Our People > Aliya Haidar

Aliya Haidar

Journalist

Aliya Haidar is a Kazakhstani journalist. She started her career in 1998, and has worked in the country's leading regional and national publications ever since.

Articles

Digital Technologies

Kazakhstan Advances Digital Transformation with U.S. Partnerships

Kazakhstan, Central Asia’s largest economy, is rapidly positioning itself as a regional leader in digital transformation. Increasingly, United States partners no longer view Kazakhstan solely as a source of natural resources. Instead, future cooperation is expected to expand into digital technologies and artificial intelligence (AI). Advances in Digitalization In October, Kazakhstan reaffirmed its digital ambitions with a major technological breakthrough. Kaspi, the country’s leading fintech firm and a systemically important bank, launched Kaspi Alaqan, a palm-based payment system that requires no phone, card, or internet connection. The service will debut in December 2025 through dedicated ATMs in Almaty before expanding nationwide. Analysts say the innovation puts Kaspi on par with Amazon One and China’s WeChat, highlighting Kazakhstan’s readiness to adopt cutting-edge global technologies. Traditionally associated with oil, gas, and uranium, Kazakhstan is now investing heavily in becoming Central Asia’s digital hub, an evolution that presents strategic opportunities for the U.S. Partnerships in digital governance, AI, and innovation ecosystems align closely with Washington vision for expanded cooperation in Eurasia. According to the United Nations, Kazakhstan ranked 24th globally in digital development as of June 2025, placing in the top 10 for online public services. Services such as school enrollment, vehicle registration, and passport issuance have been fully digitized, requiring minimal citizen effort. In some cases, the process is faster than in many Western countries. Kazakhstan’s government aims to double its GDP to $450 billion by 2029, a target that will require more than a 2.5-fold increase in investment. Digital technologies are central to this strategy. To manage this transformation, a new Investment Board was established in October 2025 to oversee large-scale projects and determine economic priorities. In September, the Mazhilis (lower house of parliament) passed a landmark law on artificial intelligence. Deputies highlighted fairness, transparency, and the protection of personal data as key legal principles. The newly launched National Artificial Intelligence Platform hosts over 100 AI agents that support e-government functions and expand access to technology. Additionally, in July, Kazakhstan introduced a supercomputer powered by NVIDIA H200 GPUs. With performance reaching 2 exaflops (FP8), it is the most powerful computing system in Central Asia. Startups, universities, and research centers now have access to this infrastructure. The language models KazLLM and Alem LLM have also been introduced, capable of generating content in Kazakh, Russian, English, and Turkish. For the U.S., Kazakhstan’s AI ecosystem offers a valuable partner for collaborative research, ethical framework development, and State Department–supported initiatives using AI for sustainable development. Investing in the Future U.S.–Kazakhstan cooperation in digital innovation is already accelerating. In September, Amazon announced a $200 million investment in Kazakhstan’s internet infrastructure. A distribution agreement with Kazakhtelecom will bring Amazon’s Kuiper satellite network to the republic, improving connectivity and driving economic growth. Additionally, 24 startups from Central Eurasia have joined U.S. accelerator programs such as AlchemistX and Silicon Valley Residency. These initiatives, launched in September in Palo Alto, connect regional teams with U.S. venture capital and technology ecosystems. Kazakhstan is also advancing blockchain infrastructure. Astana recently launched the...

9 months ago

Foreign Investment

Kazakhstan Courts Global Investment with Critical Minerals and Green Energy Push

Since gaining independence, Kazakhstan has established itself as a reliable global supplier of raw materials. Today, the country's economic structure is evolving as it positions itself as a high-added-value hub for industrial production. These developments are closely tied to Kazakhstan’s transition to a green economy and its role in global supply chains for critical minerals. Creating a Favorable Investment Climate Kazakhstan has taken significant steps to create a transparent, predictable investment environment and enhance its business competitiveness. Among these measures is the introduction of investment agreements that guarantee legislative stability for up to 25 years for large projects exceeding $60 million. The legal framework has also undergone reforms, procurement procedures have been modernized, and judicial reforms have created separate cassation courts and redefined the Supreme Court’s role. These reforms have drawn the attention of international investors and rating agencies. In 2024, Moody’s upgraded Kazakhstan’s long-term credit rating to the highest level in the country's history, citing macroeconomic stability and policy predictability. In the first nine months of 2025, GDP grew by 6.3%, while investment in fixed capital rose by 13.5% to reach $26 billion. Moody’s analysts also highlighted Kazakhstan’s stronger economic outlook compared to other hydrocarbon-exporting nations, attributing this to ongoing reforms that enhance the country’s competitiveness. One key driver is the rapid development of the transport and logistics sector, particularly through the Trans-Caspian International Trade Route, also known as the Middle Corridor. This corridor is attracting foreign investors across a range of non-oil sectors, including automotive, pharmaceuticals, food production, and construction materials. Kazakhstan is also home to the Astana International Financial Centre (AIFC), a platform that operates under English common law. The AIFC offers tax exemptions, simplified labor regulations, and digital arbitration. It currently ranks first in Eastern Europe and Central Asia in the Global Financial Centres Index. More than 4,200 companies from 80 countries, including over 60 American firms, are registered with the AIFC. Strategic Projects Take Shape Kazakhstan’s diversification strategy and focus on critical minerals were prominently showcased during the 8th Kazakhstan Global Investment Roundtable (KGIR-2025), held in Astana in October. The event attracted over 1,000 participants from 55 countries, resulting in the signing of 49 agreements worth $7.5 billion. A key session focused on critical minerals and the energy transition, signaling the country’s long-term growth trajectory. Among the highlights was a meeting between the government and Mohammad Vahid Sheikhzadeh Najjar, CEO of FakoorSanat Tehran Engineering Co., to explore cooperation in mining and metallurgy, including new technologies for processing mineral raw materials. Sheikhzadeh Najjar noted that the global market for critical minerals, currently valued at $328 billion, is expected to double by 2032. He emphasized that Kazakhstan is well-positioned to lead this growth. Environmental initiatives, such as a project to process 55 billion tons of mining waste, offer additional economic potential. Meanwhile, Chinese investor Zhang Jintao, founder of Chengdu Sepmem Energy, proposed a long-term plan to develop an LNG cluster in Kazakhstan. The project envisions a nationwide network of LNG plants and supporting infrastructure to reduce emissions...

9 months ago

Cultural Heritage

U.S. Envoys Experience Kazakhstan’s Living Nomadic Traditions

U.S. Special Representative for South and Central Asia Sergio Gor and Deputy Secretary of State Christopher Landau recently visited Kazakhstan as part of preparations for the upcoming C5+1 summit. While official releases highlighted meetings on regional cooperation and stability, local media also noted cultural engagements showcasing Kazakhstan’s living nomadic traditions. While in Almaty, the U.S. delegation also toured the Shymbulak ski resort and the Medeu high-altitude skating rink. Amidst the picturesque alpine scenery, they participated in traditional archery, an enduring symbol of the nomadic peoples’ skill and heritage. Archery: A Living Legacy Traditional archery, known as sadak atu, is experiencing a revival in Kazakhstan. As in the past, both boys and girls train in the discipline, a tradition rooted in the realities of steppe life, where women were equally taught to hunt and defend their communities. Far more than a sport, archery reflects a nomadic philosophy. In ancient times, the bow served both as a hunting tool and a weapon of war, requiring intricate craftsmanship using wood, bone, and animal tendons. Archers learned to shoot from horseback, relying on instinct and experience rather than sights. Today, this heritage is inspiring a resurgence of interest among young Kazakhs. Archery clubs are opening across the country, competitions are being held, and the traditional art is gaining popularity. The 5th World Nomad Games, held in Astana in 2024, prominently featured sadak atu among other ethnic sports. Petropavl also hosted the Kazakhstan Youth Traditional Archery Championship, drawing 400 participants aged 10 to 17, many in national attire. Meanwhile, Uralsk hosted the 4th Republican Traditional Archery Championship, with 270 athletes from 18 regions competing. Coaches expect the popularity of sadak atu and zhamba atu, mounted archery, to grow, offering Kazakhs a tangible link to their ancestral culture and a spectacle that continues to impress international visitors. [caption id="attachment_22863" align="aligncenter" width="909"] Horseback archery at the World Nomad Games 2024; image: TCA, Ilyas Otan[/caption] The Tazy: A National Symbol The Tazy dog, sometimes referred to as the Kazakh or Central Asian greyhound, holds a special place in Turkic heritage. Once indispensable to nomadic hunters, the breed’s cultural and historical value is now protected by state policy. In 2023, Kazakh President Kassym-Jomart Tokayev was gifted a Tazy puppy called Nauryz, which is named after the spring festival celebrating renewal. The president emphasized the importance of promoting the Tazy and Tobet breeds internationally and called on the Ministry of Foreign Affairs to participate in preservation efforts. A special law was adopted to support this cause. By 2024, President Tokayev had three Tazy dogs under his care. He is known to walk them personally in his free time. That same year, he gifted two Tazy puppies to French President Emmanuel Macron. Delivered to Paris, the puppies were named Jules and Jeanne. [caption id="attachment_38363" align="aligncenter" width="1200"] The Tazy; image: TCA, Stephen M. Bland[/caption] Hunting with Birds of Prey: The Wings of Victory The tradition of hunting with birds of prey, kusbegilik, has deep roots in Turkic culture, dating back millennia. Archaeological...

9 months ago

State Visit

Azerbaijan and Kazakhstan Deepen Strategic Partnership Through Middle Corridor

Azerbaijani President Ilham Aliyev’s recent state visit to Astana has marked a significant turning point in relations between Azerbaijan and Kazakhstan. President Kassym-Jomart Tokayev and President Aliyev underscored the rapid expansion of cooperation across transport, investment, and technology sectors. Political and cultural ties are also deepening, bolstering what both sides have described as a “brotherly” relationship. Economic Ties Strengthened by Infrastructure and Energy Projects Tokayev highlighted the strategic importance of the Trans-Caspian International Transport Route (Middle Corridor), noting a 62% increase in freight traffic in 2024 to 4.5 million tons, with a further 2% rise recorded so far in 2025. Kazakhstan is currently building a container hub in Aktau, while a new cargo terminal in the port of Alat, developed with foreign partners, including China, offers further growth potential. The two leaders also discussed establishing a Trans-Caspian ferry system to expand exports, with a long-term goal of boosting cargo traffic to 10 million tons. Tokayev further emphasized Kazakhstan’s use of the Baku-Tbilisi-Ceyhan pipeline for oil exports. In 2024, nearly 1.5 million tons of Kazakh oil transited through Azerbaijan, with plans to increase volumes significantly. He also cited efforts to deliver Kazakh uranium to foreign markets via Azerbaijan. Joint IT projects are also advancing, including plans to lay a fiber-optic communication line under the Caspian Sea. Tokayev commended the joint declaration on peace signed by Armenia and Azerbaijan in Washington under U.S. mediation, calling it a "historic" milestone in regional reconciliation efforts. Earlier on Monday, Aliyev had announced a significant policy shift, stating that Baku is lifting all restrictions on the transit of goods to Armenia. Middle Corridor as a Strategic Geopolitical Tool The Middle Corridor, connecting China and Europe through Kazakhstan, the Caspian Sea, and Azerbaijan, was a major focus of Aliyev's state visit. Amina Kosbaeva of the Institute for Eurasian Integration noted that the corridor - which carried about 2.7 million tons in 2023 and 4.5 million tons in 2024, as traffic shifted away from traditional routes via Russia - is evolving into a strategic asset that enhances regional autonomy and global connectivity. Kosbaeva highlighted that both countries have built a sustainable cooperation model grounded in cultural commonalities and mutual trust. She identified agriculture, petrochemicals, and machine-building as key sectors where new supply chains could emerge, boosting trade and resilience to global market fluctuations. Kosbaeva added that future cooperation is likely to grow within the framework of the Organization of Turkic States (OTS), which held its 12th Summit in Gabala, Azerbaijan, on October 6–7, 2025. further institutionalizing bilateral ties as a driving force within the Turkic world. “The history of the Turkic peoples goes back to common roots,” Tokayev said at the summit, expressing support for the idea of a broader “Turkic-speaking States +” platform to expand cooperation. Business Relations Rooted in Political Alignment Kazakh political analyst Gaziz Abishev noted that Astana and Baku often align on geopolitical issues. “The relationship between the two countries proves that rigid multilateral blocs are not necessary for close alliances. Unconditional mutual sympathy at all levels, leaders,...

9 months ago

Aral Sea

Kazakhstan Urges Regional Cooperation to Save the Aral Sea

Kazakhstan has intensified its efforts to restore its portion of the former Aral Sea, calling on neighboring Central Asian states to increase their participation in regional environmental cooperation. Once the world’s fourth-largest lake, the Aral Sea has become a symbol of ecological catastrophe. Experts warn that international efforts remain inadequate. How the Sea Died Straddling the border between Kazakhstan and Uzbekistan, the Aral Sea began to shrink in the 1960s when large-scale irrigation projects diverted water from its two main tributaries, the Amu Darya and Syr Darya rivers, to support cotton production and agriculture. A growing regional population added further strain. By 1989, the sea had split into the Northern (Small) and Southern (Large) Aral Seas. In 2014, the eastern basin of the Southern Aral Sea dried up completely. Today, the Aralkum Desert occupies much of what was once open water. Kazakhstan has since focused on restoring the Northern Aral Sea. [caption id="attachment_37684" align="aligncenter" width="2560"] A ship stranded in the desert, Moynaq, Uzbekistan; image: TCA, Stephen M. Bland[/caption] The restoration of the Northern Aral Sea has already yielded visible environmental and social benefits. Rising water levels have lowered salinity, allowing several native fish species to return. Local fisheries, once thought lost, are now active again in communities such as Aralsk. According to the Ministry of Ecology, the annual fish catch in the North Aral has risen more than tenfold since the early 2000s, reviving local employment and boosting food security. Experts note that even small ecological gains have had a profound psychological impact on residents who once witnessed the sea’s disappearance. Call for Renewed Efforts On October 15, Kazakhstan called for expanded international cooperation to protect both the Aral and Caspian Seas. First Deputy Minister of Foreign Affairs, Yerzhan Ashikbayev, speaking at the International Astana Think Tank Forum-2025, emphasized Kazakhstan’s contribution to the global climate agenda. He noted that a regional climate summit, set to be held in Astana in 2026, would provide a platform for coordinated strategies and joint decision-making among Central Asian nations. “Astana also calls for increased international participation in solving environmental problems and preserving the water resources of the Aral and Caspian Seas,” Ashikbayev said. Earlier, on October 10, Prime Minister Olzhas Bektenov met with senior officials from Tajikistan, Uzbekistan, and Turkmenistan during the second meeting of the Board of the International Fund for Saving the Aral Sea (IFAS), chaired by Kazakhstan. The event highlighted the need for a united regional approach, noting that restoration of the Aral Sea can be achieved through collective action. Bektenov acknowledged the challenges of the recent growing season, but said regional cooperation had helped maintain a stable water regime in the basin. “Each country has its own national interests, and we are obliged to defend them and will always do so. But I am convinced that our common strategic, long-term priority is good neighborly relations. In solving everyday short-term tasks, we must not undermine long-term priorities. I think that we will take joint measures to ensure that issues are always...

9 months ago

Alcohol

Experts Warn of Risks as Kazakhstan Considers Alcohol Sales Restrictions

On October 13, Kazakhstan’s Ministry of Internal Affairs shocked citizens by proposing a ban on the sale of alcohol in regular grocery stores, retail chains, and online platforms. The announcement overshadowed global headlines and quickly sparked widespread debate. While the number of alcohol-free settlements in Kazakhstan is rising, overall consumption remains high, prompting concerns among experts about the potential consequences of such a sweeping ban. A Push for Specialized Alcohol Stores The ministry justified the proposed restrictions as a public safety measure. According to Minister of Internal Affairs Yerzhan Sadenov, alcohol is a major contributor to crime, with up to 10,000 crimes committed annually under the influence. Violations of age and time restrictions on alcohol sales are reportedly common. “They sell around the clock under the guise of cafes and bars. Online delivery is widely used. The measure of revoking a license is ineffective, it can be obtained the next day by other persons,” said Sadenov. The ministry is advocating for alcohol to be sold only in specialized stores, so-called alcohol markets. It also proposes tightening the licensing process and limiting the number of licenses issued. Additionally, it recommends restricting alcohol sales in entertainment venues, where more than 1,400 alcohol-related crimes, including three murders, have occurred. A New Front in the Fight Against Alcohol Abuse Many Kazakhstani citizens observe that alcohol consumption has declined since Soviet times, a trend attributed to increasing religiosity in the predominantly Muslim country and the popularity of healthy lifestyles. Still, the issue remains pressing. Over the years, Kazakhstan has introduced stricter regulations. In 2014, restrictions were imposed on sales hours. High-alcohol-content beverages were banned in stores from 9 p.m. to 12 p.m., and low-alcohol beverages from 11 p.m. to 8 a.m. In 2020, the minimum legal age for purchasing alcohol and tobacco was raised from 18 to 21. As of 2025, 429 villages have officially renounced alcohol. In the Aktobe region, 33 villages adopted alcohol-free policies, while 18 in the Kyzylorda region and 53 in the Atyrau region followed suit. According to officials, no offenses have been recorded in some of these areas over the past two years. Kazakhstan Still Drinks Despite these measures, alcohol consumption remains substantial. According to the World Health Organization (WHO), the average per capita alcohol consumption in Kazakhstan among those aged 15 and older stood at 5.4 liters of pure ethanol in 2022. The global average that year was 6.2 liters, with consumption in Europe ranging from 9 to 11 liters. In predominantly Muslim countries, the average is below 3 liters. WHO considers levels above 5 liters a significant health risk. A June 2025 survey found the highest consumption in northern regions, Pavlodar, Kostanay, and North Kazakhstan, as well as in Astana and Almaty. In contrast, Shymkent, Atyrau, and Turkestan reported the lowest levels. Interestingly, young adults aged 18 to 24 were found to drink less frequently, a trend attributed to stronger family oversight and cultural values. Economic and Social Risks of a Ban Experts urge caution in pursuing aggressive...

9 months ago

Gaza Ceasefire

Kazakhstan Maintains Diplomatic Balance Following Gaza Ceasefire

On Monday, the Palestinian group Hamas handed over the final 20 surviving hostages to Israel in a two-stage exchange, reportedly mediated with the involvement of Qatari representatives. By midweek, the outcome of the latest ceasefire attempt between Israel and Hamas may become clearer. On October 13, U.S. President Donald Trump addressed the Knesset in Israel, before traveling to Egypt for a summit. The hostages had been held for more than two years, mirroring the duration of Israel’s military campaign that has reverberated across the region. The two-stage exchange formed part of a broader ceasefire framework backed by the United States, Egypt, and Qatar. Washington has framed the deal as a cornerstone of its renewed Middle East peace initiative, which aims to establish a long-term truce and pave the way for gradual reconstruction in Gaza. Trump described the agreement as the "beginning of a new security architecture for the region,” though analysts caution that deep mistrust between the parties could still derail implementation. The ongoing war in the Middle East is impacting Kazakhstan, as it is across Central Asia. Anti-Israeli sentiment has grown in this majority-Muslim country, though the government continues to advocate for a balanced and diplomatic approach. For Astana, maintaining neutrality amid the polarized reactions to the war is not just a matter of diplomacy, but also a matter of regional stability. Kazakhstan’s leadership views itself as a potential bridge between Muslim-majority nations and Western partners, drawing on its history of multivector foreign policy. Officials stress that Astana’s engagement is guided by the principles of dialogue and international law rather than religious or ideological alignment. A Delicate Diplomatic Position Kazakhstan has consistently supported international peacekeeping efforts. On September 30, President Kassym-Jomart Tokayev backed Trump's Gaza peace plan, and on October 9, Tokayev welcomed the ceasefire agreement in the Gaza Strip and the release of hostages, as announced by his press secretary, Ruslan Zheldibay. Tokayev commended the mediation efforts of Egypt, Qatar, and Turkey, and acknowledged the contributions of the United States and President Trump in advancing peace negotiations in the region. Kazakhstan recognized the State of Palestine in 1992 and established diplomatic ties. While economic relations remain minimal, the recognition holds symbolic political significance. At the same time, Kazakhstan maintains relatively strong relations with Israel, with a notable volume of bilateral trade. The country's longstanding diplomatic stance emphasizes the principle of “two states for two peoples.” Bilateral trade between Kazakhstan and Israel exceeded $450 million in 2023, driven primarily by exports of Kazakh metals and imports of Israeli technology and agricultural products. Cooperation in water management, healthcare, and defense technologies has continued despite regional instability. Kazakh officials have also emphasized the importance of Israeli investment in innovation and renewable energy sectors. Kazakhstan's diplomatic position has been reiterated consistently. In November 2023, the Ministry of Foreign Affairs reaffirmed that the only sustainable solution to the conflict lies in the creation of two sovereign states. Amid intensified hostilities in October 2023, Israel imposed a blockade on Gaza. At that time, 76...

9 months ago

TCA Interviews

TCA Interview: Asia’s First New York Film Academy Campus Opens in Almaty

On 27 September, the New York Film Academy Kazakhstan (NYFA) opened the first branch of the world-renowned American film school in Central Asia. For young Kazakhstani and foreign students, this presents a unique opportunity to gain top-tier knowledge for future careers in the industry. The new campus was established through a partnership between Almaty University of Energy and Communications (Energo University) and the Dala Edge Creative Technology Park, with the opening ceremony attended by Michael Young, President and CEO of the New York Film Academy, and Sayasat Nurbek, Minister of Science and Higher Education of Kazakhstan. Gani Nygymetov, Rector of Energo University, spoke to The Times of Central Asia about the opportunities and prospects of NYFA Kazakhstan. TCA: How did the idea to establish the New York Film Academy Kazakhstan campus in Kazakhstan come about? GN: Energo University has been in existence for over 50 years and is one of the leading technical universities in Central Asia, specializing in engineering and energy. In February this year, we presented a new development strategy that includes a mission to remain a leader in energy education, while also expanding into telecommunications, IT, and techno-creative programmes. To achieve these goals, the 16-hectare Dala Edge Creative Technology Park was created near Almaty. Now, a branch of NYFA has opened there, its first campus in Asia. Previously, NYFA campuses were only located in Florence, New York, and Los Angeles. I am confident that the opening of the campus in Kazakhstan will give an additional impetus to the development of creative industries in the region and enable us to train specialists of international calibre. The Creative Technology Park will become a hub for professional training and innovative projects and will support the integration of students and professionals into the film, animation, and game design industries. TCA: Who teaches at NYFA Kazakhstan, exclusively American specialists, or are local experts also involved in the programme? What subjects are taught? GN: American specialists teach students in film directing, screenwriting, acting, 3D animation, visual effects, and game design. All programmes meet international standards, instruction is in English, and modern tools and methods used in the United States are employed. Inviting NYFA to Kazakhstan is part of a strategy to develop the country's academic potential. The Ministry of Science and Higher Education, led by Minister Sayasat Nurbek, is actively attracting leading international universities. Today, more than 40 renowned foreign universities have opened branches in Kazakhstan. This allows talented students to receive high-quality education at home and also attracts students from other countries in the region. Partnerships with international universities, including Anhalt University (Germany), which has also opened a branch at our university, and NYFA, help set high standards of education and expand opportunities for students. In the coming years, we plan to launch our own digital media faculty. [caption id="attachment_37086" align="aligncenter" width="353"] Gani Nygymetov, Rector of Energo University; image: Energo University[/caption] TCA: How many students are currently studying at NYFA Kazakhstan? Are there plans to expand the number of disciplines? GN: NYFA...

10 months ago

Medicines

Kazakhstanis Face Drug Shortages and Soaring Prices

Kazakhstanis are paying significantly more for medicines than residents of many other countries, and often struggle to find essential drugs at all. According to the Agency for Protection and Development of Competition (APDC), rising prices, supply disruptions, and an inefficient procurement system are driving a worsening healthcare crisis. Price Hikes Kazakhstan’s medicine procurement system is complex. In principle, essential drugs should be available to patients free of charge under the guaranteed volume of medical care and mandatory social health insurance. In practice, many face shortages or receive lower-quality substitutes. As a result, patients are often forced to buy medicines themselves, an increasingly unaffordable burden. According to the APDC, inflated prices are caused by several factors. One is the lack of pricing transparency. Previously, drug prices were pegged to the highest prices in reference countries, figures submitted by suppliers without verification. As a result, generics sometimes cost nearly as much as original-brand drugs. Another issue is procurement through intermediaries. Up to 45% of state-purchased medicines are bought not from manufacturers but from local distributors, who add their own markups. Costs are also inflated by expensive inspections. To enter the market, companies must pay for production inspections, fees set independently by a state agency that can reach millions of tenge. These costs are passed on to consumers. To address these problems, the APDC has recommended switching to average reference-country prices, limiting inspections on products from countries with stringent regulations, and transferring inspection services to a state monopoly with controlled rates. It also urges more direct procurement from manufacturers and better verification of supplier costs. Tax Reforms Threaten Further Price Increases Despite already high prices, medicines will soon be subject to new taxes. Under Kazakhstan’s revised Tax Code, beginning in 2026, medical services and the sale of medicines and medical products will be subject to value-added tax (VAT), initially at 5%, rising to 10% from January 1, 2027. An exception will apply to medicines and services provided under the guaranteed medical care package and mandatory health insurance. However, as noted earlier, many patients struggle to access these programs in practice. Pharmaceutical companies warn that these VAT changes will drive prices even higher and lead to fresh shortages. Industry leaders also point to the planned 16% VAT on pharmaceutical raw materials, equipment, and components, calling it a distortion of tax policy and a threat to the sector’s stability. “The market is on the edge. Many drugs are already unprofitable and are being withdrawn. The introduction of VAT will accelerate the outflow. The number of registered medicines in Kazakhstan has already dropped from 12,000 to 6,900,” said Marina Durmanova, President of the Association for the Support and Development of Pharmaceutical Activity. “If no measures are taken, the country could face shortages of key drugs and further monopolization of the pharmacy sector,” she warned. Kazakhstan produces few essential medicines domestically, meaning prices continue to rise month by month. When Medicines Vanish, So Do Lives Price increases are only part of the crisis. Vital medicines frequently disappear...

10 months ago

Inflation

Experts Say Kazakhstan Must Boost Manufacturing to Tame Inflation

Inflation is steadily eroding incomes in Kazakhstan, depleting savings and undermining government efforts in the social sector. The Times of Central Asia previously noted that surging economic growth could be a contributing factor to Kazakhstan’s inflation problem. But despite rising prices, the government has no plans to apply the brakes. On the contrary, officials point to promising GDP growth driven by sectors beyond oil. Meanwhile, independent experts argue that only large-scale industrial development can provide a lasting solution to inflation. Persistent Price Pressures Inflation continues to outpace official projections. In August, annual inflation hit 12.2%, and by the end of 2025 it is expected to reach 14%, well above the National Bank of Kazakhstan’s target range of 5-6%. Economists say the country’s dependence on imports is a key driver. Kazakhstan imports large volumes of food, fuel, medicine, equipment, and consumer goods. Wage and pension increases are failing to keep pace with the surge in prices. President Kassym-Jomart Tokayev has acknowledged that high inflation poses a serious challenge, warning it is “eating away at economic growth and household incomes.” Government efforts to stabilize prices have yet to show meaningful results. On September 23, Minister of Trade and Integration Arman Shakkaliev announced that Kazakhstan will gradually phase out price controls on socially significant food products (SZPT) in favor of targeted digital support for consumers. The SZPT list currently includes 19 essential items. At the same time, Prime Minister Olzhas Bektenov instructed agencies to crack down on unjustified price hikes for basic goods, ordering strict enforcement of available price control tools. Growth at a Cost Inflation, according to Deputy Prime Minister and Minister of National Economy Serik Zhumangarin, is being fueled by economic expansion. He warned that efforts to restrain inflation could hinder growth. “Since 2023, GDP has grown by 5%, and in 2024 we grew without the contribution of oil. This year is a turning point. From 2026, oil will no longer influence GDP growth,” Zhumangarin said. Although Kazakhstan’s economy has long relied on oil revenues, the minister believes this trend is now shifting. “Economic growth is always accompanied by high inflation,” he said. “More than $12 billion in investments have already been attracted, and the target for the year is $24 billion. The government will soon announce a new strategy for economic growth. We must follow the path of Asian countries but with modern technologies.” Call for Industrialization Independent analysts argue that real progress against inflation requires mass domestic production across a wide range of goods. Political analyst Gaziz Abishev stressed the urgency of moving beyond megaprojects toward practical, infrastructure-linked industry. “Kazakhstan needs real production, not fairy-tale megaprojects. Industry tied to infrastructure, logistics, human resources, and markets solves many issues,” he wrote. “It creates well-paid jobs, stimulates small and medium-sized businesses, reduces reliance on imports, supports the tenge, and addresses budget deficits.” Abishev also called for openness to foreign industrial investment, regardless of origin. His comments appear to push back against public concerns over the influence of Russia, China, and Western...

10 months ago

Previous 1 … 3 4 5 6 7 … 14 Next