COVID-19 pushing Kazakhstan to orient economy towards processing industries

Business Materials 16 July 2020 12:36 (UTC +04:00)
COVID-19 pushing Kazakhstan to orient economy towards processing industries

BAKU, Azerbaijan, July 16

By Nargiz Sadikhova - Trend:

The majority of the investment projects launched prior to COVID-19 pandemic go on maintaining their relevance amid the pandemic, Advisor to the Chairman of Kazakhstan’s KAZAKH INVEST National Company on Strategic Analysis at Zhandos Temirgali told Trend.

Temirgali noted that the ongoing COVID-related crisis has affected absolutely every economy sector, including oil and gas, which accounts for a significant part of Kazakhstan’s budget revenues.

“Most industrial projects are extremely capital intensive and have a fairly long production cycle. Work continues on previously announced investment projects that are under implementation. At the same time, the majority of projects retain their high relevance and are actively being carried out, whereas some projects are experiencing slowdowns due to difficulties encountered by investors in foreign markets in the current period,” Temirgali said.

He thus said that it is large projects, including projects related to the production of recoverable exchange commodities (hard commodities), the price of which is quite volatile in times of crisis that belong to high risk category.

“In this regard, Kazakhstan is facing a large-scale and multilateral task of further diversifying the economy towards modern processing industries. The rapid development of information technology dictates its own conditions, and not only the creation of industries with high processing limits is relevant, but also the creation of ‘smart’ industries involved in the digitalization of the entire economy,” he said.


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