GOVERNMENT: Kazakhstan to start implementation of Nurly Zhol Program

Sagintayev made it public at the enlarged session of the Cabinet on Wednesday (February 11) in the Akorda presidential residence. President Nursultan Nazarbayev, who opened the session, stressed ‘there is no economic crisis in Kazakhstan. "All the problems that arise are due to the impact of external markets. That is why some changes are to be made, but they won't affect social obligations of the country," the President said. First Vice Prime Minister Sagintayev also pointed out that 86 projects had been selected in the housing sector within the framework of the Nurly Zhol Program. Public budget loans will be issued to regions of the country this March. The implementation of the projects will start in April. In order to improve Kazakhstan's standing in the Doing Business Ranking, a new package of legislative initiatives has been prepared. Besides, the law that will dramatically improve conditions for doing business is to come into effect in Kazakhstan this year. Mr. Sagintayev also talked about measures undertaken to reduce impact of the falling ruble on Kazakhstani economy. At the session, Minister of Energy Vladimir Shkolnik reported on the measures to optimize the taxation of subsoil users that will be taken before the end of March to maintain the level of oil production. According to him, all domestic extracting companies have taken steps to cut expenses in the light of falling oil prices. Chairman of the National Bank Kairat Kelimbetov informed that the Government and the National Bank have developed a program of dedollarization of the Kazakh economy. In conclusion, the Head of State instructed the Government to cut down expenditures of the republican budget by 10%. President Nazarbayev also tasked national holdings to develop anti-crisis measures as part of the Nurly Zhol Program. In particular, Samruk-Kazyna National Welfare Fund will reduce its operating costs by 337 billion tenge. Savings from spending cuts will total $4 billion. The same day Prime Minister of Kazakhstan Karim Massimov chaired the extraordinary sitting of the Cabinet and urged members of the Government to fulfill President Nazarbayev's instructions without delay. "The Head of State expects that we will fulfill the instructions given at the session. It is high time for us to continue our work," Prime Minister Massimov said, addressing the members of the Cabinet.