The volume of manufacturing industry increased by 5.9%. The agricultural sector and processing recorded the most dynamic growth in the last 10 years. At the same time, oil production decreased by 2 million 400 thousand tons, negatively impacting GDP growth rates. This was largely due to the country's commitments under OPEC+ and major repairs at large fields...

By region, the highest economic growth for the past year was demonstrated by the North Kazakhstan, Karaganda, Turkestan, Kyzylorda regions, and the cities of Astana and Shymkent. Low dynamics in key indicators were observed in the Ulytau, Atyrau, West Kazakhstan, and Zhambyl regions...

In the near future, we will conclude the necessary agreements for the construction of the first nuclear power plant in the Almaty region. An analysis of regions for determining possible sites for the second and third nuclear power plants is also nearing completion."

Kassym-Jomart Tokayev:

"Last year, indeed, there were difficulties. The development of the economy was influenced by many negative factors. However, we kept the situation under control and did not allow deterioration. Overall, we can say that the results are not bad; the past year ended with positive indicators, but we cannot rest on our laurels. There are still many problems that need to be addressed. Experts and citizens are aware of this.

First and foremost, the work on diversifying the economy has not been fully completed. The economy is still very dependent on the National Fund's resources. It is essential to note that the National Fund, part of the economy, and the investment activity of businesses are at an insufficient level. These shortcomings must be addressed this year. The government must take concrete measures."

Serik Zhumangarin:

"Today, out of more than 2.3 million registered taxpayers, only 137,700 business entities are VAT payers. This is 6% of the total. Of these, only 88,000, or 4% of all taxpayers, actually pay VAT. One reason is the high threshold for VAT registration, which currently stands at 78 million tenge.

We propose reducing the VAT threshold to 15 million tenge. Currently, 88% of SMEs operate within this limit. Therefore, we believe this will not significantly impact the segment. In OECD countries, the threshold is even lower, and in some leading economies, it is even zero.

As a result, VAT will finally become a tax for offsetting, and about 300,000 new taxpayers will emerge."

Kassym-Jomart Tokayev on tax reform:

"It is necessary to explain to society and the population, in particular, about the social tax. How will we implement (tax administration)? You yourself say that you will compensate... All this needs to be discussed and thought through on how to implement this reform. Overall, reform is necessary, and I support this reform. However, it is essential to discuss and study it. Therefore, the draft of the new Tax Code is currently under consideration in the Mazhilis.

In 2025, attention must first be paid to the Tax and Budget Codes. Overall, I confirm that reform is needed. But now we face the task of reducing transfers from the National Fund and strengthening its savings function. Accumulated funds can be directed towards financing major infrastructure projects – this is a priority. Thus, we will enhance the state's function for development, but I still believe that we need to think very carefully about the social tax."

Kassym-Jomart Tokayev on the National Bank's work:

The National Bank operates within its mandate. This is clear. Work is ongoing in the current mode. However, questions remain. First and foremost, people are concerned about the volatility of the national currency. Experts expect pressure on the tenge exchange rate due to the strengthening of the US dollar.

Ensuring currency stability and, in general, curbing inflation is extremely important work. If I may say so, it is the main task that must be carried out in close cooperation with the government. Previous assertions that we are independent and self-sufficient no longer work because the situation is unusual."

Kassym-Jomart Tokayev on Astana:

"Significant work is required to address pressing issues in the capital and improve the city's infrastructure. We are all witnesses to this. Overall, the city's akim works cohesively and has experience. At the same time, the issue of traffic jams is pressing for the capital – urgent measures and solutions must be adopted in this direction.

Another important task is to build processing enterprises. This applies to all major cities and regions.

The quality of housing construction, the construction of underground utilities, and repair work must be under special control."

Zhenis Kasymbek on LRT:

"In December 2024, a comprehensive program for the development of the transport system was approved. Against the backdrop of increasing vehicle traffic in the capital, the focus has been placed on developing public transport, increasing road capacity, constructing new bridges, and improving the operation of parking spaces.

More than 1,600 buses operate daily on urban routes. Over two years, the public transport fleet in the capital has been updated by 45%.

Thanks to your support, the LRT project is nearing completion. Construction work will be fully completed by summer. In September, the first trains will arrive, after which active testing will begin. The city continues to work actively to shape a modern, comfortable, and ecological appearance."

At 12:21, the concluding remarks of the president began.

Kassym-Jomart Tokayev:

"Despite the difficult situation in the world, positive results have been achieved in our country. The economy is growing, but unresolved problems still abound.

Issues related to tariff conflicts and sanctions confrontations are emerging as the new reality of the global economy. These trends carry severe consequences.

The climate agenda will undergo significant changes, necessitating a revision of approaches to developing green energy. On the one hand, this will support demand for traditional energy resources. On the other, it will lead to price destabilization for oil, gas, and coal.

A shift towards broad use of cryptocurrencies and other digital assets has begun to emerge in the financial sector. The development of artificial intelligence is becoming a fundamental factor, and competition between leading technological powers is intensifying in this area. Under such conditions, we need a clear strategy of actions aimed at overcoming the serious challenges of the new era."