ASTANA, Kazakhstan, November 23. To support future economic growth, Kazakhstan needs to reduce and reconsider the role of the state in the economy, says the IMF statement following a mission to the country November 7–21, Trend reports.
According to the statement, reducing the role of the state in the economy will contribute to the development of competition and increased participation of the private sector in the economy.
In this regard, the IMF welcomed the resumption of privatization in Kazakhstan.
In IMF's view, reforms to strengthen public governance and reduce corruption-related vulnerabilities should also be prioritized.
Expanding access to financial services for small and medium-sized businesses necessitates a rethinking of the government's role in the economy, including streamlining large-scale loan subsidy programs and upgrading credit market infrastructure.
The IMF also anticipates that the adoption of the digital tenge will aid in the expansion of financial inclusion. According to the IMF, as the digital tenge is introduced, the consequences for macroeconomic and financial stability should be regularly assessed.
According to the statement, broader measures to strengthen the business environment should also stimulate economic diversification, with the private sector playing a major role.
According to the statement, modernization of transport infrastructure will also support the development of new value chains, and the mission commends recent efforts made by the government, with the support of international financial institutions, to diversify trading partners, transport routes and transit hubs.
As the IMF noted, progress has been made in implementing climate policy measures, and this work should be continued.