From infrastructure to AI: President Tokayev’s vision for Kazakhstan in a changing world

The address came as governments around the world reassess supply chains, energy needs and the infrastructure required for technological growth. For Kazakhstan, these changes present an opportunity to use its geographic position, natural resources and financial reserves to build a more diversified economy. They also place greater demands on the state, which must translate investment into productive businesses and better public services.

The speech marked a shift in emphasis within Tokayev's reform agenda. Following years of political and institutional changes, including the adoption of a new Constitution approved by 87.15% of voters in March, the President concentrated on what those institutions are expected to deliver.

Infrastructure as an economic strategy

The centerpiece was the People's Construction program, under which approximately 6.5 trillion tenge will be allocated from the National Fund through 2029 to modernize social, transport and engineering infrastructure. Some 1.5 trillion tenge is intended for projects during the remainder of 2026 and the first two months of 2027. Initial plans include around 70 healthcare facilities and nearly 50 education, sports and cultural facilities, along with improvements to utilities and transport networks. Tokayev proposed designating 2027 the Year of Nationwide Large-Scale Construction.

Kazakhstan's priorities reflect a wider international return to infrastructure investment. In 2021, the United States enacted the $1.2 trillion Bipartisan Infrastructure Law, including approximately $550 billion in new federal investment in transport, energy and communications. The programs differ considerably in scale and financing, but both recognize that productivity and technological competitiveness depend on reliable physical infrastructure.

Tokayev's initiative has a particularly strong domestic industrial component. He instructed that National Fund money should not be spent on imports, calling instead for greater use of Kazakhstan-made construction materials, metal structures and equipment, with local small and medium-sized enterprises involved in implementation. This could allow investment to generate demand beyond the construction industry, provided domestic suppliers can deliver the required quality and capacity.

The President also stressed that facilities must reflect the needs of individual regions. This is an important consideration for a program of such magnitude: economic returns will depend not only on how much is built, but on whether the new infrastructure is useful, affordable to operate and completed on schedule.

Energy security in the age of AI

One of the address's strongest economic connections was between artificial intelligence and electricity. Digital competitiveness is often discussed in terms of software and talent, yet data centers and advanced computing also require dependable energy supplies, communications networks and substantial capital investment.

Tokayev said Kazakhstan's annual generation of 123 billion kilowatt-hours was insufficient for its industrial and digital ambitions. He called for a sustainable electricity surplus by 2029, an updated energy balance through 2035 and accelerated development of new generating capacity. Construction of the Balkhash nuclear power plant could begin in 2027, while preparations for the proposed Moyinkum facility are expected to advance. The President also raised the possibility of a strategic uranium reserve and stressed the importance of developing domestic nuclear expertise.

He pointed to two supercomputers already launched, a third expected by year-end and the new fiber-optic connection across the Caspian Sea. These projects bring together two sides of technological development: the computational infrastructure needed for AI and the international connectivity needed to make it useful.

The address went beyond infrastructure to consider who benefits from digitalization. Tokayev called for a simplified legal regime for digital employment and pilot projects enabling rural producers to sell through online platforms. If the measures broaden access to markets and employment, digitalization could become a source of income rather than merely a more convenient way to obtain services.

Investment confidence and effective governance

Tokayev also placed considerable emphasis on the institutions that shape investment decisions. His proposals on taxation, business inspections and commercial justice share a central objective: make the rules more predictable while allowing the government to respond to practical difficulties.

Discussing the new Tax Code, the President said it was "not dogma" and directed officials to correct problematic provisions without subjecting businesses to continual rule changes. He also proposed considering a three-year moratorium on inspections of micro and small businesses from January 2027. The proposed pause, not yet enacted, would accompany efforts to strengthen digital oversight and reduce unnecessary administrative pressure.

The announcement concerning Alatau was particularly relevant to Kazakhstan's international investment ambitions. Tokayev proposed establishing an investment court based on the English common law model to hear commercial disputes, with other cases related to the city's special legal regime assigned to a civil court. The government must submit the necessary legislative amendments to the Kurultai by the end of January 2027.

The proposal addresses a consideration that financial incentives alone cannot resolve: investors need confidence that contracts will be upheld and commercial disputes decided predictably. Kazakhstan already operates a common law-based court at the Astana International Financial Centre, giving it relevant institutional experience. Applying a comparable approach in Alatau would build on an established legal framework rather than introduce an entirely unfamiliar model. Its effectiveness will depend on judicial independence, consistent judgments and their enforcement.

More broadly, Tokayev instructed the Presidential Administration to prepare a public administration reform plan by June 2027, emphasizing digital tools and clearer responsibilities. The emphasis on implementation links the country's institutional modernization with the practical requirements of economic development.

Growth that reaches households

The economic agenda included measures with direct implications for household incomes. Tokayev instructed the government to raise the minimum wage from 85,000 to 110,000 tenge on January 1, 2027, potentially benefiting nearly 1.8 million people. He also called for salary increases of up to 40% for eligible primary healthcare workers based on continuous service, affecting more than 77,000 professionals.

The President nevertheless identified inflation as a threat to living standards and called for closer coordination between the government and the National Bank. That warning matters alongside a construction program large enough to increase demand for labor, materials and financing. Higher nominal incomes and new facilities will have a greater effect if prices remain under control.

Kazakhstan enters this investment cycle with significant financial assets. According to figures cited in the address, gold and foreign exchange reserves together with National Fund assets exceed $130 billion. Tokayev argued that public resources should help attract private capital rather than replace it, and urged commercial banks to expand long-term lending to productive businesses. The challenge is to turn this financial capacity into sustainable growth without placing excessive pressure on the budget.

Kazakhstan's place in global supply chains

The international dimension of the address extended beyond technology. Tokayev called for Kazakhstan to move from serving mainly as a transit corridor between China and Europe toward operating logistics companies, consolidation hubs and digital freight systems. Capturing more value from transport would make geographic advantages more useful to the domestic economy.

A similar approach shaped his proposals on critical minerals. The President called for modern geological exploration, a national system for managing strategic metal reserves and partnerships connecting Kazakhstan to more advanced manufacturing. In agriculture, he emphasized better irrigation, long-term finance, modern processing and opportunities for applying AI.

These priorities fit Kazakhstan's multivector economic approach: maintain relations with different markets while building capabilities at home. For a middle power, resilience depends not only on maintaining diverse international partnerships but also on developing the infrastructure, industries and expertise that make those partnerships economically valuable.

From priorities to results

The address set several near-term checkpoints. An initial list of infrastructure projects is due by the end of 2026, Alatau's legislative amendments by January 2027 and the public administration reform plan by June 2027. Larger construction and energy goals extend through 2029.

The proposals are ambitious and interconnected. Better electricity supply would support industry and AI, more dependable commercial institutions could encourage investment, and infrastructure spending could stimulate domestic production while expanding public services. The results will depend on how effectively government agencies, businesses and financial institutions coordinate their work.

Tokayev's 2026 address thus places Kazakhstan's domestic development within a changing global economy. Its distinctive feature is the attempt to bring infrastructure, technological modernization, investment confidence and household well-being into one economic agenda. The measure of that approach will be whether these policies translate into lasting gains in productivity, competitiveness and living standards.

Earlier, Qazinform reported that Kazakh President Kassym-Jomart Tokayev warned of growing global tensions, a deepening crisis of mutual trust among major powers and the declining role of international law.