Dear Members of Parliament and Government!
The world has entered a new historical era, which will clearly not be easy for all humanity. Mutual contradictions between global powers and interstate associations are escalating. Due to the escalation of tension and aggressiveness in international relations, the number of wars and conflicts is increasing.
In the domestic and foreign policies of some countries, trends of extreme nationalism are strengthening. Disproportions and inequality in global economic development are growing: some states are falling further behind, while others are achieving outstanding progress in the field of artificial intelligence.
The erosion of international law is becoming increasingly noticeable, with the role and status of the United Nations Organization in addressing key contemporary issues being undermined. Ecological and man-made disasters are becoming more frequent, causing enormous losses to national economies.
The Western concept of multiculturalism, interethnic and interreligious harmony is experiencing a crisis. The foundations of national cultures and traditions are being shaken under the influence of globalist destructive forces. The migration crisis is intensifying, with growing flows of refugees, human and arms trafficking, and drug traffic.
Completely new types of threats to humanity's security have emerged, including those related to the use of extremely dangerous weapons based on artificial intelligence. There are other factors indicating a fundamental change in the geopolitical paradigm. In other words, a new world order is emerging.
Kazakhstan is an integral part of the global community, a country located in the very center of the Eurasian continent. Despite global instability, we have taken a decisive step into the era of total digitalization and artificial intelligence.
My main mission is to ensure stable socio-economic development and security for Kazakhstan in this turbulent, danger-filled time. Our younger generation must live in happiness and prosperity. To achieve this, we, as a united nation, are obliged to work diligently. This is our common cause, our civic and patriotic duty.
No matter how difficult it may be, we must undoubtedly succeed. There is no other choice, as the future of the country and the fate of our people depend on it. Therefore, we must approach all reforms in a balanced and thoughtful manner, paying special attention to their high-quality implementation.
As you know, thanks to the large-scale transformations carried out in recent years, our political system has become more progressive and open. Citizens' mentality and consciousness are changing toward greater trust in state institutions. Principles of Rule of Law, Justice, and Order are being established in society. However, enormous work still lies ahead in modernizing society.
Comprehensive economic reforms have been launched in the country. Significant investments are being made in infrastructure construction and the opening of new productions. It is obvious that all these steps are aimed at improving the people's well-being and strengthening the country's potential.
The rapid development of artificial intelligence is already influencing people's worldview and behavior, especially the youth. There is no other alternative, as this process is radically changing the world order and the lifestyle of all humanity. We must be ready for this. We need to act decisively; delay threatens the most severe consequences. Therefore, I have set a strategically important task: to transform Kazakhstan into a full-fledged digital country within three years.
On the basis of large-scale digitalization and active implementation of artificial intelligence technologies, we must modernize the economy. As a first step, we should accelerate the adoption of the Digital Code. This document should define key directions of digitalization, including artificial intelligence, platform economy, use of big data, and other aspects.
To become part of the new technological paradigm, we will need to restructure the entire system of public administration, significantly increasing its transparency, efficiency, and human-centeredness. Therefore, I believe it is necessary to establish a Ministry of Artificial Intelligence and Digital Development on the basis of the existing profile ministry, headed by a specialist at the level of Deputy Prime Minister.
The Government is tasked with ensuring the total implementation of artificial intelligence to modernize all spheres of the economy. To increase Kazakhstan's competitiveness, we must review our approaches to work. With this in mind, I would like to focus on the following key tasks.
FIRST. Despite the intensification of global competition for capital, our country must attract large investments.
We need to launch a new investment cycle. The current policy in this area cannot be called effective. A significant portion of funds goes to raw material sectors.
Overall, this is not bad; we need such investments. But now a different task stands before us – to direct investments into the manufacturing industry. Therefore, the Government must review investment policy. If necessary, preferences can be provided for investors working in high-tech areas.
Along with this, it is necessary to equally support both state investments and large-scale private initiatives. We will have to work on a broad front with large, medium, and small investors. We need to clearly define where, why, and in what volume we need funds. The "investment order" should be formed in accordance with the needs of the production sector.
A cumbersome and fragmented system of interaction with investors has developed in the country. It inevitably leads to bureaucracy and duplication of functions. In the current difficult situation, attracting investments is a priority task that requires new approaches from us.
I want to particularly note that in any case, all organizational work on attracting investments is fully entrusted to the Prime Minister. There is no need to create a new ministry. However, it is striking that the word "investments" is absent from the name of any state structure. This issue is under the jurisdiction of three or four institutions and finds no resolution. Therefore, I give the Prime Minister ten days to develop specific proposals. In addition, I instruct the Government to develop an action plan for radically updating the investment attraction system in the shortest possible time.
In my opinion, it is time to rename the Committee for the Return of Illegal Assets of the General Prosecutor's Office to the Committee for the Protection of Investors' Rights. It must be said that the General Prosecutor's Office has done good work with owners of illegal assets; about 850 billion tenge have been returned to the treasury. These funds have been directed to building ten schools and four sports facilities, as well as constructing and modernizing 235 healthcare facilities and 177 water infrastructure objects. Additional sums are expected to flow into the republican budget.
The principles of providing tax preferences to investors need to be carefully examined and applied reasonably, giving preference to projects significant for the country's economy and profitable ones. Overall, the mechanism of investment agreements has proven itself well.
To create additional sources of investment, it is necessary to rethink the role of the National Fund as an instrument of sustainable development. The Fund's resources should be thoughtfully used to finance promising small projects with high market potential in our country.
The most important thing is to approach the allocation of funds responsibly. If necessary, international managers and investors with high-quality expertise can be involved in this work.
The Government, together with the National Bank, must develop a program for investing in high-tech sectors of the economy with a volume of up to one billion dollars.
To successfully launch a new investment cycle in financing the real sector, second-tier banks need to be more actively involved. This issue has been actively discussed for a long time. It is time to make specific decisions.
Today, banking assets and capital in Kazakhstan are on average several times more profitable than in developed countries. This is because it is more profitable for domestic banks to invest in low-risk instruments than in lending to the economy. This issue has been raised multiple times by deputies and experts. The National Bank and the Government need to urgently find effective tools to involve banks' free liquidity in economic circulation.
An important step in this direction will be the adoption of a law on banks that takes into account technological changes and the needs of the economy. The law should provide ways to strengthen competition and attract new participants to the market, as well as issues of promoting fintech and liberalizing the circulation of digital assets.
The Government, together with the Agency for Regulation of the Financial Market, should comprehensively work on this bill. I ask the deputies to adopt it by the end of the year.
The formation of a full-fledged ecosystem of digital assets should be accelerated. This is already facilitated by the introduction of the digital tenge, which is currently used in financing projects from the National Fund. Now it is time to scale the use of the digital tenge within the republican and local budgets, as well as the budgets of state holdings.
Taking into account modern realities, the focus should be on crypto assets. On the basis of the National Bank's investment corporation, a State Fund for Digital Assets should be created, which will accumulate a strategic crypto reserve from the most promising assets of the new digital financial paradigm.
Along with the obvious advantages and opportunities of total digitalization, including in the banking sector, it also carries certain challenges. In recent years, one of the most serious threats to the financial security of the state and citizens has become online fraud. To counter cybercrime, an anti-fraud center has been created, biometric identification has been introduced, and the responsibility of banks, microfinance organizations, and communication operators for preventing fraudulent operations has been strengthened. But the problem requires constant attention and improvement of the work of authorized bodies.
An intellectual system for countering cybercrime needs to be built. If necessary, adjustments should be made to legislation and the practice of law enforcement agencies.
In many dynamically developing countries, poles of attraction for investments and technologies have become so-called cities of advanced development. Our new center of business activity and innovation is intended to be the city of Alatau. For the implementation of this essentially nationwide project, territory has been allocated, initial planning has been completed, and key infrastructure networks have been connected.
During my recent visit to China, multibillion-dollar agreements were concluded with world-class companies. One such company participated in the construction of the global technopolis Shenzhen and will be directly involved in the implementation of the Alatau City project.
The next step should be to create a solid institutional foundation for Alatau City. It is necessary to prepare a draft Decree on granting the city special status with direct subordination to the Government within ten days. Then, within no more than six months, a separate law should be adopted specifying the city's management regime, financial model, and other important aspects.
I emphasize that special legal status is not a privilege, but a necessary measure or tool, without which everything planned risks remaining on paper. Alatau City should become the region's first fully digital city – from the application of Smart City technologies to the possibility of paying for goods and services with cryptocurrencies. The city will embody the image of Kazakhstan's future, combining technological progress with the most comfortable living environment.
Next. Special economic zones play a special role in attracting investments to the regions, but the work of most of them remains unsatisfactory. This has been said more than once.
To increase the efficiency of SEZs, the Government, based on thorough expertise, should prepare for decisive measures. Private companies, including foreign ones, can be involved in managing special economic zones.
Social-entrepreneurial corporations should also be key drivers of regional economic growth. However, in practice, many SECs are limited to managing communal property and implementing minor projects that do not significantly impact regional economies. The Government needs to transform such corporations into full-fledged development institutions.
Successful attraction of investments is the result of coordinated work not only of central but also local executive bodies. To consolidate the direct responsibility of all akims, an index of regional investment attractiveness should be introduced on the basis of the Agency for Strategic Planning and Reforms. Independent experts may be involved in this work.
The most important key factor in creating a favorable investment climate is macroeconomic stability. But today the main problem is high inflation, which "eats up" economic growth indicators and population incomes. There is no ready recipe for solving this problem; most states face it, it is essentially universal, but in our conditions it has acquired a particularly acute character.
We need to break out of this macroeconomic vicious circle. To overcome difficulties that did not arise yesterday, we should rely on advanced global experience, being ready to take responsibility for unpopular measures.
The Government and the National Bank must act as one team facing a nationwide task. Now is not the time for tug-of-war.
SECOND. It is time to give new impetus to the development of the manufacturing industry.
Over the past five years, we have achieved certain results. Gross value added in the manufacturing industry has doubled, reaching almost 17 trillion tenge. The share of the manufacturing sector in GDP structure was 12.4%. Last year alone, 163 new productions were commissioned, creating 12.5 thousand permanent jobs.
For example, large machine-building and metallurgical enterprises were launched in Almaty, Kostanay, Karaganda, and Atyrau regions. And this year, the largest multi-brand car plant in Kazakhstan opened in Almaty.
But this is not enough. We need to increase the pace of economic diversification. Priority is the production of deep processing products competitive in domestic and international markets. Currently, work in this direction is unsystematic. As a rule, support measures are implemented through various institutions with fragmented approaches and conditions, creating confusion for entrepreneurs. Approaches need to be streamlined and coordinated work ensured.
The mining and metallurgical complex has traditionally served as a reliable support for Kazakhstan's industrial framework, accounting for 8 percent of the country's economy. But the industry has significant growth reserves, especially in high-value added products. Given global trends, rare earth metals and other critical materials are gaining particular importance. In this area, Kazakhstan has all the opportunities to firmly integrate into global production and trade chains.
In the next three years, we must launch at least three enterprises producing high-tech products of this profile. The Government will also implement a number of flagship projects for deep processing of hydrocarbon raw materials.
Timely launch of a large gas chemical complex in Atyrau and an enterprise for deep processing of liquefied gas in Pavlodar must be ensured. The approach to using associated and liquefied petroleum gas must be fundamentally changed; it should become a full-fledged economic resource.
In implementing projects, investors face gas shortages. To solve this problem, a mechanism for ensuring guaranteed and long-term gas supplies needs to be developed. Sufficient volumes of electricity are necessary for timely launch of all planned projects and digital transformation of the economy.
Large-scale modernization of energy sources has begun in the country, with major projects involving foreign investors being implemented. For example, the introduction of 6.3 GW of "green" energy is planned in the next five years, significantly increasing its share in the energy balance.
For Kazakhstan, the energy transition is not an end in itself but a tool for sustainable development based on the real capabilities of the energy system and the long-term interests of the state. In this regard, the course toward developing nuclear energy is fundamental. A month ago, the project of Kazakhstan's first nuclear power plant in cooperation with Rosatom corporation began in Almaty region. For stable economic growth, this may not be enough. We should start planning the construction of a second and even third NPP now.
At a recent meeting with PRC Chairman Xi Jinping, an agreement was reached on strategic partnership between our countries in the nuclear industry. Kazakhstan is ready for cooperation with all global companies on mutually beneficial terms, which corresponds to the goal of ensuring our energy sovereignty.
Given Kazakhstan's huge reserves of high-quality coal, special attention should be paid to developing coal energy using advanced technology that guarantees its cleanliness. Our natural advantages must be skillfully used for the country's development.
The task of developing geological exploration remains key. Comprehensive aerogeophysical studies conducted in the country are completely outdated.
Modern maps of our subsoil using digital tools need to be compiled. This will allow assessing the potential of our deposits at a qualitatively new level. International expertise can be involved in this work. Successful geological exploration is impossible without a solid scientific foundation.
By mid-next year, a certified laboratory meeting advanced international standards should be opened on the basis of the National Geological Service. The process of digitalization and systematization of all geological information must be accelerated, primarily through the implementation of artificial intelligence. Legislative and practical reforms in geological exploration and subsoil development must be completed by the end of the year.
THIRD. The agricultural sector needs to be elevated to a new level.
To achieve a qualitative breakthrough in the industry, the state has been conducting systematic reforms and allocating significant funds in recent years. This year, a record one trillion tenge has been directed to support agrarians. Necessary credits have been issued timely. Such an unprecedented volume of financing has never occurred in our country before.
But the measures taken are clearly insufficient for fully realizing the significant opportunities of domestic agro-industrial complex. The issue is not the amount of allocated resources but their effective use. For transitioning to a progressive agro-economy, the Government must have a specific plan.
Currently, a number of large projects for deep processing of agricultural products are being implemented with the participation of Kazakhstani and foreign investors. Total investments exceed two billion dollars. Over three thousand jobs will be created. The products are oriented toward export to various countries. Such projects need to be scaled. In each region, considering its specifics, it is important to form through chains from producer to shelf.
In many regions, there are vertically integrated agro-enterprises well-known to people. These enterprises are characterized by widespread use of digital technologies that increase production efficiency. The success of leading agricultural producers is also due to building a full production cycle from growing agricultural products to deep processing. Therefore, systemic conditions should be created for spreading the experience of such agro-holdings.
This is the task of the profile ministry and public associations. Such measures will create the basis for wider application of innovations and scientific developments in agriculture.
The key emphasis now should be on developing agro-hubs and logistics centers, as well as establishing strategic partnerships with foreign investors. However, for building productive investment interaction, domestic entrepreneurs need to know and understand modern business trends and use the latest technologies, including artificial intelligence, in their activities.
The Ministry should also develop a plan to support agribusiness in livestock farming and launch effective financing mechanisms. The goal is not only full provision of the domestic market with meat but also strengthening export potential.
The Government's strategic task is to minimize the dependence of the national food market on imports. Of course, 100% self-sufficiency is impossible and probably unnecessary, but what is happening in our market now is a shameful situation.
In addition, traditional national products should be actively promoted to foreign markets. Therefore, a specific agricultural export plan is needed, taking into account logistics, veterinary and phytosanitary standards, and a competent marketing strategy. This is not the task of the Ministry of Agriculture alone but of several state bodies, so coordination at the Government leadership level is needed.
The Government is obliged to insist on fair conditions in developing Eurasian trade with reasoned arguments, and deputies must protect the rights of domestic producers with legislative initiatives.
It turned out that our entrepreneurs do not receive state support in the required volume compared to enterprises of other EAEU countries, so they are in disadvantageous conditions and forced to yield even their market to competitors. In particular, this concerns milk producers.
Land is undoubtedly a strategic resource that should work for the country's development and the well-being of all citizens. I initiated large-scale work to withdraw unused and illegally obtained agricultural lands with their subsequent redistribution. Land should not remain ownerless; land should be given only to those who understand its value.
In total, since 2022, over 13.5 million hectares of agricultural lands have been returned. However, only 6 million hectares of the returned lands have been redistributed by akims to new land users. It is obvious that previously unused agricultural lands should become centers of production, investment, and employment.
Therefore, the task of akims is to bring all returned agricultural lands into permanent circulation by mid-2026. This measure will also solve the problem of pasture shortage.
To eradicate abuses and bureaucracy in land relations, the mechanism for providing agricultural lands must be fundamentally changed. Decisions on land allocation should be made in digital format based on electronic tenders. The Government needs to propose corresponding changes to legislation by the end of the year.
In this area, it is especially important to wider use digital technologies. Already now, space monitoring and geoanalytics help identify unused lands and return them to circulation. We need to move further.
The efficiency of satellite monitoring of agricultural lands using artificial intelligence needs to be increased, on the basis of which in-depth analytics of land quality, yield, condition, and distribution of agricultural crops should be conducted. By the way, this also applies to forestry. Recently in North Kazakhstan region, 9 thousand hectares of ownerless forest were discovered.
In addition, a unified digital map of land resources should be created with integration of cadastral data, subsoil use information, and infrastructure.
Long-term dynamic growth of the agro-industrial complex is already impossible without accelerated development of applied agricultural science. However, with quite significant budget investments, the return from agro-science remains low. The level of commercialization of developments does not exceed 17%, and only 40% of profile graduates go to work in this area. The gap between agro-science and "life on the ground" persists.
Previously, I instructed to transform the National Agrarian Scientific-Educational Center into an agro-technological hub. A clear plan for developing agro-science is needed, aimed at applying digital technologies and significantly increasing industry productivity. Special attention should be paid to veterinary medicine and phytopathology, the weak development of which seriously limits the competitiveness of our agro-industrial complex.
FOURTH. The transport and logistics sector needs further development.
As known, our country is an important link between Europe and Asia. Last year, the volume of cargo transportation through our territory exceeded 1 billion tons.
At the same time, there are significant reserves for expanding the country's transit potential. The "North – South" corridor opens direct access to the markets of the Persian Gulf and South Asia countries. The "East – West" corridor and China's global "One Belt, One Road" initiative strengthen Kazakhstan's role as Eurasia's main land bridge.
The development of the Trans-Caspian transport route also has key importance for Kazakhstan. All these routes should work as a single system, bringing our country tangible income and new investments in infrastructure, as well as creating quality jobs. Digital solutions should be widely implemented, without which no efficiency can be achieved.
Issues of regional transport connectivity need to be addressed concretely. This is much discussed now, including at international forums. For Kazakhstan as a large transit territory, this direction has special significance.
Recently, the first batch of grain was sent to Vietnam through China's Lianyungang port; construction of a railway along the "Turgundi – Herat" route in Afghanistan is planned with prospects for accessing the Pakistani market. But the possibilities for opening new transport routes and new markets are not limited to this; much work lies ahead.
At the same time, global competition for transit is intensifying, with cheaper alternative directions and solutions offered. To increase transit volumes, we need to act proactively.
I would like to remind once again that to modernize infrastructure and ensure competitiveness in the transport-transit sector, the possibilities of digital technologies and artificial intelligence must be fully utilized.
This year, the construction of the second railway branch "Dostyk – Moyinty" with a length of 836 kilometers will be completed. This project, implemented by our own forces in a short time, has special significance. It will significantly increase the capacity of the "East – West" route.
We cannot stop at what has been achieved. The Government should ensure timely implementation of projects such as "Bakhty – Ayagoz", "Kyzylzhar – Moyinty". Their launch will complete the formation of the railway infrastructure framework.
It is also necessary to develop highways within key corridors. Today, 13 thousand kilometers of roads are being built and repaired throughout the country. Priority attention should be paid to transit corridors. Construction of the "Saksaul – Beineu" road should be accelerated, which will reduce transit time from China to Europe through Kazakhstan by almost a third.
Along with this, a new model of transport system management should be built, in which it will pay off state investments. A powerful impetus needs to be given to container transportation, the share of which in the country remains extremely low – only about 7%. For comparison, in the world, container transportation accounts for more than 16% of dry cargo.
The Government needs to adopt a special Program aimed at stimulating container transportation. It should also provide effective measures for developing multimodal routes.
Rational, understandable tariff policy plays a key role in increasing competitiveness and growing domestic transportation. The existing tariff formation system is fragmented and insufficiently flexible. The Government should develop a competitive tariff policy by the end of the current year, taking into account all types of transport.
Numerous complaints come from cargo carriers about the protracted nature of all processes. In fact, each service has to be processed through different digital systems, and somewhere even running with papers in the old way. Even greater indignation is caused by the lack of quality internet access at some border and customs posts. The situation needs to be urgently corrected.
I also instruct to accelerate the implementation of a multifunctional digital platform for transportation management using artificial intelligence. By the end of October, a unified digital system for customs and logistics services Smart Cargo must be launched. This system will provide private companies with equal automated access to infrastructure.
Work is underway to modernize border crossing points. This year, 8 crossing points will be fully commissioned. In the next three years, another 34 points will be reconstructed. This is very large-scale and significant work, as many border crossing points do not stand up to criticism, do not meet modern standards, and negatively affect our country's image.
I instruct the Government and akimats to improve the quality of services for auto carriers at the border. Ensuring unimpeded transportation throughout the country is of great importance. All conditions must be created for cargo transit according to the "green corridor" principle.
Many citizens express dissatisfaction with the condition of carriages. An important step in solving this longstanding problem was the launch of a carriage-building enterprise in Astana. With the participation of a foreign investor, production of modern passenger carriages equipped to advanced international standards will be established.
In recent years, large-scale work has been carried out to update aviation infrastructure. Last year, new terminals were opened in Almaty, Shymkent, and Kyzylorda. Soon, construction of new airports in Zaisan, Katon-Karagai, and Kenderli will be completed. Restoration of the airport in Arkalyk has begun.
The launch of these projects will increase economic activity in regions, create new jobs, and give impetus to the development of a number of related industries. This work will continue. The socio-economic development of the Torgai region should be in the Government's special focus.
Another important issue is the development of air cargo transportation. Despite positive dynamics in air cargo transportation, there is significant potential for further growth. Previously, I instructed to double the volume of processed air cargo.
This can be achieved primarily by creating a National cargo carrier with the involvement of major foreign partners. In conditions of growing e-commerce and supplies of high-tech products, "air cargo" is a highly profitable and extremely in-demand segment. Therefore, we must more actively develop air hubs, ensuring their integration into global logistics chains. At the same time, order needs to be established in regulating the express cargo transportation segment. This is necessary to protect consumer interests.
Unmanned types of transport, such as special vehicles and drones for cargo and parcel delivery, are developing worldwide. The Government should create all conditions for accelerated implementation of such technologies, including adopting appropriate regulatory acts.
As I have said more than once, our strategic task is to become the leading aviation hub in the Eurasian space. This work needs to be carried out with the participation of the best specialists and entrepreneurs in the industry. But the main responsibility lies with the Government. The progress of instructions will be reviewed early next year after the Government's annual report at a special meeting.
The next important sector with many accumulated problems is tourism. In particular, the shortage of professional personnel must be acknowledged. The competitiveness of this sector remains low.
In July, I instructed to bring all tourist facilities into proper condition in the shortest possible time. I keep this work under constant control. Alongside popular recreation places, it is important to strengthen the potential of other promising directions.
Tasks need to be clearly delineated. Now, comprehensive development of tourism infrastructure will be a permanent priority and responsibility of local executive bodies. At the central level, it is necessary to focus on attracting international tourists and legislative support for tourism policy.
In this regard, I separately note mountain and ski tourism in Almaty and Almaty region. The most urgent task in this direction now is creating modern infrastructure. If we fully solve it, our resorts will become known worldwide and turn into Kazakhstan's national brand.
FIFTH. A key factor in sustainable development is the modernization of housing-communal and water infrastructure.
Due to the inaction of the Government and local executive authorities over decades, the country's housing and communal services have gradually reached a critical state. Measures are now being taken to reverse the situation and reduce infrastructure wear, including through tariff liberalization and building a new model of energy and housing-communal infrastructure management. Such a model should increase the reliability and quality of services commensurate with tariff growth.
Here, the concept of creating "Smart Cities" will undoubtedly help; it needs to be scaled in all regions. The best international practices should be used, and competent managers, including foreign ones, invited.
In modern realities, modernization of housing and communal services is impossible without state-business partnership. This is an axiom. The expediency of keeping some housing-communal facilities on akimats' balance sheets should be reconsidered anew.
Therefore, the state should deal with control and regulation of the industry, while infrastructure modernization and technology implementation is the task of the private sector. Authorities are obliged to ensure transparency of infrastructure projects, mainly using digital tools, which will strengthen citizens' trust in the Government and akimats.
Modernization of communal services should be accompanied by increasing energy efficiency of infrastructure and housing stock. New environmental and sanitary-hygienic norms stimulating careful consumption should be established in the housing-communal sector.
Regarding the culture of conserving natural resources, especially water, we must admit there are big problems here – the work has barely begun. This is a separate direction of explanatory, even ideological work among citizens, especially the younger generation.
We are already facing a shortage of natural water, and the consumption culture leaves much to be desired. I will speak about the water problem below. Special attention will be paid to housing construction, which has shown high growth rates in recent years – 19 million square meters of housing were commissioned in 2024.
At the same time, to improve construction quality, information modeling of buildings using artificial intelligence technologies is important. The Government should launch a national digital platform that will ensure through accounting, planning, and monitoring at all construction stages.
A new Construction Code should lay a solid legislative foundation for sustainable, transparent, and safe industry development. The document must be adopted by the end of the year. I ask deputies for assistance.
One of the main factors of social stability, sustainable economic development, and national security is solving problems in the water sector.
Over the past two years, we have formed an institutional foundation for this. In particular, the Water Code was adopted, and a sector ministry was created. The department faces large-scale tasks that should be addressed systematically, building comprehensive work, not sporadically. At the same time, it is important to train qualified personnel and produce specialists in water diplomacy.
Today, profile bodies lack accurate data on the available volume of water resources. Water losses in some canals reach 50-60%. Accounting technologies are hopelessly outdated, and water intake points are not equipped with modern instruments.
Water is a strategic resource; without water, there is no life. Therefore, this sector should become one of the key directions of national digital transformation.
A unified digital platform for water resources should be created, uniting data on surface and groundwater based on artificial intelligence. Launching the platform will fully solve the task of hydrogeological monitoring. This work should be accompanied by forming a National Water Balance – the most important tool for long-term water policy planning. Without all this, normal control in the industry cannot be established, and necessary investments cannot be attracted.
The implementation of water-saving technologies is progressing at insufficient rates without tangible results. Well-known foreign companies need to be involved in this work; in particular, Chinese technologies, the most advanced in the world, can be purchased.
Despite pre-designated risks, water-intensive crops continue to be cultivated locally. Moreover, many facts of water intake for irrigation without any permits and contracts are recorded. Another problem that law enforcement agencies should address is the illegal sale and purchase of water on the "black market".
Nevertheless, there is positive experience related to the Aral Sea. Of course, Kazakhstan has learned serious lessons from the Aral Sea tragedy and has been systematically working on its restoration for over 20 years. Thanks to this, we managed to preserve the Northern Aral. The water body's area increased by 36%, water volume almost doubled, reducing mineralization by half. But work to raise the water level in the Aral must continue actively.
Citizens are concerned about the declining level of the Caspian Sea. If appropriate measures are not taken, the situation may worsen, up to a large-scale ecological catastrophe. Therefore, at the recent expanded SCO meeting in China, I specifically focused on this problem and proposed creating an SCO Center for Studying Water Problems.
The state of the Caspian concerns the fate of not one country but the entire region, so the situation can only be corrected through joint efforts. The Government should begin developing an interstate program for preserving Caspian Sea water resources, coordinating it with partners.
Overall, how reasonably we solve water sector problems today directly determines the fate of our children and grandchildren. A reverent, careful, and responsible attitude toward the environment should become an integral part of our national ideology.
As you know, since last year, the nationwide project "Taza Qazaqstan" has been implemented, uniting millions of concerned citizens across the country. Thanks to common efforts, about 860 thousand hectares of territories have been cleaned, and over four million trees planted. If such active work continues, Kazakhstan will become a truly green country, a wonderful example and heritage for future generations.
I express gratitude to all citizens who participated in this work, especially the youth. To root the culture of cleanliness in society, the Government should introduce a unified standard of environmental education covering all levels – from schools to universities.
SIXTH. Entrepreneurs should be the driving force of the country's digital development.
The share of small and medium business in GDP has approached 40%, and in employment structure – almost 50%. These are good indicators. But without further systematic development of this sector, we cannot make a breakthrough in either economic development or improving quality of life.
It is no secret that of more than two million operating small business entities, less than six percent are engaged in production. In the medium business segment, this indicator is higher but does not inspire optimism.
Last year, I signed a Decree "On Measures for Further Liberalization of the Economy", which laid the foundation for transitioning to a more open regulation model oriented toward business. But the Decree is not fully implemented.
The issue of revitalizing entrepreneurial initiative remains on the agenda, so the legal framework needs modernization. There are 21 codes and over 300 laws in the country. They are overloaded with amendments that often contradict each other and ultimately hinder business development. A deep revision of legislation is ahead. Artificial intelligence technologies allow this to be done quickly and effectively.
A Center for Regulatory Intelligence will be created on the basis of the Agency for Strategic Planning and Reforms (ASPR), whose task will be to establish order in legislation and prepare understandable and effective solutions.
We need to deal not with complicating legislation but adapting it to entrepreneurs' needs and strengthening ministers' and akims' personal responsibility for the final result. I receive signals that state bodies continue to make maximally strict administrative decisions regarding business instead of preventive measures. This is unacceptable.
The Register of Mandatory Requirements should become an important tool for protecting business from excessive inspections. Its full implementation needs to be accelerated with additional revision of norms for compliance with the Entrepreneurial Code.
We have achieved significant progress in digitalizing public services, but bureaucratic procedures still pose a serious barrier for business; digitalization does not fulfill its purpose.
The situation needs urgent change, primarily in tax administration. The State Revenue Committee must become a flagship of digitalization among state bodies, effectively using artificial intelligence potential in taxpayers' interests.
These systemic steps are aimed at creating a fundamentally new, service-oriented model of state-business relations.
The new Tax Code should not just change norms and procedures but form a new taxpayer mentality based on honesty and transparency. The state will protect the interests of bona fide payers, directing their taxes to the country's development. Every tenge paid in taxes should return to society in the form of quality public services, infrastructure, and state support measures.
Development institutions should play an important role in increasing entrepreneurial activity. But there are shortcomings in their work. The time has come to reboot the activities of development institutions. These structures should act as full-fledged development institutions with clear sectoral specialization, deep analytics, and investment mandate.
Another extremely important issue. The task of reducing the state's role in the economy has been on the agenda for many years. State organizations and companies continue to multiply unreasonably, hindering the full development of private enterprises.
There are already almost 25 thousand organizations with state participation in the country. The functions and structure of most of them do not stand up to criticism and even defy logic.
Due to the entrenched practice of excessively using commercial forms to solve non-commercial tasks, various costs are growing in the country, corporate bodies are multiplying, and focus on real results is lost.
I instruct the Agency for Strategic Planning and Reforms, together with the Government, to prepare specific proposals for reforming the state sector; if necessary, I am ready to issue a corresponding Decree.
In addition, the Government needs to update the law on state property, fixing clear boundaries of state participation in the economy and permissible legal requirements for management.
SEVENTH. Large-scale digital modernization of the economy presents new requirements for human capital development.
And here, education plays a special role. Within the National Project "Kelesehek Mekteptteri", 150 out of 217 planned schools are already functioning. Construction of the remaining schools must be completed within three months.
Digital technologies are rapidly changing the global labor market. Demand for specialists skilled in artificial intelligence is increasing worldwide. Therefore, on my instruction, the Al-Sana program has been launched to involve up to 100 thousand students in high-tech projects.
But forming competencies in artificial intelligence should start much earlier – from school. In this regard, several initiatives should be implemented. First, a program and educational materials on the basics of artificial intelligence need to be prepared for school students. Teachers' skills in artificial intelligence technology also need to be formed.
A Qazaq Digital Mektebi model of small-class schools should be developed based on distance learning and artificial intelligence. Such a platform will provide schoolchildren from villages with access to quality educational materials.
The experience of the capital in building child development centers with private capital involvement should be scaled. Many entrepreneurs express readiness to help in this matter; akims should more actively involve them in implementing these projects.
In transitioning to a knowledge economy, it is important to integrate science, education, and innovation management. The state still makes the main contribution to science, but the return from budget investments in the form of new patents, technologies, and productions remains insufficient.
Innovation policy should be transferred to the Ministry of Science and Higher Education. The department, together with the Academy of Sciences, should actively coordinate scientific institutes and universities. More opportunities should be given to universities betting on artificial intelligence.
The Government should also take additional measures to support talented researchers. Effective mechanisms for returning qualified domestic specialists to the country need to be developed and implemented. Migration policy needs to be reoriented to meet personnel needs.
It is important to attract strong specialists from abroad, regardless of nationality, who can contribute to the country's development. Conditions must be created for them to stay in Kazakhstan, as we desperately need qualified specialists, primarily true masters in technical professions.
In modern terms, "high-quality human resources" are required, because educated, responsible citizens form the basis of the national economy and Kazakhstan's future.
It is obvious that the country needs highly qualified, well-trained specialists in working professions. That is why I have declared 2025 the Year of Working Professions. Today, thousands of vacancies in various fields with sufficiently high wages are open across the country. These jobs are filled by foreign citizens.
Every year, thousands of engineers, builders, and agrarians graduate, with the state allocating significant funds for their education. However, many do not work in their profession, choosing quick earnings not requiring special knowledge. Of course, there is no bad work; every honest labor is important, but such a trend brings little benefit to either the individual or the country.
The state must create conditions for people to strive for production and work in the real economy sector. One key task is to increase the prestige of working profession specialists and ensure decent pay for their labor.
The lack of centralized accounting strongly affects the predictability and effectiveness of decisions in regulating the labor market and especially migration. The Government must implement a unified digital system for accounting migration flows both within the country and from abroad.
Uncontrolled internal and external migration creates colossal pressure on the infrastructure of our largest cities, which are points of attraction for citizens.
A vivid example is Astana city. In just the last three years, the capital's population has increased by more than 250 thousand people, including almost 100 thousand last year. This year, growth may exceed this already high mark. Daily infrastructure load is effectively formed based on serving 1.9 million residents, with an official population of 1.5 million.
In other words, more than 400 thousand people – the population of an average city – are served by the capital outside any plans. The stability of the city's heat and water supply systems is at risk.
Since 2022, almost 7,000 apartments have been provided to those in need in Astana, including 1,380 to large families, 835 to orphans, and 665 to people with special needs.
Against the backdrop of inaction by akims in several regions who spent excess funds from corporate taxes on inefficient projects like paving stones, people naturally gravitate to the capital where such social services and benefits are provided.
This situation is accompanied by serious problems. The number of socially vulnerable citizens has increased multiple times, social support expenditures are growing faster than budget revenues, and the share of social obligations is approaching a critical level.
School infrastructure in the city is already operating at the limit – up to 15 new schools need to be built annually. There remains a shortage of hospital beds and overload of clinics.
Instead of creating conditions for advanced city development, the akimat is forced to direct significant resources to social expenditures, which already account for 60% of the city budget. Radical measures are required to correct the situation.
A detailed analysis of the causes of migration outflow from regions to the capital must be urgently conducted, and decisions made to create alternative centers of social and economic attraction in the country. The principle "money follows citizens" should be introduced, redistributing funding for regional social obligations.
Sizes of social payments for vulnerable categories need to be unified across all regions. Shortsighted, conciliatory social policy has led to over a hundred various benefits, which a separate category of citizens, so-called "benefit hunters", are knocking out.
We still pay and provide medical services to participants in conflicts on the former USSR territory and beyond. The USSR ceased to exist 35 years ago, yet veterans are getting younger and multiplying.
It must be understood that the state does not renounce its basic function, but artificially inflated social benefits divert huge funds from real development – namely, building schools, hospitals, transport infrastructure, and much more.
At one time, our "social workers" invented a new category eligible for preferential payments – incomplete families. As a result, divorces sharply increased, and we even entered the group of world "anti-leaders" by this indicator. There are many such examples; we ourselves encourage laziness and dependency.
Why work when you can receive payments, including targeted social assistance, for almost every family member?
In other words, instead of rational solutions in the social sphere, the Government has essentially been encouraging social dependency and, frankly, social fraud for at least 15 years.
It is critically important to study demographic trends in detail and make decisions calculated for many years ahead. But proper accounting and data analysis are not established in this area either, complicating labor market needs forecasting, infrastructure development planning, and solving other important tasks.
A Center for Analysis and Forecasting of Demographic Processes with big data tools and artificial intelligence technology should be created on the basis of ASPR.
Trends in demography and the labor market necessitate reviewing approaches to the pension system. Low pension savings levels are observed, especially among the self-employed. The Government, together with the National Bank and ASPR, should take measures to strengthen the pension system's financial stability, ensure long-term balance, and decent pension levels.
The issue of increasing citizens' financial literacy remains relevant. The "Qaryzsyz Qogam" project initiated by the AMANAT party should continue. Last year alone, 845 thousand people received training and legal consultations under the project. The ultimate goal is not only to ease debt burden but to ensure sustainable income for people.
The state is making systematic efforts to develop healthcare. Gradual modernization of the entire spectrum of medical facilities – from rural paramedic-obstetric points to specialized hospitals – is underway.
Within the National Project "Modernization of Rural Healthcare", 540 facilities have been built, and 115 are expected to be commissioned by the end of this year. In cities, several large healthcare facilities have been introduced, for example, an oncology center in Astana and a scientific center for infectious diseases in Almaty.
At the same time, already built multidisciplinary hospitals in various regions must be launched without bureaucratic delays, and construction of new similar facilities continued, including with private investments under PPP mechanisms. Then citizens will not need to migrate to Astana.
Work in other directions needs to be activated, primarily developing the pharmaceutical industry. Increasing the quantity and range of domestic medicines is a strategically important task, especially given recent pandemic experience.
The financial stability of the healthcare system and effectiveness of medical services monitoring remain questionable. With limited financial resources, the Social Medical Insurance Fund effectively acts as a budget regulator, restraining expenditures through enhanced control over providers.
The Government must build a new system for monitoring the quality and volume of medical services using artificial intelligence technologies. Comprehensive measures are being taken to increase doctors' status and social position. This work will continue.
Another problem directly affecting citizens' lives and health is road safety. In last year's Address, I focused on it separately.
Of course, certain work is being done, but the number of car accidents is not decreasing. Over 22 thousand road traffic incidents have been recorded since the beginning of the year. It is obvious that much depends on drivers themselves, as there are many violators of traffic rules.
Every person must realize responsibility for their life and the safety of others. Society must form a driving culture.
Attention should also be paid to electric scooters; this topic is actively discussed in society. Two years ago, legislative changes were made providing restrictions on pedestrian paths. But the situation in public places has not changed significantly; citizens are still at risk.
Legislative amendments regulating this area have been prepared today; they must be adopted without delay. Every citizen's, every child's life is priceless, and there can be no trifles here. Ultimately, all this is important steps toward building a Safe Kazakhstan.
The next issue is the development of culture and art in the era of artificial intelligence. As before, we attach great importance to this sphere, building appropriate infrastructure, repairing and restoring facilities as necessary.
Artists promote our traditions and culture abroad, deserving recognition. Therefore, we will provide necessary support to cultural figures. But in their work, they must adapt to the demands of the time.
As you know, I pay great attention to developing mass sports. Various sports facilities are being built in regions, children's access to sections is expanding. Sports clubs for people with special needs and elderly citizens are opening.
For sports and physical culture to become an integral part of society's life, it is important to cultivate family sports traditions. At the same time, positive changes are occurring in professional sports.
Previously, I instructed to limit budget financing of legionnaires. Deputies supported this initiative and adopted the corresponding law. But we cannot stop there; we need to go further. Work on privatizing football clubs must be accelerated. Today, four Kazakhstani football clubs have found owners in the form of well-known entrepreneurs. I express gratitude to them for this.
But football commercialization must continue; without it, as world practice shows, football in Kazakhstan will not develop. Professional sports should be viewed as a business industry that brings solid income in the modern world.
The tasks I have announced are critically important for Kazakhstan's further dynamic development. They are closely linked to the country's digital modernization. Widespread implementation of artificial intelligence and total digitalization, which can multiply the country's potential in all spheres, should become a key component of our strategic course.
The launch of a supercomputer in our country is, of course, a success, but the Government and society should view it as only the beginning of intensive, multifaceted work to transform Kazakhstan into a truly digital state.
For effective implementation of this goal, the Government will develop a unified conceptual document on digitalization and artificial intelligence development Digital Qazaqstan, uniting all initiatives and projects into a nationwide strategy. At the same time, the country's deep digital transformation is only a path to improving our citizens' lives.
The state creates all conditions for every citizen to have a decent income, receive quality social services, and be confident in the future. All ongoing reforms are aimed at increasing citizens' well-being and comprehensive country development. Our efforts to strengthen Kazakhstan's international authority are also directed toward this.
I am confident that a balanced, constructive foreign policy corresponding to our state's strategic national interests will greatly benefit Kazakhstan's sustainable socio-economic development in the era of digitalization and artificial intelligence.
The fact that many countries want to develop friendly relations and mutually beneficial cooperation with Kazakhstan primarily speaks of our state's authority and demand on the international arena. Kazakhstan contributes to solving important international problems and values cooperation with all interested states, both neighboring and distant.
Recently, my official visit to China took place, where fruitful negotiations on the entire complex of bilateral relations developing in the spirit of eternal strategic partnership were held. My visits to Turkey and Kyrgyzstan were successful. At the end of the year, visits to Russia and Uzbekistan are planned; we are preparing to receive leaders of Azerbaijan, Armenia, Turkmenistan in Astana; meetings and negotiations with heads of several Asian, European, and African countries are scheduled. Kazakh-American dialogue is actively developing. Multifaceted contacts with the European Union are developing.
The current year has been rich in memorable dates. First, the 80th anniversary of the end of World War II. The solemn events held in Moscow and Beijing should be viewed as an expression of eternal memory for tens of millions of victims in the bloodiest war in human history, as a warning against revising its outcomes and attempts to unleash a new world conflict.
For lasting peace and universal progress, compromises must be sought; "a bad peace is better than a good quarrel." Therefore, Kazakhstan welcomed the outcomes of the Russian-American summit in Alaska and the signing of a peace declaration between Azerbaijan and Armenia in Washington with President Trump's mediation.
The second significant date is the 80th anniversary of the United Nations Organization, which became the foundational institutional embodiment of World War II outcomes. The UN still has no alternative, and in Kazakhstan's opinion, it should serve as the main negotiation platform for fair resolution of all current international problems.
At the same time, UN reform is overdue, primarily of its key body – the Security Council. In the near future, I plan to speak at the anniversary session of the General Assembly in New York, presenting Kazakhstan's vision of the international situation, including proposals for reforming the United Nations Organization.
Dear compatriots!
"Law and Order" is the unshakable foundation of our statehood. To root this principle in society, all profile bodies must develop a common vision and position.
Primary importance is compliance with the principle of zero tolerance for any offense, any lawlessness. Therefore, the work of state bodies in this direction needs comprehensive support. Only then will intolerance to offenses, cruelty, and violence form in public consciousness, and immunity to any antisocial phenomena appear.
It must be acknowledged that rudeness, swearing, fights, often observable even in public places and on roads, have become commonplace. Unfortunately, women sometimes arrange scandals, use obscene language, and violate public order. Such actions are unacceptable in a cultured, civilized society; they damage our country's authority on the international arena.
To become a progressive nation, we must decisively rid ourselves of such negative behavior models. The great Abai rightly said: "If one Kazakh is not a friend to another, life will be hateful around" ("If you, Kazakh, do not see another as friend, all deeds will be in vain"). Culture, decency, and upbringing should start with every citizen, every family.
In this unstable time, when strengthening sovereignty and territorial integrity become main tasks, we must preserve our unbreakable unity. If our people are cohesive, if the internal situation is stable, we will overcome all difficulties and cope with any trials. Therefore, I call on all compatriots to value and preserve peace in the country.
Every citizen must be a statist and patriot. Today, the essence and content of "patriotism" are changing. Previously, this concept was mainly measured by traditional values; issues of language, culture, and spirituality were considered the essence of national interests. Undoubtedly, all this are pillars of national identity. No one will take them from us; there are no reasons for concern here.
Today's educated youth perceives "patriotism" differently. The younger generation rejects religious radicalism and extreme nationalism. For them, the main manifestations of patriotism are creation and innovation.
Young people believe that love for the Motherland lies in benefiting society by making discoveries and starting new endeavors. They want to see Kazakhstan as a developed, prosperous state and master modern technologies so that our people are at the forefront of progress.
For the younger generation, patriotism lies in aspiration toward the future, clearly reflected in changes in public consciousness. I fully support this position. I believe in the strength, talents, and knowledge of the youth.
We do not forget who we were yesterday, honor our ancient history, but understand well that only in our hands is who we will be tomorrow. Therefore, we will always support youth striving for knowledge and caring for the country's prosperity.
All the large-scale work we are conducting is for the bright future of the younger generation. It is they who will tomorrow feel the fruits of the transformations being implemented and worthily continue the begun cause. Youth quickly adapts to radical changes occurring in the world, especially the onset of the artificial intelligence era.
The great Abai wrote that reason, science, worthy parents and friends, wise mentors form the best human qualities. As Head of State, I will add to these words: in a civilized and progressive country, laws must be fair, power competent, and citizens conscious and active.
The significance of every state decision, primarily taken to improve people's lives, stabilize the economy, and ensure social justice, should be measured by concrete deeds. Only then will our state acquire a new image and become strong.
Thanks to radical comprehensive reforms, Kazakhstan confidently steps onto the path of progress. Meticulous work lies ahead. We must move only forward, without deviating from the chosen course!
Dear compatriots!
Today, I would like to share thoughts on a new political reform that will have a serious positive impact on the further course of our country's socio-economic development in the artificial intelligence era.
It concerns parliamentary reform. This reform of the highest representative authority will be a logical continuation of all previous transformations, including presidential power reform.
We have taken the course of building a Just Kazakhstan, open and honest dialogue between authority and citizens in the spirit of a "listening state".
During the nationwide referendum held in June 2022, the overwhelming majority of citizens supported the strategy of large-scale state modernization based on the "Strong President – Influential Parliament – Accountable Government" concept.
Events of recent years in our country and even beyond have shown the correctness of this course. But we cannot stand still; we need to think about the country's future and subsequent generations.
Early this year, in my major interview with "Ana Tili" newspaper, I said that reforms are a continuous process developed as real public demand emerges.
In our country, the topic of parliamentary reform has been discussed openly and behind the scenes for at least two decades – there is no secret about it. The relevance of this issue has not been lost today. Therefore, considering the development of our state system and the increased level of citizens' political culture, I consider it possible to submit this extremely important issue for national discussion.
The Senate as the upper chamber of Kazakhstan's Parliament was created in 1995 under quite difficult, unstable political conditions when the country was just beginning its thorny path to building state foundations. Over the past thirty years, the Senate has dignifiedly and effectively fulfilled its important historical mission of ensuring stability in state-building. The upper chamber has been and remains a crucial mechanism and guarantor of both the legislative process and other key reforms.
I myself had the honor of heading the Senate for ten years, always perceiving this work as a great honor and responsibility. Therefore, it is not easy for me to speak about parliamentary reform from this podium. Nevertheless, today I will voice the proposal to create a unicameral Parliament in our country in the foreseeable future.
I want to warn immediately that this is a very serious issue; haste in resolving it is completely inappropriate. This reform should become the subject of thorough discussion in civil society, expert environment, and, of course, in the current Parliament.
I believe that the discussion, given the extraordinary nature of the reform, will take at least a year, after which a nationwide referendum could be held in 2027, followed by necessary constitutional changes.
I have repeatedly said that all issues of fateful significance for the state will be decided only with the people's consent. If we all reach a common decision on the need for a unicameral Parliament, then such a Parliament, in my opinion, should be elected only by party lists. This will correspond to widespread parliamentary tradition worldwide.
Thus, the current Mazhilis composition will have the opportunity to calmly engage in lawmaking almost until the end of its term. The Senate will continue to function until the nationwide referendum outcomes and new parliamentary elections.
In turn, political parties will have time to thoroughly prepare for serious competitive struggle. I hope that current deputies, as true statesmen, will approach this issue responsibly and with understanding. Ultimately, all our political reforms will become an integral part of a unified institutional system.
Of course, a natural question may arise: why does the President announce the need for parliamentary reform so early, when, according to political technologies, such measures are taken unexpectedly?
But I said before and will repeat: when it concerns the country's and people's fate, we must follow open policy; such a large-scale reform cannot be kept secret from society.
I am convinced that on such fateful issues, open dialogue with the people is needed. Only then, through common efforts, will we advance on the path of building a Just and Strong Kazakhstan.
I wish everyone well-being and success!
May our Kazakhstan be eternal!