Dear Compatriots!
Distinguished Members of the Kurultai and Members of the Government!
Today, as Head of State, I deliver my traditional Address to the people of Kazakhstan. This year’s Address is particularly significant, both in its substance and in the message it conveys.
On 25 October, we celebrated our national holiday, Republic Day.
On that day, we adopted the Declaration of Sovereignty, taking a decisive step towards the independent development of our country.
Soon afterwards, we raised the flag of Independence high and laid the foundations of our statehood.
This year marks the 35th anniversary of our cherished Independence – a significant milestone in our nation’s history.
In March, the Constitution – the foundation of our statehood and an enduring guide for our people – was adopted through the will of the people. This event holds profound historical significance.
The Constitution can be described as a sacred covenant between several generations, as it clearly sets out both the present character of Kazakhstan and the vision of its future.
The Constitution, which received overwhelming support from our citizens, came into force on 1 July, providing a powerful impetus for the fundamental renewal of our country’s political architecture and the establishment of new institutions of government.
Together, we have embarked in earnest on extensive work to build a brighter future.
Our people can see these historic changes taking place. Despite the importance of this subject, I do not believe it is necessary to dwell on it today.
Today, I will set out my vision for the country’s further socio-economic development and the goals and tasks before us.
Let me be frank: we have not yet fully resolved all the issues involved in strengthening our Independence and safeguarding our Sovereignty.
This means that many urgent tasks still lie ahead. To address them effectively, we need unity and harmony in society above all else. Without these, there can be no reform and no progress.
Against a backdrop of unprecedented global challenges, discipline and order must be our foremost priorities as a society.
Today, countries are making fabricated accusations against one another that defy common sense, while behind-the-scenes confrontation is intensifying. A profound crisis of trust has emerged among major powers.
Uncontrolled migration flows have increased markedly, seriously affecting the security of a number of European countries.
The authority of the United Nations has been critically weakened, and the entire system of international law has suffered serious erosion.
In short, the world has entered a period of uncertainty, and political analysts and experts have no common view of what lies ahead.
It would be no exaggeration to say that the international community is living through turbulent times. Not even during the Cold War did we face a situation so complex and unpredictable.
Despite this turbulence, Kazakhstan has decisively entered a new stage of its development and carried out far-reaching political reforms. Such an achievement is rare in the world.
We must now strengthen our sovereignty, maintain domestic stability and continue to develop dynamically despite global instability.
Success will depend on the tireless work of society as a whole, particularly patriotic, active and educated citizens. I also place great hopes in the members of the Kurultai.
Under these circumstances, the crucial role of the state apparatus and law enforcement agencies is clear to everyone.
In other words, our generation must leave to our descendants not merely plans and concepts, but a country with a strong and dynamic economy, underpinned by advanced technology, science and education; a progressive state where the law is respected; and a Kazakhstan with geopolitical influence and considerable standing on the world stage.
This is the true strategic task facing our nation.
Distinguished Members of the Kurultai!
Distinguished Members of the Government!
For our country to make steady progress, it is essential that we address the large-scale tasks before us effectively and without delay.
Citizens must have access to all the social infrastructure they need. This is a key condition for improving their quality of life.
We will therefore focus our efforts primarily on infrastructure development.
As I have said before, Kazakhstan must become one vast construction site.
This is not merely a matter of individual projects. We must launch full-scale construction across every region of the country.
First, we must carry out a comprehensive assessment of each region’s needs for healthcare, education, cultural and sporting facilities as quickly as possible.
We will continue to give special attention to rural development and create the conditions for rural residents to enjoy a decent standard of living.
At the same time, it is important to recognise that cities are now the principal centres of economic activity, education and technology, as well as places where talent is nurtured and developed.
Strong cities create strong regions, and strong regions create a strong country.
Every major city must therefore have a clear medium- and long-term development plan approved by the Government.
Furthermore, to ensure the efficient management of urban resources, the Government, working together with local administrations, must develop digital twins of urban infrastructure in the near future.
Ensuring safety, improving the appearance of our cities and making them pleasant places to live must be national priorities.
This is fully consistent with the nationwide Taza Qazaqstan (Clean Kazakhstan) initiative.
When a city develops dynamically, the economy of the surrounding region also prospers, and its human potential grows.
In this regard, we will place particular emphasis on the construction and modernisation of facilities of major social and economic importance.
We have both the capacity and the resources to achieve this.
According to forecasts by the International Monetary Fund, our country’s gross domestic product is expected to approach 400 billion US dollars this year, while GDP per capita will exceed 19,000 US dollars.
In terms of economic size, Kazakhstan is expected to rank 47th in the world, ahead of several countries with much larger populations.
The manufacturing sector is also developing rapidly. Its share of gross domestic product has exceeded 14 per cent. This is a tangible result of the systematic efforts undertaken to diversify our national economy.
The combined value of our gold and foreign exchange reserves and the assets of the National Fund has exceeded 130 billion US dollars.
We must now use this considerable potential to modernise infrastructure and develop every region of the country.
I therefore instruct the Government to proceed with the active implementation of the large-scale construction initiative I announced earlier. Under this initiative, essential social, transport and engineering infrastructure facilities will be built throughout the country.
The Government will develop an unprecedented Infrastructure Modernisation Plan.
Approximately 6.5 trillion tenge will be allocated from the National Fund up to the end of 2029 to implement this large-scale initiative. Of this amount, 1.5 trillion tenge must be earmarked for social projects in 2026 and the first two months of 2027.
The primary purpose and mission of the National Fund is to safeguard and increase our national wealth, and to ensure that it serves the interests of both present and future generations.
For many years, the National Fund has successfully fulfilled this fundamental responsibility, making a substantial contribution to maintaining financial stability.
If we are truly committed to the well-being of the younger generation, we must take concrete and decisive action now.
We cannot put off today’s problems until tomorrow. Every issue must be addressed in good time. That is our fundamental requirement.
I am deeply convinced that our historic responsibility to future generations is not simply to leave money in bank accounts, but to build and bequeath a fundamentally different country: technologically advanced, with a strong, competitive economy, modern infrastructure and high living standards, where every citizen has the opportunity to fulfil their potential.
This is our principal task – indeed, our mission of historic significance.
This is a long-term investment in human potential, improving the quality of life of our citizens and, therefore, in the country’s future.
However, we must strike a sensible balance between preserving the resources of the National Fund and using them where they will bring the greatest benefit to society.
Above all, public investment must deliver economic and social returns, since its primary purpose is to improve citizens’ well-being.
Local small and medium-sized enterprises with the necessary equipment and experience should be involved as widely as possible in implementing these projects.
The entire construction process will be subject to rigorous oversight.
In the first phase, approximately 70 healthcare facilities will be built in the regions. These will include perinatal centres, hospitals, ambulance stations, rehabilitation centres for children and sports halls for children with special needs.
In addition, construction will begin on around 50 educational, sporting and cultural facilities.
We must begin building these much-needed, high-quality facilities without delay and bring them into operation as soon as possible.
Furthermore, substantial funding will be allocated to the housing and utilities sector.
Many communities will be provided with access to gas supplies and clean drinking water.
By the endthis year, the Government will prepare an initial list of specific projects covering every region without exception.
We must live up to the high expectations of our people.
These plans are intended to improve citizens’ well-being and quality of life. There is no catch or hidden motive. I am therefore confident that no one will object if we call this initiative “People’s Construction”.
The “People’s Construction” programme will be the largest infrastructure project in our country’s history, raising living standards and giving a powerful boost to entrepreneurship and the economy as a whole.
This initiative will provide work for hundreds of thousands of people and that its benefits will be felt throughout the country, especially by the younger generation. I firmly believe in this.
Let me now turn to the next issue. We must place particular emphasis on developing logistics infrastructure.
This is one of the key factors contributing to our country’s continued growth and prosperity.
Countries everywhere are focusing on logistics. Without a developed transport and logistics system, even those now in the lead risk falling behind.
Next year, the Bakhty–Ayagoz railway line will become operational in Kazakhstan. The line will increase freight capacity on routes towards China by 20 million tonnes.
In August, construction began on the Aral–Caspian transport corridor. This project will shorten the Trans-Caspian Corridor by approximately 1,000 kilometres and reduce freight delivery times to three days.
The Government must ensure strict oversight of the timely and effective implementation of all projects undertaken in this sector.
Global logistics has entered a period of profound transformation and rapid development.
The growing vulnerability of maritime routes has increased the strategic importance of overland transport corridors.
Kazakhstan must seize this historic opportunity to become a leading logistics centre in Eurasia in practice, not merely in name.
Already, approximately 85 per cent of freight transported from China to the European continent passes through our territory.
However, to remain content with the favourable circumstances we enjoy today would be to condemn ourselves to falling behind in the future.
We must act now to become a fully fledged organiser of international freight flows.
Particular emphasis should be placed on developing domestic logistics operators and establishing freight consolidation and distribution centres.
It is equally important to develop new manufacturing facilities and trading hubs around major transport junctions.
Our strategic task is to build a network of modern railways and roads linking our territory and strengthening the country’s transit potential.
The volume of freight transported through our country continues to grow year on year.
We must therefore continue to improve our road infrastructure. This is particularly important for the northern regions of the country.
We must therefore proceed with the widening of the Kokshetau–Petropavl road.
We must also provide support to domestic businesses engaged in road freight transport. The fact is that foreign operators account for more than half of all road freight transit through Kazakhstan.
The time has come to bring order to this sector as well. The Government will take the necessary measures.
Our main objective is to raise citizens’ incomes by strengthening the country’s transit potential.
Next year, we must complete the high-quality reconstruction of all road border crossings.
Until recently, progress on this work has been far too slow and inconsistent.
We face an extremely pressing task: to ensure the high-quality construction of all roads – and I emphasise, all roads – both national and local.
Citing various rules and regulations, executive authorities at both central and local levels have simply passed responsibility from one to another. They have done everything possible to bury the issue in a bureaucratic quagmire.
I therefore instruct that responsibility for all roads – whether national roads, which account for approximately 26 per cent of the entire road network, or local roads currently administered by regional authorities – must rest with the Government, acting through the Ministry of Transport.
Let me repeat: we need roads of the highest quality.
Excuses concerning the quality of bitumen or crushed stone will not be accepted.
I must remind you that without high-quality roads and modern roadside service infrastructure, Kazakhstan cannot aspire to become a major international transit route or a Eurasian transport and logistics hub. That is what is at stake. This issue must be resolved, whatever it takes.
If our border crossings become bottlenecks, causing traffic queues stretching for kilometres – as is precisely the case today – then there can be no question of Kazakhstan claiming a leading position in this field.
Key air corridors connecting Europe and Asia pass through our territory. This represents an enormous competitive advantage, yet one that, so far, exists largely on the pages of glossy presentations.
To turn this advantage into a practical reality, we must establish well-developed ground-based service infrastructure. This is standard international practice.
For the time being, however, substantial revenues are quite literally flying past our country.
High expectations have been placed on the private company Air Cargo. The company has considerable funding capacity, including the ability to offer competitive remuneration to leading international specialists, and it has the authority to make decisions independently. Yet, so far, there have been neither decisions nor results.
The trust placed in the company must be justified, and we expect concrete results.
For the first time in our history, several airports are being built simultaneously in different regions.
The restoration of Arkalyk Airport has been completed, and the airports in Zaysan, Katon-Karagay and Kenderli will become operational in the near future.
Next year, we will begin construction of a modern airport in Astana in partnership with one of the world’s leading companies in this sector.
To firmly establish itself as a key transport hub in Eurasia, Kazakhstan must accomplish a number of important tasks.
First and foremost, this means achieving the full digitalisation of the transport sector, including international transport routes.
In the age of artificial intelligence, managing global transit flows using paper consignment notes is absurd.
It is the shortest route to nowhere.
In today’s world, access to electricity has become a decisive factor in determining the competitiveness of every state and even its economic sovereignty.
The reality we have entered is, in essence, the “Age of Electricity.”
For Kazakhstan, it is critically important to transform its raw material advantage into sustainable progress in energy and technology.
Frankly, there are more than enough problems in this area.
We have only a handful of qualified energy professionals, yet forums and discussions on energy issues are held with remarkable frequency and on an impressive scale.
Meanwhile, Kazakhstan’s energy sector faces a substantial electricity shortfall every year. During the winter months, when demand peaks, electricity is purchased from neighbouring countries at high prices. In the summer, the electricity is then sold back at drastically reduced rates.
Such a simple “business model” has been in operation for decades.
I am assured that this is standard practice in the energy sector.
It is therefore hardly surprising that construction of the combined heat and power plant in Balkhash, which had already begun, was derailed.
Today, the commissioning of new generation capacity is also being delayed in Turkestan, Kyzylorda, Almaty and Ekibastuz.
Kazakhstan generates 123 billion kilowatt-hours of electricity annually.
For a country with developing industry, construction and agriculture – and, above all, plans to digitalise its economy comprehensively, introduce artificial intelligence into every sphere of society and build data centres – this amount of electricity is catastrophically insufficient.
Therefore, we face a task of strategic importance: to achieve a sustained electricity surplus by 2029.
To this end, we must build new power plants and modernise existing power stations and power transmission lines, fully develop “clean” coal-powered generation, and give due attention to renewable energy, particularly solar power.
The Government must update the country’s unified long-term energy balance to 2035.
Nuclear power generation is of fundamental importance.
Following a nationwide referendum, the right decision was made to build several nuclear power plants.
We must already begin considering how to secure uranium supplies for these plants fifty years from now and beyond.
I believe the proposal to establish a state strategic uranium reserve deserves serious consideration. Such a reserve would allow us to meet the uranium requirements of Kazakhstan’s nuclear power plants for the next century.
It is important to engage foreign partners involved in the construction of nuclear power plants in establishing high-tech industries in Kazakhstan, transferring expertise in nuclear energy, and training domestic nuclear specialists. Proposals to this effect have been put forward by Russian and Chinese companies.
I believe it may be possible, and perhaps necessary, to begin construction of the Balkhash Nuclear Power Plant as early as next year and sign a comprehensive cooperation agreement to start construction of the Moyynkum Nuclear Power Plant as soon as possible.
Naturally, all negotiating positions must be carefully developed and agreed with full regard for Kazakhstan’s national interests.
In short, the entire country will undertake a comprehensive renewal and reconstruction of its civilian infrastructure.
However, when addressing a task of such strategic importance, it is unacceptable to rely solely on public resources.
Otherwise, entrepreneurial activity will decline and the seeds of paternalism – or, more simply, dependency – will be sown (from now on in the economy), with all the consequences we know.
The Government must mobilise all sources of long-term financing.
Together with the financial community, we need to determine how this can be achieved lawfully and in the interests of the state.
The reasoning is straightforward: public funds must provide a guarantee to attract private investment.
In addition, we must develop the mechanisms needed to accelerate the country’s industrial and technological development.
Kazakhstan is a country rich in minerals and raw materials. This is our strategic advantage.
We must therefore fundamentally reform our approach to geological exploration.
It is clear that searching for new mineral deposits using outdated methods will not yield positive results. We must turn geology into a high-technology industry.
It is essential to ensure a comprehensive study of the country’s subsoil using advanced technologies, while guaranteeing the transparency and accessibility of geological data.
We should actively attract private investment into the search for and exploration of new mineral deposits.
The importance of critical metals is growing.
Drawing on international experience, we must establish a national system for managing reserves of critical metals, including mechanisms for long-term financing of mining and metallurgical projects.
It is important to guarantee demand for domestic producers through offtake agreements. This is one of the Government’s principal tasks.
This issue must be discussed jointly with the business community, and concrete proposals should be given to me by the end of the year.
Furthermore, experts are pointing to the need to establish a Fund for Non-Ferrous and Rare-Earth Metals.
The ultimate goal is to integrate our country into global production chains. Our export policy must also be aligned with this objective.
The Government must establish strategic partnerships with global leaders in these sectors.
New enterprises must not create obstacles for existing local businesses. This must be considered when attracting investors, following a careful assessment of each region and industry.
We can see the adverse consequences that misguided decisions can produce.
For example, Kazakhstan already has a major metallurgical enterprise, Qarmet.Nevertheless, plans are in place to establish similar production facilities in three other regionswith the involvement of investors. Will there be sufficient market demand for the output of these enterprises? There appears to be no clear answer to this question.
The benefit of such ill-considered decisions is clearly questionable.
Without stronger coordination between government agencies, our economy risks losing its potential. Each region must build on its competitive advantages.
Clearly, the Government’s coordinating role in addressing this issue must be significantly strengthened.
At the same time, regional specialisation must not lead to dependence on a single industry or major enterprise. We must build a complete ecosystem around each region’s core specialisation.
This should include education, applied science, logistics, services, related industries and technology entrepreneurship.
I am confident that the “People’s Construction” programme will help foster the creation of such a system in every region – in other words, what we would call an ecosystem today.
The next issue concerns agriculture. We must make every effort to accelerate its further development.
Last year, the sector grew by almost 6 per cent, while agro-industrial output reached 15 trillion tenge.
Concessional financing increased from 1 trillion to 1.5 trillion tenge compared with the previous year.
However, most of this funding is short-term finance and working capital.
Farmers need a comprehensive financing system that allows them to plan for the long term.
The Government must therefore introduce effective and robust mechanisms to provide farmers with long-term investment resources.
Baiterek Holding has identified promising food-industry projects worth more than 500 billion tenge. To implement them successfully, financing must be provided promptly on affordable and preferential terms, allowing sound projects to proceed without delay.
Furthermore, the time has come to modernise the agricultural sector through technology.
We need to expand domestic production of modern tractors and combine harvesters.
In doing so, we will further improve the efficiency of agricultural production.
Last week, NVIDIA co-founder Jensen Huang, a leading entrepreneur of a new generation, visited Astana and proposed the widespread introduction of artificial intelligence into Kazakhstan’s agricultural sector. In my view, this is a timely proposal that should be implemented without delay.
If our country successfully implements these plans, Eurasia could become a major centre for supplying the world with food in the event of a global shortage or famine.
Our country has extensive tracts of land located near major water sources. Using these areas for irrigated agriculture could increase the yields of traditional crops by a factor of 2 to 2.5.
Any expansion of cultivated land must be carried out exclusively using advanced water-saving and agrochemical technologies.
I would particularly emphasise that the problem of water scarcity in our country requires systematic and decisive action.
First and foremost, we must ensure the widespread adoption of principles governing the rational and prudent use of water – a resource whose value is difficult to overstate in today’s world.
The Government and regional administrations must strengthen control over water consumption, reduce losses in supply networks and stop the misuse of drinking water, particularly at car washes. Using drinking water to wash cars is absurd.
On my instructions, the Government has launched a comprehensive tariff reform in the water sector. This reform must be brought to its logical conclusion.
The responsible use of water must become an essential principle of economic activity.
The full and accurate accounting of water resources requires the comprehensive use of digital tools.
This will enable informed decisions to be made when planning new industrial facilities.
The Government must therefore complete the development of the National Water Resources Information System as soon as possible.
Furthermore, particular emphasis should be placed on developing the deep processing of agricultural products. Successful projects are already being implemented in this area.
For example, farmers in the Kyzylorda Region grow and process corn and soybeans despite the harsh climatic conditions.
In the Turkistan Region, a Chinese company is developing a modern cotton and textile cluster with particular attention to the efficient use of water.
The Government should facilitate the widespread adoption of such best practices across the country and provide investors with timely support.
At the same time, these modern approaches should also be applied comprehensively to livestock farming.
Building on the experience of the North Kazakhstan Region, 71 commercial dairy farms have been commissioned across the country.
Together, these farms have an annual milk production capacity of more than 462,000 tonnes.
In the Akmola Region, a meat production cluster is being developed in line with advanced international practices. Projects of this kind merit support, and the necessary funding should be allocated where appropriate.
Alongside production and processing, we must improve the systems for storing and marketing agricultural products.
Both major holdings and small farms must have guaranteed access to agricultural logistics centres.
More broadly, the “People’s Construction” programme should also support development in this area. This is of strategic importance.
The Government and the Baiterek Holding must therefore work together to develop and adopt concrete solutions.
To develop the key sectors of the economy, priority should be given to projects that focus on the deep processing of products and increased labour productivity. This is the principal requirement.
In particular, we should establish domestic production of construction materials, metal structures and engineering equipment required for major infrastructure projects.
I believe projects of this kind should form the basis of the “People’s Construction” programme.
The use of National Fund resources to finance imports must not be permitted. This is a key requirement.
To give fresh impetus to the economy, we must attract leading international and domestic companies with advanced technologies, relevant expertise and strong access to global markets.
The effectiveness of investment should be measured by the number and quality of production facilities brought into operation and their tangible contribution to the economy.
Competition for investment is intensifying across the world.
To remain competitive, we must make decisions promptly and act swiftly.
However, our system for attracting investors and providing them with comprehensive support lacks consistency and coordination.
The actions of individual agencies and officials are often fragmented and uncoordinated. This leads to a lack of an overall vision, systematic coordination, long-term planning and relevant expertise.
Investment policy must therefore be managed from a single centre.
In my view, it is time to address a long-standing issue and designate an institution responsible for systematically managing investment-related activities.
At present, no such coherent system exists. Several government agencies have been assigned overlapping mandates in this area.
Under current conditions, these approaches no longer meet the demands of the times and have become largely outdated.
The most effective solution could be to delegate a broad range of investment-policy responsibilities to Baiterek Holding.
Meanwhile, the Ministry of National Economy and the Ministry of Foreign Affairs would continue to exercise certain powers related to investment activities.
Another important issue.
I believe most people now recognise the importance of developing Alatau as a city of accelerated development, offering a favourable environment for investment and entrepreneurship.
The key prerequisite for the long-term attractiveness of any international jurisdiction is an effective justice system.
Therefore, Alatau should establish a judicial system that ensures a high standard of justice.
An Investment Court, based on the English common law model, will hear commercial cases.
All other matters relating to the special legal regime will fall within the jurisdiction of the Civil Court.
By the end of January 2027, the Government is to submit to the Kurultai the relevant amendments to the Constitutional Law “On the Special Legal Regime of the City of Alatau”.
I would like to remind you that the investment interests of all reputable and honest entrepreneurs enjoy the strongest and most reliable legal protection: the Constitution.
I would now like to share my views on small and medium-sized businesses.
Their share of gross domestic product has now reached 40 per cent, while their share of investment in fixed capital is approaching 70 per cent.
Small business has undoubtedly become a driving force of the national economy, and this is a significant achievement.
At present, one-third of small businesses operate in trade, highlighting the need to diversify the sector.
The Government must adopt a Comprehensive Plan for the Development of Medium-Sized Business.
The document should set out mechanisms for the long-term financing of enterprises and their technological modernisation.
We must create conditions that enable medium-sized businesses to work closely with large enterprises and sell their products to them.
In any event, the state remains a major purchaser in our economy.
We must therefore improve the involvement of small and medium-sized enterprises in procurement by government bodies and quasi-state companies.
A share of procurement volumes could be reserved for small and medium-sized enterprises.
At the same time, supplier requirements need to be eased.
It is essential to ensure stable “rules of the game” for entrepreneurs.
State oversight is relatively liberal, yet it continues to affect businesses through fines, unscheduled inspections and desk audits that can result in bank accounts being frozen.
This impact can hardly be described as positive.
In the first half of this year alone, the number of violations committed by individual entrepreneurs fell by 34 per cent. Yet the total value of fines increased by almost 11 per cent, while unscheduled inspections rose several dozenfold.
Meanwhile, an analysis of business activity shows that businesses often simply need to be left to get on with their work.
The experience of the 2020–2023 moratorium on inspections of micro and small businesses is instructive. It proved effective.
I propose that members of the Kurultai, together with the Government, discuss whether to introduce another three-year moratorium from 1 January 2027, taking into account all the positive and negative aspects of the previous moratorium.
This step should be seen as a strategic pause to reset the inspection and oversight system and move towards a digital model of regulation.
At the same time, we continue to receive appeals from entrepreneurs who find themselves subject to criminal proceedings for economic offences.
Further steps should therefore be taken to decriminalise economic offences.
We must ensure equal opportunities for entrepreneurs, particularly small and medium-sized businesses, and create the conditions for fair competition.
In some cases, these conditions are not being met.
Domestic producers, particularly in the food industry, face numerous difficulties, including regulatory barriers.
For example, imported products are being dumped on the market, while artificial barriers prevent domestic products from reaching retail shelves. To put it plainly, this is corruption. Such harmful practices must be stopped once and for all.
There is no doubt that this situation significantly weakens the competitiveness of our companies and products.
It is equally clear that unless we take firm action to stop these practices, our economy will suffer.
In other words, protecting business means strengthening the sovereignty of our national economy. It is no exaggeration to say that unlawfully obstructing entrepreneurs is a crime against the state.
We must therefore improve and strengthen the mechanisms for supporting entrepreneurs. This work can also be pursued within trade associations.
Next, Kazakhstan must – and I stress, must – build a digital economy.
As realists who understand our capabilities, we must make the best possible use of new technologies for the well-being of our people.
Construction of the core infrastructure needed to implement the comprehensive Digital Qazaqstan strategy has already begun.
Two supercomputers have been launched, and a third powerful supercomputer will enter service before the end of the year.
The fibre-optic backbone across the bed of the Caspian Sea has been completed, and data centres are being built.
This is only a small part of the work under way to transform our country digitally. We are at the beginning of a long journey towards a new technological era.
To keep pace with the times, we must focus on delivering practical results.
However, we must acknowledge that so far there has been more talk than action. Real digitalisation is sometimes replaced by the automation of existing processes or by staging assorted events.
Digitalisation must not be reduced to purchasing expensive software without understanding its practical value.
In essence, we have only just begun work on commercialising artificial intelligence, tokenising assets and developing blockchain technologies and digital platform ecosystems.
We must develop a programme for the practical use of digital technologies in the economy.
Today, millions of our citizens use online marketplaces, food delivery services, taxi-booking apps and many other services every day, including banking services, where Kazakhstan has, admittedly, moved ahead of many countries generally regarded as advanced.
But we must keep moving forward.
We have everything we need to give a powerful boost to a genuinely productive digital economy.
Our young people are educated and creative, internet access is affordable, and we have built an advanced digital infrastructure.
Today, any citizen can open a bank account, arrange an instalment plan or purchase goods in a matter of minutes without leaving home.
At the next stage of digitalisation, we must move from providing access to services to expanding individual opportunities.
We need to change our approach and look at the tasks before us from a different perspective.
Our goal is to build a truly people’s digital economy.
In the public consciousness, the internet should be seen not only as a space for consumption and entertainment, but also as a virtual realm of creation and work.
For our citizens, smartphones can and should become not so much a means of leisure – an expensive toy that wastes time – as an effective tool for work.
The Government will therefore establish a simplified legal framework for digital employment by the end of the year.
To build a people’s digital economy, it is important that people’s opportunities should not depend on where they live.
Whether they live in towns or rural areas, our citizens must learn to use smartphones as a means of earning a lawful income.
We need to bring together existing government support measures for entrepreneurship and the capabilities of private marketplaces, banks, logistics companies and digital services.
In addition to loans and subsidies, further digital tools are needed to produce and sell goods.
Next year, the Government, together with the business community, must launch pilot digital development projects in several regions to help rural producers establish sales channels for their products.
Successful practices should be scaled up across all regions.
We must fully realise the potential of asset tokenisation, in other words, bringing assets into the digital environment.
This will enable citizens to become co-owners of companies and various assets, while allowing entrepreneurs to raise capital directly, without unnecessary intermediaries.
The strategic goal of building a people’s digital economy is to harness the opportunities offered by modern technologies for the well-being of every citizen.
During this Year of Digitalisation and Artificial Intelligence, we have given a powerful boost to building a progressive and technologically advanced state.
We must now continue this work systematically and build a digital economy powered by artificial intelligence.
The Government, national companies and the creative industries sector must engage fully and actively in this process.
This is a national task of the utmost importance, fully aligned with the demands of the new era.
To build the economy of the future, we must leave entrenched assumptions and outdated approaches behind once and for all.
We must create entirely new foundations for our society.
In essence, this is a continuing national mission directed towards the future and towards securing prosperity for coming generations in a new technological era.
However complex, challenging or even fraught with risks the digital age may be, our aspirations remain unchanged.
They are to build a new kind of state and remain steadfast on the path of modernisation and renewal.
I therefore propose declaring next year the Year of Nationwide Large-Scale Construction.
In every regional centre, district and even village, we must begin building and renovating civilian infrastructure.
This includes roads, airports, railway stations, all types of healthcare facilities and rehabilitation centres for children with special needs.
We must also build centres for creative activities, sports facilities, libraries and scientific centres.
Housing construction will, of course, remain an important task.
Thus, our collective, nationwide response to the approaching age of artificial intelligence is to build – and, I repeat, to build!
The Constitution establishes improving people’s well-being as one of the fundamental principles guiding the state.
I would like to emphasise once again that all these initiatives are being undertaken for the benefit of our people, and especially for the sake of the younger generation.
Another priority is to fundamentally improve the quality of public administration.
Substantial budget funding is being allocated to infrastructure modernisation, comprehensive digitalisation and industrial development. Private investment is also being attracted.
In this regard, I would like to draw attention to the following issue.
As part of the large-scale construction effort, it is essential to select projects carefully, work with reliable companies and closely monitor every stage of implementation.
The state apparatus must be ready to carry out this task with impeccable professionalism.
We must also fundamentally rethink our approaches to macroeconomic policy.
In recent years, the Government has completely reviewed the budgetary and tax systems.
Yet the effectiveness of government policy is judged, above all, by people’s well-being and economic activity.
Our foremost objective is therefore to increase people’s incomes. To achieve this, we must first and foremost tackle inflation systematically.
Inflation is, figuratively speaking, a silent enemy, eroding our citizens’ well-being day after day.
The pace of price increases has slowed somewhat. Nevertheless, inflation remains high.
Above all, therefore, the Government and the National Bank must work together in a coordinated manner. Inflation must be curbed and brought down. This is a task of the utmost importance.
The Government must pursue a carefully balanced fiscal and tax policies with the greatest prudence. It must also create favourable conditions for strengthening the economy’s productive capacity and increasing business productivity.
Financial market regulators must likewise fulfil their responsibilities effectively and to a high standard.
Today, Kazakhstan’s financial system is relatively resilient.
The evidence is clear: the assets of our banks have exceeded 75 trillion tenge, equivalent to 150 billion US dollars.
Deposits have reached a record 52 trillion tenge (105 billion US dollars), with 78 per cent held in the national currency.
This demonstrates the growing value of the tenge.
The important task now is to use these accumulated financial resources effectively to develop the real economy.
In this regard, the time has come for the National Bank, while continuing to ensure price and financial stability, to play a much more active role in initiatives that promote economic development.
Our economy needs long-term financing on a scale that exceeds the capacity of the budget and development institutions.
Banks must play the most active possible role in investment lending to businesses. This is their principal mission.
To achieve this, we need to create the right conditions, including through effective regulation of available liquidity in the banking system. And that liquidity is indeed available.
We have no time for endless debate. We need decisions that will put the country on the path to progress.
We must introduce new mechanisms for long-term lending to key sectors of the economy, involving banks, development institutions, international financial organisations and other sources.
We need to significantly expand the capacity of the capital market.
It is therefore important to encourage private enterprises to make active use of stock exchange instruments.
A critically important task is to mobilise additional sources of financing and strengthen investment discipline.
Specific mechanisms must be included in the Law on the Capital Market currently being drafted.
Particular attention should be paid to creating an integrated national financial ecosystem.
The Kazakhstan Stock Exchange, the Astana International Financial Centre and Alatau City must work in close partnership.
The National Bank and the Government must develop a unified strategy for the development of Kazakhstan’s financial market.
Another way to ensure long-term macroeconomic stability is to put fiscal policy on a sound footing.
The Budget Code adopted last year has helped improve the management of public funds and strengthen financial discipline.
Nevertheless, we must recognise that expenditure is increasing year after year. We therefore need to further improve the quality of public financial planning and management.
Artificial intelligence technologies should be used to prevent unjustified and inefficient expenditure. We must also complete the full digitalisation of the state treasury system. A system for managing budget funds based on common methods and approaches needs to be established.
I expect concrete proposals from the Government and the National Bank.
The next priority is to improve tax policy.
The new Tax Code has laid the foundations for a comprehensive overhaul of the entire system.
However, a reform of this scale inevitably brings to light issues that are difficult to anticipate at the drafting stage.
As a result, businesses encounter difficulties when applying certain provisions.
The Tax Code is not a dogma or sacred scripture; it must not become divorced from reality.
We must therefore resolve contradictions, eliminate ambiguity in the interpretation of its provisions, correct imbalances and remove excessive burdens on entrepreneurs.
The tax system must not deprive businesses of incentives to grow, hinder investment or obstruct job creation.
The Government must therefore listen to businesses and develop a package of targeted amendments to tax legislation.
This must be done carefully so that we do not repeatedly change the rules for businesses. Our legislation has become so cumbersome and difficult to understand that it is a real headache for entrepreneurs.
I would like to address tax fairness separately.
I believe the time has come to discuss introducing a higher tax rate for those with substantial wealth.
Let me stress that no one intends to place any restrictions on lawfully acquired assets. That would run counter to the Constitution itself.
It is about every citizen making a fair and proportionate contribution to the development of our country. It is about fairness.
The Government and the Kurultai must examine this issue and submit proposals.
Fair taxation requires transparency, which in turn requires comprehensive digitalisation.
We must use advanced technologies, including artificial intelligence, to improve tax collection, reduce the shadow economy and lower the risk of corruption.
Under current conditions, the legal system has a particularly important role to play in successfully introducing innovations and increasing the competitiveness of the economy.
The current Civil Code was adopted in the 1990s.
It has undoubtedly fulfilled its historic mission.
It enabled the creation of the basic institutions of a market economy and enshrined the inviolability of property.
It laid the legal foundations for civil relations in a new historical era. Yet even a well-drafted Civil Code was designed for a transitional economy, before the advent of digital technologies.
The world and our society have changed profoundly over the past 30 years.
I therefore believe that a new Civil Code is needed to lay the foundations for a smooth transition to the economy of the future.
It will help provide stable legal conditions for businesses, investors and citizens.
The deputies of the Kurultai, working in collaboration with the Government, should set about drafting this vital document without delay.
I expect the Kurultai to adopt the new Civil Code by the end of next year.
The “People’s Construction” initiative is driven not only by economic objectives, but also by accumulated structural imbalances.
Population growth and internal migration are placing an unsupportable burden on social infrastructure, much of which is already operating at maximum capacity.
This problem did not arise overnight.
In previous decades, it was common practice to conceal mistakes and shortcomings in public administration by substantially increasing social assistance and seeking to appease the public.
State resources were effectively dissipated: support payments were allocated even to quite well-off families, whilst shortages of accessible schools and hospitals rapidly escalated.
This fostered paternalism and a culture of dependency, as well as abuses and corruption in the social welfare system.
It must be clearly understood that an excess of unjustified benefits and allowances is evidence of institutional immaturity and even weakness on the part of the state apparatus, as well as a lack of foresight in securing a favourable future for the nation.
Feigned benevolence towards citizens funded from the state budget is, in truth, pure populism, which cynically masks various schemes running counter to the interests of the people and the sustainable development of the country.
This is the mindset of those who live for the moment, lacking strategic vision and true statesmanship in the broad sense of the term.
Therefore, it is vital to fundamentally overhaul social policy, reorienting it from addressing immediate, short-term issues to achieving strategic goals.
I reiterate: the Government’s main task is to ensure that state assistance is targeted at those who genuinely need it. There are many pressing problems in this area, and the Government must put forward its proposals and solutions.
New approaches are being actively debated in society, and citizens have expressed various concerns. We must not go too far in addressing this sensitive issue.
Any reform must be carefully thought through, measured and based on people’s actual circumstances.
New social support mechanisms and the relevant digital systems must therefore be tested first.
They should be introduced through pilot projects, rolled out in stages and expanded only after their effectiveness has been demonstrated.
Rather than encourage paternalism and make people dependent on benefits, the state must focus on strengthening social infrastructure and expanding citizens’ opportunities.
This will improve the quality of human capital and, most importantly, create conditions for the balanced and comprehensive development of the younger generation.
Kazakhstan has nearly seven million children, accounting for 34 per cent of the population.
More than 330,000 babies are born each year.
Such rapid population growth requires healthcare facilities to be built ahead of demand.
Eight modern perinatal centres will be built in the first phase of large-scale construction.
In addition, seven multidisciplinary children's hospitals will be established in the cities of Atyrau, Aktobe, Almaty, Shymkent, Kaskelen, Semey, and Aktau, alongside two further medical facilities in Astana.
Alongside budgetary funding, private capital should be extensively engaged in this work.
Public-private partnership (PPP) projects already initiated must be successfully delivered. Such forms of partnership will help increase the volume of private investment directed towards social infrastructure.
Most importantly, decisions must be made swiftly, without unjustified procedural delays.
Furthermore, we attach particular importance to modernising the primary healthcare system. From this perspective, it is essential to expand the remit of general practitioners and gradually increase funding for this system.
I instruct the Government to increase pay for district-level primary healthcare specialists by up to 40 per cent, depending on their continuous length of service, from 1 January 2027.
This will increase the incomes of more than 77,000 specialists.
In parallel, we will continue to raise the minimum wage incrementally.
I instruct the Government to increase the minimum wage from 85,000 to 110,000 tenge.
This measure must take effect from 1 January 2027 and will raise the incomes of nearly 1.8 million people, including more than 370,000 public sector employees.
Another pressing topic is inclusive education, to which we must pay special attention.
There are more than 237,000 children with special educational needs in Kazakhstan. Unfortunately, their number has been growing in recent years.
Therefore, the Government, in cooperation with regional governors (akims), must develop the relevant infrastructure.
This area must not be overlooked during large-scale construction works.
We must systematically address the shortage of specialists and improve early identification of children with special educational needs.
The Qazaqstan Halqyna Foundation should actively support this work.
There is also considerable public discussion about shortcomings in education reform.
In general, every change must be aimed at simplifying teachers' work and reducing their excessive administrative burden.
It is no secret that this objective is not being fully implemented in practice.
Previously, there was an excess of paperwork. Now it has been replaced by endless reporting on various platforms and digital systems.
A teacher’s primary mission is to provide children with a quality education and raise a thoughtful generation.
We must put a stop to superfluous duties that hinder the fulfilment of these tasks.
We must protect the interests of teachers.
Recently, there has been an increase in cases of pupils swearing at their teachers, sometimes even using physical force.
In such situations, school leaders often put pressure on teachers as well. This is wrong.
Every issue must be examined thoroughly and comprehensively.
Responsibility lies equally with families, pupils, teachers and schools.
The Ministry of Education must keep this matter under strict review.
Distinguished Members of the Kurultai
and Members of the Government!
As I have already noted, our country is entering a new historical cycle.
At this critical juncture, we must critically re-examine all national plans and strategies.
We must clearly understand the “baggage” with which we will approach the next significant milestone of our Independence.
A vision of distant horizons will allow us to determine our current tasks and priorities, ensuring we firmly adhere to our sovereign strategic course and bring our constructive plans to fruition.
Therefore, the Presidential Administration, together with the Agency for Strategic Planning and Reforms, and with the involvement of research institutions, particularly the Kazakhstan Institute for Strategic Studies, should develop a document setting out a long-term vision of the country’s development priorities within the next year. I believe Members of Parliament could also make a valuable contribution to this document.
However, this extensive work must begin with the reform of the public administration system.
The entry into force of the Constitution has renewed the country’s political system. At the same time, the tasks facing state bodies have naturally become more complex.
There is now an urgent need to reform public administration on the basis of a new development strategy.
A key objective in this process must be to enhance the efficiency of the entire state apparatus and every individual civil servant.
First, management structures at every level – from the Government to rural akims – must be reorganised.
They must be adapted to the demands of digitalisation and the use of artificial intelligence.
Government bodies must be encouraged to put forward well-considered initiatives and take decisions. They must clearly understand their own powers and how the entire state apparatus operates.
Artificial intelligence should help us end the duplication of functions and eliminate structural imbalances.
We must rid the state apparatus of unnecessary bureaucracy and everything that slows decision-making and hinders progress.
Civil servants must set an example of professional competence. Unfortunately, we are not yet seeing this.
Therefore, new ethical principles for civil servants should be drawn up.
In their work, civil servants must be guided by the Constitution and serve their country and people.
We are not talking about minor or cosmetic changes, but about genuine reform that will require a range of legal and financial measures.
The Presidential Administration must submit a comprehensive plan for the reform of the public administration system by 1 June 2027.
In a word, the public administration system must be modernised and adapted to a new economy grounded in digital technology and artificial intelligence.
We have one overarching goal: to build a Just, Strong, Clean and Progressive Kazakhstan.
We have entered an era of immense opportunities alongside profound risks.
It is precisely in such fateful periods that the character of a nation is forged.
Inertness and hesitation are tantamount to historical defeat.
The only right response to the challenges of our time is to act with strategic foresight and shape the architecture of Kazakhstan’s future.
Otherwise, we risk falling into the rut of endless catch-up development.
The highest measure of a state’s progress – and the chief beneficiaries of all reforms – are its citizens.
Therefore, the core of my strategic course is the idea of Justice.
Entering this new historical cycle, we are embarking on the construction and renewal of our entire civil infrastructure.
Over the coming years, a construction boom will reach every region.
As I have said, we will build motorways, industrial and energy facilities, railways, bridges, utility networks, hydraulic structures, schools, hospitals, sports complexes and, of course, cultural facilities.
The construction of modern infrastructure is linked to the opening of dozens of new production facilities and, above all, the development of a people’s digital economy.
Thus, through discipline, responsibility, and hard work, we will together transform the appearance of our towns and villages in the very near future, making our common home – the Republic of Kazakhstan – both more powerful and more attractive.
Adhering to the principle of “Law and Order,” and working conscientiously, we will unfailingly achieve all our set goals and leave a worthy heritage to our descendants.
I repeat what I have said on more than one occasion: amidst unprecedented global challenges, we must strengthen the unity of our nation and the social foundation of our society in every possible way.
This is the ultimate guarantee of the success of our strategic plans.
I am confident that, by following this path, Kazakhstan will secure its rightful place in the vanguard of global civilisation.
In general, improving laws and strengthening political institutions is not enough to ensure the success of reforms. Sustainable progress depends, above all, on changing the way citizens think and developing a new social ethic.
The concept of Adal Azamat (Responsible Citizen) must become an integral part of our lives.
As the saying goes, “Әрекет түбі – берекет” – “Work is the foundation of prosperity.”
The value of active, constructive patriotism cannot be overstated.
To be patriotic means to respect the law, maintain order and work tirelessly for the good of the country.
I see Kazakhstan as a just and progressive state, a united country offering equal opportunities to everyone.
I am making every effort to achieve this goal and will continue to do so.
The driving forces of the modern age are knowledge, science and innovation.
Countries that master new technologies and artificial intelligence and put them fully to work will be at the forefront of progress.
Our country will always need outstanding scientists, highly skilled engineers, wise teachers and qualified doctors.
I place great hopes in patriotic young people who will lead our nation forward.
Dear Compatriots!
Today, I have spoken in detail about the large-scale changes under way in our country and the important initiatives that will lead us towards a brighter future.
We must accomplish all the historic tasks before us.
We will build a Just Kazakhstan – a prosperous society offering extensive opportunities to every citizen.
I wish you all prosperity and success!
May our Homeland – the Republic of Kazakhstan – prosper!
