GOVERNMENT. Weekly Review: “We should keep prices down to let people buy goods at normal prices” – PM Massimov

The process of economic integration, aimed at establishing single economic space, requires the alignment of the national customs legislation with the Union's Customs Code.

For this purpose Kazakhstan developed a new draft Customs Code, which was presented at the Government's sitting on May 11. Prime Minister Karim Massimov noted importance of passing the draft code in time in order to let all participants of the country's foreign economy get profit from introduction of the new Customs Code. "This is one of the most important documents which can be compared with the Tax Code, Budget Code", Massimov noted.

The Kazakh Government approved draft Resolution on implementation of the Business Road Map-2020 program introduced by Minister of Economic Development and Trade Zhanar Aitzhanova. As the Minister noted, it is suggested to approve following rules: remuneration rate subsidization on banks' credits on all three directions of the program: "Support of new business initiatives", "Improvement of business sector" and "Support of export-oriented productions" and partial guaranteeing bank loans by Damu Fund. Besides, in accordance with the draft Resolution the Ministry of Economic Development and Trade, local executive bodies, Damu Fund and second-tier banks will rely on model agreements on cooperation during agreements conclusion.

The Resolution confers the documents regulating the conditions and mechanisms of providing government support to business as well as the order of interaction among the participants of the Program, their rights and obligations.

The Minister also said that the Rules provide for standard forms of applications and reports to be submitted by businessmen, the list of necessary documents and standard agreements for receiving subsidy and guaranteeing other measures of government support.

Thus, a legal and regulatory framework for realization of the Business Road Map 2020 program has already been developed to date. KZT 30 bln has been envisaged in the national budget for its implementation in 2010.

Summing up the results of the sitting Prime Minister Karim Massimov noted that according to preliminary data, the GDP growth made up 7.6 percent in the first quarter.

"We lived in the permanent crisis which moved from one field to another. Now the light at the end of the tunnel is clearly visible. Today the Statistics Agency reported me on results of the first four months - the GDP growth made up 7.6 percent. And it is a good result", K.Massimov said.

Prime Minister Karim Massimov set a new task to the Government - to ensure the GDP growth at the level of 7 percent in 2010.

He charged the Ministry of Economic Development and Trade to evaluate baselines which we need to pull up for supporting the GDP growth at the current level.

"We should look where we have more reserves", the Premier noted.

According to him, last year the regions governors fulfilled this work well. They found additional funds and this played great role in positive outcome of the country's economy in 2009.

"Now there is a new task - to ensure sustainable growth - 7 percent", K.Massimov said.

This week Head of the State Nursultan Nazarbayev received Minister of Information and Communications Askar Zhumagaliyev.

The Minister informed the President of the course of implementation of the measures on increasing competitiveness of domestic media and development of Kazakhstani internet resources. The issues regarding introduction of digital TV in Kazakhstan were also discussed.

"The President charged the Ministry to take the issues on increasing competitiveness of domestic information space under special control", A. Zhumagaliyev said at a briefing.

On May 13 Prime Minister of Kazakhstan Karim Massimov held a number of international meetings in Ukimet Uyi. During the talks with UAE Minister of State for Foreign Affairs Anwar Gargash the prospects of further expansion of bilateral trade-economic and cultural-humanitarian cooperation were considered. A. Gargash also informed of the agenda of the 4^th sitting of joint Kazakh-UAE Intergovernmental Commission for trade and economic cooperation held in Astana.

The prospects of economic cooperation between Kazakhstan and India were discussed at the meeting with Indian Foreign Minister Somanahalli Mallaiah Krishna.

Next day, May 13, Prime Minister of Kazakhstan Karim Massimov met with Ross Mauri, General Manager for IBM Power Systems, in Ukimet Uyi. The current status and prospects of the company's work in Kazakhstan were discussed. R. Mauri informed about the plans to start joint realization of scientific-educational programs and education of IT specialists in Kazakhstan. He also noted the company's readiness to open a Linux Education Center and provide a supercomputer for educational process and scientific research planned to be held in the universities of Kazakhstan.

The sides pointed out a huge potential of mutually beneficial cooperation and expressed mutual interest in joint implementation of information projects in various spheres of economy.

On Friday, May 14, the Ministry of Economic Development and Trade of Kazakhstan, akimats of all regions, Damu Entrepreneurship Development Fund and the Association of Financiers of Kazakhstan have entered into agreement within implementation of Business Road Map-2020 program. Prime Minister Karim Massimov participated in the ceremony of signing the documents.

"The documents signed today are aimed at providing equal approach to all participants of the program, ensuring transparency while making decisions on maintaining business", Minister of Economic Development and Trade Zhanar Aitzhanova said.

The same day First Deputy Prime Minister Umirzak Shukeyev and Minister of Transport and Communications Abelgazy Kussainov got acquainted with implementation of the Western Europe-Western China project within a working visit to Zhambyl oblast.

As the press service of the Ministry of Transport and Communications informs, the 2010-2012 approved budget foresees KZT 499.0 bln for this project implementation.

In 2009 there were signed agreements on borrowings amounting to USD 3 mln with four financial institutions, in the second half year it is planned to sign a loan agreement with the Asian Development Bank on the third tranche to the amount of USD 173 mln, with the Islamic Development Bank - on the second tranche to the amount of USD 224 mln and with the Japan International Cooperation Agency (JICA) - to the amount of USD 68.3 mln.

The total length of the Western Europe-Western China international corridor is more than eight thousand kilometers; over two thousand of them run through the territory of Kazakhstan. The construction is scheduled in the five regions of Kazakhstan. To date the works are underway in three regions: Zhambyl, Kyzylorda and Aktobe. South Kazakhstan and Almaty regions will start construction in July. 12,000 workers and 3,000 units of equipment have been mobilized. By September the construction will unfold in full force and will involve 50,000 workers and 10,000 units of equipment.