Kazakhstan antimonopoly agency to have powers to close state-owned enterprises

Photo: Kazakhstan antimonopoly agency to have powers to close state-owned enterprises / Kazakhstan

Baku, Azerbaijan, June 24

By Elena Kosolapova - Trend:

Kazakhstan plans to enhance the powers of the Agency for Competition Protection (antimonopoly agency) and allow it to close the state-owned enterprises competing with the private sector, Novosti-Kazakhstan reported on June 24.

Kazakhstan Government adopted a resolution on sending a bill on limiting the state involvement in business activities to the Majilis (parliament's lower chamber).

"This bill proposes the introduction in our country the principles of the so-called 'Yellow pages rule' used in Singapore, United States, Luxembourg and Norway. The principle is simple and exacting - the state-owned enterprises' operation should be limited in the spheres where the private sector can work," Minister of Regional Development Bolat Zhamishev said.

The antimonopoly agency will permit or ban the opening of state-owned enterprises following the analysis of commodity markets. The state- owned companies created earlier should be privatized or liquidated if the agency decides that the area of its activity is favorable for the private sector.

Moreover the Agency for Competition Protection will issue permits for the state companies for definite spheres of activity and the company will not be allowed to work beyond this sphere.

The bill toughens restrictions for creation of new state-owned enterprises and its subsidiaries, as well as envisages mechanisms of privatization and liquidation of the state-owned companies, which were not created in line with these principles.

All these measures will eliminate the pressure of the public sector on the private sector.

Edited by C.N.

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