Weekly review: Manufacturing industry to eye rapid expansion of production in 2011-2015

said for this purpose it is crucial to provide 7% annual GDP growth rates. The real economy development indexes are defined with due account for growth indicators of industries through investment projects stipulated in sectoral programmes for 2010-2014. Additional investment projects in conformity with the updated Industrialization Map which numbers 474 projects and new production lines were also taken into account. Those indicators were stemmed from the world business trends forecasts assuming Brent oil prices at USD 80 in 2011, USD 70 in 2012-2015.

The volume of gross agricultural production in 2011-2015 should grow by an average of 4-5% annually. Kelimbetov noted that growth rate of industrial production in general is expected to increase from 6% in the current year to 9.1% in 2015. Growth rates in the processing industry (average over 10% per year) should exceed growth in the mining sector," the Minister added.

"Growth in the real economyr will promote increase in the volume of services provided. Increase in the volume of trade is estimated at the level of 12 percent, in 2012-2015 - 8-10 percent," he noted.

Increase in volume of industrial production will promote growth of transport services by seven-eight percent annually. The information and communications services should increase annually by seven-nine percent.

The real GDP growth is measured at the level of 7% in 2011, 6.9% in 2012, 6.5 in 2013, 7.1% in 2014, and 7.4% in 2915. It grows an average by 7% annually.

The volume of employment should expand by 2015 up to 8, 5 mln people. And the forecast growth in foreign trade turnover in 2011-2015 is to be more than 7% per year.

According to K. Kelimbetov, the above indicators are to be fixed in strategic plans of the state agencies in order their achievement will become direct responsibility of every manager. There should be no shortage of investment, human resources, energy resources and modern infrastructure either.

The Minister also suggested a package of measures aimed at fulfillment of the President-set tasks o how to improve the country's business climate. In particular, he said it is essential to update means of control and supervision and business subjects checking procedures.

Following the results of the discussions held the document prepared by the Ministry of Economic development and Trade was approved.

As the PM Karim Massimov noted for the past four months GDP grew by 6.9%, this fact buoys up certain optimism.

With a view to fluctuation of oil prices, the Government is working out a corresponding action plan in case of their decrease. The plan will be submitted on May 18.

On Wednesday Astana held the 1^st Congress of Mathematics Teachers during which Minister of Education and Science Bakytzhan Zhumagulov informed that the expenditures for education in 2011 would make about KZT 900 bln that is 4.2% of the country's GDP. "Thus, we get closer to the standards recommended by the UNESCO - 5-6 percent of the GDP of the country", he said.

On Thursday, May 12, Prime Minister Karim Massimov met with Vice President of the Asian Development Bank Xiaoyu Zhao. On the same day, Minister of Economic Development and Trade Kairat Kelimbetov, Chief of Entrepreneurship Development Fund 'Damu' Lyazzat Ibragimova and Vice-President of the Asian Development Bank (ADB) Xiaoyu Zhao signed a framework agreement on a $500 million multi-tranche financing facility for the development of Kazakhstan's small and medium businesses. It is planned that till the end of this month 'Damu' Fund will receive the first tranche of USD 150 million. This will be a medium-term loan for 5 years at a fixed rate of Tenge. ADB loans will be extended to all regions of Kazakhstan. At least 40% of all loans must be located outside the cities of Almaty and Astana.

Yesterday K. Massimov had a telephone conversation with his Russian counterpart Vladimir Putin. The parties discussed bilateral economic cooperation, the course of integration processes and the upcoming session of the CIS Council of heads of government in Minsk.

At yesterday's conference in Almaty President Nursultan Nazarbayev gave several instructions to the municipal akimat. Thus, the city police were charged to activate fight with crimes. The Ministry of Education and Science and the akimat were charged to solve the issue of construction of cheap dormitories for the students.

Today, May 13, the Head of the Kazakh Government met with Victor Vekselberg, the President of Skolkovo Innovation Center. Issues of cooperation with the Skolkovo Development Foundation were discussed at the meeting.

Chairman of the Tax Committee of the Ministry of Finance Daulet Yergozhin informed today the senators of the work on tax administration improvement. According to him, 2010 budget revenues plan has exceeded the target.

D. Yergozhin noted that in accordance with the President's instructions, tax burden on non-primary sector is reduced today. "For instance, in 2005-2010 tax burden on the non-primary sector was reduced from 20.9% to 12.1%", he added.

"The measures we have launched allow Kazakhstan developing competitive fiscal system which is attractive for foreign investors", he resumed.