Kazakhstan Local Politics - The Times Of Central Asia

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AI Analyst to Help Kazakh Businesses Find Optimal Sales Locations

Kazakhstan’s Ministry of Finance is piloting a digital platform that uses AI and big data to help entrepreneurs identify the most profitable locations for selling their products. Deputy Finance Minister Aset Turysov announced the initiative during a recent briefing. The new AI-driven tool is integrated into the Ministry’s “Digital Map of Public Finances.” It utilizes electronic invoice data, machine learning algorithms, and commercial activity analytics to generate real-time maps of high-demand areas, aimed specifically at small and medium-sized businesses. “The Digital Map includes an AI analyst that processes receipts to identify where and which goods are in highest demand. We are currently testing this feature and plan to make it accessible through digital platforms, such as personal taxpayer accounts,” Turysov said. “If a business owner is unsure where to sell their products, the system will suggest the most advantageous locations.” AI to Support Targeted Subsidies and Smarter Investment The platform is designed not only to boost private sector efficiency but also to optimize state support programs. The AI tool will assist in allocating subsidies and issuing preferential loans by identifying promising business locations. This data-driven approach is expected to enhance investment outcomes and lower the risk of loan defaults. By discouraging over-concentration of businesses in particular sectors or regions, the system promotes more balanced economic development across the country. “For example, if someone wants to open a coffee shop, AI can flag areas where there’s already saturation and recommend neighborhoods where such services are lacking,” said a ministry representative. “This helps entrepreneurs allocate resources more effectively and avoid unprofitable locations.” Customs and Compliance Applications Artificial intelligence will also be implemented at customs checkpoints. In the initial phase, AI systems will match customs declarations with actual images of cargo, automatically detecting inconsistencies. This feature is currently in pilot testing. Parallel to this, the State Revenue Committee is expanding its use of the Digital Map project to gather data on company operations, cash register usage, and commodity flows. “For instance, 260,000 cash registers reported only one receipt over the course of a year, highlighting poor cash discipline. We will be sending notifications to those entities, urging them to increase operational transparency,” Turysov stated. Toward Full Fiscal Visibility Looking ahead, the system will integrate additional data sources, including corporate expenses, to provide a comprehensive view of income and expenditures by region. This will enable dynamic price and commodity flow analysis, supporting more accurate budget planning powered by AI. Turysov also noted that an independent IT audit conducted in 2024 led to a significant digital overhaul of the State Revenue Committee. The number of internal platforms was reduced from 14 to 5 key systems: Smart Data Finance (SDF), the Integrated Tax Administration System (ISNA), SUR, ESF, and Keden. “The Smart Data Finance system is now the core of our digital transformation. It consolidates data from 74 sources, automates tax processes, reduces paperwork, and forecasts revenues using AI,” Turysov said. Previously, The Times of Central Asia reported that the Ministry of Finance will begin blocking...

Employment

Tokayev Proposes Employing Top Foreign Graduates in Kazakhstan

President Kassym-Jomart Tokayev has proposed launching a program to employ the most talented foreign graduates of Kazakh universities, allowing them to begin their professional careers within the country. He announced the initiative during the Strategic Partners Forum, Kazakhstan - Territory of Academic Education. According to Tokayev, over 31,000 foreign students are currently studying at Kazakh universities, a national record. The government aims to increase this figure to 100,000 by 2029 through visa liberalization and improved learning conditions. The employment program will enable top-performing international graduates to stay in Kazakhstan, contributing to the national economy. Simultaneously, the country plans to expand the number of foreign university branches in Kazakhstan, with a particular focus on technical disciplines. “The opening of branches of foreign universities is fully in line with our goal of developing engineering and IT education,” Tokayev said. Kazakhstan currently hosts three Lu Ban workshops, which serve as centers for applied engineering training. Special emphasis is being placed on preparing skilled personnel for the nuclear energy sector. “Our task is to ensure a direct link between education and science and the real sector of the economy. There are already successful examples: the partnership between Kozybayev University and the University of Arizona has led to the development of a technology to convert sulfur into innovative polymers. This is a vital project for our country, which has significant sulfur reserves. It will spur growth in the chemical industry and contribute to solving environmental challenges,” Tokayev noted. Since 2019, Kazakhstan has tripled its investment in education and science. Five Kazakh universities have been included in the Times Higher Education global rankings, and higher education institutions now enjoy greater autonomy. Tokayev emphasized that investment in education is an investment in Kazakhstan’s future. He said the country sees the demographic potential of Central Asia and neighboring regions as an opportunity to grow its higher education sector and attract international students. “Kazakhstan has set itself the ambitious goal of becoming part of the global knowledge market. To this end, we have partnered with 40 leading universities worldwide and opened 33 foreign university branches. Many of these institutions offer courses in English, Russian, and Chinese. Multilingualism is the key to openness and competitiveness for both universities and nations,” he said. To help foreign students better understand local culture, all foreign university branches are required to offer mandatory courses in the Kazakh language and the history of Kazakhstan. Tokayev also named digital state development and the integration of artificial intelligence (AI) technologies among the country's top priorities. He noted that by 2030, AI is projected to contribute over $15 trillion to global GDP, and Kazakhstan intends to play an active role in this transformation. “Since the beginning of the year, we have launched the AI-Sana program, completed by more than 540,000 students. Courses on artificial intelligence have become mandatory in all schools and universities. An AI university is currently in development,” Tokayev said. He cited agreements reached with OpenAI during his September visit to the United States, under which...

Business

TikTok to Boost Support for Kazakhstani Entrepreneurs

Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin, met with Sergey Sokolov, Director of Government Relations and Corporate Affairs for TikTok in Russia, Eastern Europe, Central Asia, and Mongolia, to discuss the platform’s tools for promoting local businesses. During the meeting, TikTok representatives presented findings from a joint study conducted with the Atameken National Chamber of Entrepreneurs on the platform’s impact on entrepreneurship in Kazakhstan. The survey included over 300 micro and small business owners from 20 regions across the country. According to Raimbek Batalov, Chairman of Atameken, the partnership with TikTok is already producing tangible results. As part of the “One Village, One Product” initiative, entrepreneurs have received training on using digital tools to market their products and grow their sales. “Among companies that post content weekly, one in eight earns more than half of its revenue through the platform. Overall, 63% of businesses report that at least 5% of their annual income is directly tied to TikTok,” Batalov said. In collaboration with the state-backed Damu Fund, plans are underway to expand training programs on TikTok’s digital tools. Batalov noted that the integration of digital solutions remains a key area for the development of small businesses in Kazakhstan. Sergey Sokolov described Kazakhstan as one of the region’s fastest-growing markets and emphasized the platform’s untapped potential in advancing digital entrepreneurship. “We are ready to collaborate with Atameken and state authorities to elevate digital business tools to a new level,” he said. The study highlighted that companies in the creative and service sectors, including hospitality, entertainment, beauty, and wellness, have experienced the strongest results from their TikTok presence. Educational and tourism-related content also shows high growth potential, with Kazakhstani teachers and cultural projects attracting millions of views. Previously, Kazakh officials and TikTok representatives explored opportunities to promote Kazakhstan’s tourism potential to international audiences via the platform.

Poverty

Poverty in Central Asia: Who Is Living and Who Is Just Surviving

A new analysis by Ranking.kz reveals that Kazakhstan currently has the most favorable poverty indicators among Central Asian countries, while Tajikistan records the highest levels of deprivation. The findings also reflect significant shifts in global poverty estimates following a revision of the World Bank’s methodology. According to Our World in Data, by 2024, the global number of people living in extreme poverty had risen to 817 million, an increase of 125 million compared to previous figures. However, this jump does not signal worsening global conditions. Instead, it stems from a change in measurement criteria. In June 2024, the World Bank raised the international poverty line from $2.15 to $3 per day in purchasing power parity (PPP), based on 2021 prices. This methodological update expanded the scope of people counted as poor, even as real incomes among the poorest rose by approximately 16%. Sub-Saharan Africa continues to bear the brunt of global poverty. Of the 30 countries with the highest poverty rates, 24 are located on the continent. In Central Asia, Tajikistan ranks as the region’s poorest nation, with 61.3% of its population living on less than $3 per day. In contrast, the poverty rate stands at just 2.74% in Kyrgyzstan, 2.72% in Uzbekistan, and 1.93% in Armenia. Kazakhstan reports the region’s lowest rate of extreme poverty; just 0.04% of the population lives below the international threshold. Data for Turkmenistan is not available. According to Kazakhstan’s National Statistics Bureau, the share of citizens earning less than the cost of the basic food basket declined from 0.2% in 2023 to 0.1% in 2024. For the first time, the gap between urban and rural poverty disappeared; previously, rural areas had higher rates. In absolute terms, 16,500 people lived below the food minimum in the first quarter of 2025. The proportion of the population earning less than the national subsistence minimum also decreased, falling from 5.2% in 2023 to 5% in 2024. The breakdown shows 3.8% in cities and 6.9% in villages. The total number of people below the subsistence minimum dropped to 1 million. As of early 2025, the figure had improved further to 4.5%, with the minimum raised to 52,500 tenge (approximately $98) per capita. In terms of daily consumption, Kazakhstani citizens spent an average of $7 per day in 2024. Based on World Bank data, the international dollar was equivalent to 160.93 tenge, reflecting the amount needed in Kazakhstan to purchase a comparable basket of goods and services to that of $1 in the United States.

Drones

Explosion of Unknown Drone Reported in Western Kazakhstan

Debris believed to be from an unmanned aerial vehicle (UAV) has been discovered in the Burlin district of West Kazakhstan region. Preliminary information indicates that the explosion occurred early in the morning near the village of Kyzyltal. According to Uralskaya Nedelya, representatives from the district akimat (local government), emergency services, and local police are currently investigating the scene. The military prosecutor’s office has also been dispatched and has opened a criminal case. “This morning, a drone of unknown origin exploded near Kyzyltal village in the Burlin district. The roofs of houses in the village were nearly blown off,” eyewitnesses told local media. The incident coincides with an air threat alert declared in Russia’s neighboring Orenburg region, where authorities reported a potential UAV incursion. The “Kover” plan, a protocol enacted during airspace threats, was implemented at the airports in Orenburg and Orsk. Police in West Kazakhstan confirmed the incident and stated that a full investigation is underway. “The police department, in cooperation with authorized agencies, is conducting an investigation into the discovery of what appears to be UAV debris in the Burlin district. All circumstances are being reviewed,” the department’s press service said. Kazakhstan’s Ministry of Defense also responded, noting that no casualties or material damage had been reported. “In cooperation with relevant state bodies, verification efforts are underway to determine the circumstances and origin of the object. The Ministry of Defense of the Republic of Kazakhstan has implemented additional measures to enhance airspace control and prevent unauthorized aerial border crossings. Consultations are ongoing with foreign partners who may potentially be linked to the UAV,” the ministry said in a statement. This incident follows a similar discovery on June 19, when suspected UAV fragments were found in the Karakiyan district of the Mangistau region, near the Bolashak border station. As The Times of Central Asia previously reported, in March 2025 there were three drone-related events in West Kazakhstan in one month, raising concerns about airspace security near the country's border with Russia.

Banking

Kazakh Lawmakers Propose Ban on the Word “Halyk” in Bank Names

A group of deputies in the Mazhilis, Kazakhstan’s lower house of parliament, has proposed amendments to the Law “On Banks and Banking Activities,” seeking to prohibit the use of specific words in the names of financial institutions, most notably “halyk” (“people's”). Deputy Murat Abenov announced the initiative via his official Facebook page, stating that more than 50 lawmakers are backing the proposal to revise Article 7 of the banking law. The draft amendment would expand existing restrictions on bank names, currently banning terms such as “national,” “central,” “state,” and “republican”, to also exclude “people's” and “halyk,” in any language or form. If adopted, the legislation would directly affect Halyk Bank JSC, one of Kazakhstan’s most prominent and systemically important financial institutions. Halyk Bank, whose name translates to “People’s Bank,” is part of the broader Halyk Group, which is active in banking, insurance, brokerage, and leasing services. The bank’s largest shareholder is ALMEX Holding Group JSC, controlled by Timur and Dinara Kulibayev, the son-in-law and daughter of former President Nursultan Nazarbayev. Abenov argued that the term “people's” carries specific legal and symbolic significance. Under Article 3 of Kazakhstan’s Constitution, the people are the bearers of sovereignty and the sole source of state power. He contended that allowing a private commercial institution to use this term may mislead the public into believing it serves or is governed by the population at large. The proposal has drawn strong criticism from the Kazakhstan Investors Association, which views the amendment as selectively targeting Halyk Bank. “The discussion and especially the adoption of this amendment pose significant risks to legal certainty, the investment climate, and the national economy,” the Association said in a public statement. The Association further emphasized that brand names are legally protected intellectual property. Under Kazakhstan’s Constitution, private property, including trademarks, can only be expropriated through a court ruling. “A legislative prohibition on an established, lawfully registered brand violates core principles of Kazakhstan’s legal system,” the statement read. Investor representatives also warned that the move could damage Kazakhstan’s reputation among foreign investors. “The Halyk Bank brand has existed for decades and holds historical significance. Forcing a name change may be viewed as retroactive regulation, undermining investor confidence, especially considering the bank’s shares are listed on the London Stock Exchange,” the Association noted. The group called for a “constructive dialogue grounded in legal principles, economic rationale, and common sense,” warning that arbitrary restrictions could harm financial stability and deter investment. As previously reported by The Times of Central Asia, Halyk Bank has expanded regionally, acquiring a 49% stake in Uzbek digital payments firm Click, marking a major fintech investment in Central Asia.