NUR-SULTAN (TCA) — The Industry Development Fund of Kazakhstan will be created under the Ministry of Industry and Infrastructure Development. The Fund will allow businesses to develop capital-intensive projects in mechanical engineering, the Chairman of the Union of Machine Builders of Kazakhstan Meiram Pshembayev said at a press conference on August 1.
The Kazakh engineering industry has moved from the production of components and spare parts to the production of final products: diesel locomotives, electric locomotives, passenger and freight cars, trucks, buses, combine harvesters, pumping equipment, and elevators, the press service of the Prime Minister of Kazakhstan reported.
Since 2000, Kazakhstan’s machine-building production volume has increased 24-fold, amounting to 1.1 trillion tenge at the end of 2018.
In Pshembayev’s words, the Industry Development Fund will allow businesses to develop capital-intensive projects in mechanical engineering and finance projects in the manufacturing sector.
Such funds have successfully operated for several years in Russia and Belarus, providing loans at a rate of 1.4% per annum for leasing projects and 1% for scientific, technical development and innovative projects, increasing labor productivity. The effectiveness of the new Fund will be determined by the fact that the general policy of supporting industry will be concentrated in one hand — under the Ministry of Industry and Infrastructure Development. Clear monitoring of the Fund’s activities will be carried out.
Other measures include the introduction of tax preferences for enterprises in order to modernize existing capacities, as well as further increase in the export potential of domestic enterprises.
