On Thursday, January 18, at 12:00, a press conference will be held in the Government press center on the topic “On the progress of privatization within the framework of the eighth direction of the Address “Effective Public Administration”.

The speakers are Deputy Minister of National Economy Serik Zhumangarin and Deputy Minister of Finance Berik Sholpankulov.

Live broadcast of the press conference will be available at PrimeMinister.kz and social networks: Facebook, VKontakte, Twitter, Periscope and Odnoklassniki, on the official YouTube channel, as well as via mobile applications for Android and iPhone.

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Today in Ukimet Uyi, Prime Minister Bakytzhan Sagintayev chaired a regular meeting of the Council on Competitiveness under the Government of the Republic of Kazakhstan.

The meeting focused on issues of improving the business climate in areas related to the development of financial institutions, healthcare, education and labor market.

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By a Government Decree, Arman Yevniyev was appointed to the post of First Deputy Minister of Agriculture of the Republic of Kazakhstan, Gulmira Issayeva was appointed to the post of Deputy Minister of Agriculture of the Republic of Kazakhstan.

Arman Yevniyev was born in 1968 in North-Kazakhstan region. He graduated from the Omsk Agricultural Institute in 1990, in 2001 – from the State Service Academy under the President of the Republic of Kazakhstan, in 2002 – from the Karaganda Institute of Actual Education “Bolashak”. He has degrees in Agricultural Science, Public Service Management, Law.

He began his career in 1985. In 1985-1999 he worked as a handyman, agronomist, chief agronomist, director of a state farm. In 1999-2008 he held various positions in state agencies, headed the “Union of Farmers of Kazakhstan” NGO. In 2008-2010 he held the post of Deputy Minister of Agriculture of the Republic of Kazakhstan. In 2010-2016, he worked in national companies, headed the “Mazhiko” Managing Holding” LLP, the association of legal entities and individual entrepreneurs “Kazakhstan Business Council of the agro-industrial complex”.

From October 2016 to the present, he held the post of state inspector of the Department of State Control and Organizational Territorial Operations of the Executive Office of the President of the Republic of Kazakhstan.

He is a recipient of the Order of Kurmet.

Gulmira Issayeva was born in 1969 in Almaty region. She graduated from the Semipalatinsk Technological Institute of the Meat and Dairy Industry in 1991, in 2010 – from the Kazakh National Agrarian University. She is a trained engineer-technologist.

She began her career in 1991. In 1991-2010 she worked as a senior teacher, candidate, chief specialist, junior, senior research fellow, chief technologist, zootechnician-selection breeder.

In the period of 2010-2012 she worked in national companies. In 2012-2017, she held the post of Deputy Minister of Agriculture of the Republic of Kazakhstan.

From October 2017 to the present she worked as Adviser to the Prime Minister of the Republic of Kazakhstan.

She is a recipient of the Order of Kurmet.

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By a Government Decree, Nurzhan Altayev was appointed to the post of Deputy Minister of Labor and Social Protection of Population of the Republic of Kazakhstan.

Nurzhan Altayev was born in 1978 in South Kazakhstan region. In 2004 he graduated from the M. Auezov South Kazakhstan State University, in 2012 – from the Academic Innovation University. He has degrees in Law and Economics.

He began his career in 2002. In 2005-2012 he held various positions in state agencies, worked in national companies. In 2012-2017, he headed the “Service Center for Entrepreneurs”, the Chamber of Entrepreneurs of South Kazakhstan region, worked as Deputy Chairman of the Board of the National Chamber of Entrepreneurs Atameken.

From November 2017 to the present, he held the post of Deputy Minister of Agriculture of the Republic of Kazakhstan.

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Prime Minister Bakytzhan Sagintayev held a meeting today in Ukimet Uyi with the President of Varian Medical Systems, Jean Luc Devleeschauwer.

The meeting focused on issues of digitalization and cooperation in attracting new technologies into Kazakhstan’s healthcare system within the framework of the oncological care development program.

For reference: Varian Medical Systems, Inc. was founded in 1948 in the USA, headquartered in California. Its main activities focus on design, manufacture, sale and maintenance of equipment and software products for the treatment of oncological diseases.

In Kazakhstan, five medical equipment items manufactured by Varian Medical Systems Inc. have been registered in the Medical Equipment State Register.

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During today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev, Minister of Labor and Social Protection of Population Tamara Duissenova reported on the measures to introduce a new format of targeted social assistance and formalization of self-employed people.

Targeted social assistance of the new format was launched on January 1, 2018. In this regard, over the past three years, significant work has been done to qualitatively provide this type of social assistance. In the fourth quarter of 2017, work began on the timely identification of people in need of targeted assistance and the conclusion of social contracts with them.

“To date, social contracts have been signed with more than 105 thousand families. Most of them will receive cash aid, as well as assistance in finding employment,” – Tamara Duissenova said.

According to the schedule of local executive bodies, in January about 49 families will receive targeted social assistance.

The Head of State, in the framework of his annual Address to the People “New Development Opportunities in the Conditions of the Fourth Industrial Revolution”, criticized the work of the Ministry of Labor and Social Protection of Population regarding the issue of self-employed people. In this regard, at the previous Government meeting Bakytzhan Sagintayev instructed the Ministry of Labor to report on the process of formalizing self-employed citizens.

Thus, in the course of the Government meeting Tamara Duissenova reported that in Kazakhstan the self-employed account for a quarter of the workforce.

“The self-employed population in our country is a product of a transition period. From 1991 to 2001, as a result of mass closure of enterprises and job cuts, the number of self-employed increased from 327 000 to 2.8 million people,” – Tamara Duissenova said.

The growth in the number of self-employed people was suspended by the implementation of a number of employment programs, as well as the improvement of the economic situation in the country.

Over the past 7 years, the number of self-employed has decreased by half a million, and their share in the economically active population was reduced from 31% to 26%. But this, according to the Minister, is still a very high figure, which directly connects to the shadow economy, informal employment, income concealment and social insecurity.

“To address these problems, on the instructions of the Head of State, in preparing for the introduction of the health insurance system, work was carried out and still continues on the formalization of the self-employed population. In 2017, a status check of citizens was carried out, home visits were made and formalization of labor relations of the self-employed was launched with the participation of central state bodies,” – Minister T. Duissenova said.

Thus, in less than a year, the status of about 3 million people out of 5.7 million previously unidentified was defined and formalized. Of the remaining 2.7 million people:

- 1.2 million are informally employed (workers who don’t make mandatory pension contributions, unregistered private enterprises), for the formalization of which it is necessary to amend the legislation;

- 1.5 million are unproductively self-employed and unemployed, who are to be involved in productive employment.

The results show that the main task is to cover with active employment measures not 2.7 million, but only 1.5 million people.

To date, regional Akims have developed and approved regional Roadmaps for the formalization of self-employed and Comprehensive plans to promote their employment. 743 thousand jobs with employment potential were determined this year, and indicators were established of the coverage of 571 000 self-employed persons among those identified in the course of home visits.

The majority of participants are involved in the Program for Productive Employment and Territorial Development. More than half of them will be employed at permanent workplaces. Others are directed to work at subsidized workplaces and to learn in-demand professions.

Real time monitoring of employment in the context of any settlement where projects are being implemented will be carried out through the electronic Employment Roadmap.

Tamara Duissenova dwelled on the fact that employment growth can be achieved by creating new jobs in the real sector of the economy and services, as well as digitalizing employment. In this connection, the Ministry plans to simplify the procedure for registering self-employed people with incomes below 24 MW per year. It is proposed to introduce the electronic Unified Registration System with multi-channeling.

In addition, it is planned to fully use the electronic labor exchange, to which all regions have been connected since the beginning of the year, to introduce the Unified Electronic Labor Contract Accounting System, and expand the employment network by attracting private employment agencies.

Reports on the introduction of the new format TSA and formalization of self-employed in the regions were made by Akims of South Kazakhstan region Zh. Tuimebayev, East Kazakhstan region D. Akhmetov, Almaty region A. Batalov.

Summing up the results of the consideration of the issue, the Prime Minister noted that the criticism voiced in the Presidential Address concerning the self-employed population is the last warning for all. Bakytzhan Sagintayev ordered to comprehensively consider all the proposals on a monthly basis, as well as to complete the digitalization of the labor and employment sector in 2018.

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Today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev covered the progress of privatization in Kazakhstan. Reports were made by Minister of National Economy Timur Suleimenov and Minister of Finance Bakhyt Sultanov.

The Head of State, in the framework of his annual Address to the People of Kazakhstan “New Development Opportunities in the Conditions of the Fourth Industrial Revolution”, instructed to accelerate the implementation of the privatization plan, expanding it by reducing the number of subordinate organizations of state agencies, and, if possible, to consolidate subordinate organizations of state agencies to reduce administrative expenses.

“To date, the Comprehensive Privatization Plan for 2016-2020 covers 904 facilities. Full information about 876 facilities is published on the website gosreestr.kz. This list does not include 28 facilities under National ownership that are being reorganized and re-registered,” – Bakhyt Sultanov said.

In two years, 476 facilities of the Comprehensive Plan were put up for sale, of which 367 were sold for a total of 164 billion tenge. As of January 1, 2018, 255 facilities are in the process of liquidation and reorganization.

According to the Minister of Finance, the implementation of the Comprehensive Privatization Plan is 71% complete.

In 2017 it was planned to sell 463 facilities. The plan was 97% fulfilled: 289 facilities were put up, 190 of them were sold, 162 - liquidated and reorganized, 12 – carried over to 2018 due to encumbrances.

“The analysis carried out by the Ministry shows acceleration of the pace at which facilities are put up. Thus, in 2017 15% more facilities were put up compared to the previous period. The price of the sold facilities is 8% higher than their book value. As before, auction and tender remain the main methods of sale – 73%," – the Minister of Finance said.

Bakhyt Sultanov also noted that interest in the ongoing privatization has significantly increased. The number of active trading floor visitors increased 12%. Competitiveness at auctions also increased - the average number of participants in one trade is about 4-5, whereas previously there were no more than 3.

Minister of National Economy Timur Suleimenov, in turn, noted that the issues of privatization of large facilities under state ownership and assets of the Fund "Samruk-Kazyna" are regularly considered at the meetings of the State Commission for the modernization of the economy of the Republic of Kazakhstan.

Based on the recommendation of the State Commission, the list of organizations subject to privatization is updated by eliminating five state-owned organizations and one facility owned by the Baiterek Holding. At the present time, a corresponding draft resolution of the Government of the Republic of Kazakhstan has been developed, which is being approved by the state agencies.

“In order to fulfill the instructions of the Head of State, the Ministry of National Economy is establishing a working group that includes all concerned parties to carry out a full inventory of subordinate organizations of state agencies. Thus, further work on updating the List of facilities subject to privatization will be carried out within the framework of the instructions of the Head of State,” – Timur Suleimenov said.

Comments on the progress of privatization were also made by the Managing Director of NWF Samruk-Kazyna Nurlan Rakhmetov, Deputy Chairman of NMH Baiterek Galymzhan Tadzhiyakov, and Chairman of the Board of NMH KazAgro Nurlybek Malelov.

Following the discussion, Bakytzhan Sagintayev reminded the heads of state agencies and holdings about the need to adhere to the schedule of sales of facilities and instructed to ensure its timely implementation. As noted by the Prime Minister, the order of the Head of State regarding privatization should be fulfilled by the end of 2018. No arguments will be accepted. Bakytzhan Sagintayev instructed to review the progress of privatization on a quarterly basis, indicating exactly who is performing and who is lagging behind.

Responsibility for monitoring the execution of instructions was assigned to Deputy Prime Minister Erbolat Dossaev.

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The draft National Action Plan for the implementation of the Address of the Head of State of January 10, 2018, was presented today by Minister of National Economy Timur Suleimenov during the Government meeting chaired by Prime Minister Bakytzhan Sagintayev.

According to the Minister of National Economy, the draft National Plan was developed in accordance with the instructions given during the January 11 Government meeting on the execution of the Address of the Head of State “New Development Opportunities in the Conditions of the Fourth Industrial Revolution”. The project consists of 87 measures aimed at the development of the state in 10 areas.

Within the framework of the first task “Industrialization must become the flagship of introducing new technologies”, 8 measures are envisaged to manage the flow of labor, improve and develop new tools aimed at modernizing and digitizing business entities with a focus on export, as well as technology transfer.

These measures will be implemented through developing the Concept, and later a new State Program for Industrial and Innovative Development devoted to establishing the digital age industry.

Within the framework of the second task “Further development of the resource potential”, 5 measures are envisaged to develop "green" technologies, revise approaches to managing natural resources that will be implemented through updating environmental legislation, including the Environmental Code. It is also planned to develop and adopt a set of measures for the modern utilization and processing of solid waste with large-scale involvement of small and medium-sized businesses.

Within the framework of the third task “Smart technologies – an opportunity for breakthrough in the development of the agro-industrial complex”, six measures are envisaged to develop the agro-industrial complex through the introduction of new technologies and business models, the development of cooperatives, revision of inefficient subsidies, and the increase in the scientific content of the agro-industrial complex. To this end, changes will be made to the Agro-Industrial Development State Program of the Republic of Kazakhstan for 2017-2021.

Within the framework of the fourth task “Improving the efficiency of the transport and logistics infrastructure”, 3 measures are envisaged. To execute these measures, a plan will be developed for the phased implementation of the Intelligent Transport System using digital technologies. Funding will also be increased for the repair and reconstruction of local highway networks.

Within the framework of the fifth task “Introduction of modern technologies in the construction and the utilities sector”, five measures are envisaged that are aimed at improving housing legislation, as well as legislation regulating natural monopolies, improving state standards in the field of architecture and urban planning.

To implement the sixth task “Rebooting” the financial sector”, 8 measures are envisaged, which will be carried out through implementing the National Bank's program for the rehabilitation of the banking sector, as well as through measures aimed at securing long-term business lending and drafting a law on restoring the solvency of individuals and introducing changes and additions to the Mortgage Loan Refinancing Program. Within these lines, the AIFC will be prepared for IPO of shares of national companies. Starting from 2018, a phased public offering of shares of certain portfolio companies of Samruk-Kazyna will be launched.

Within the framework of the seventh task “Human capital - the basis of modernization”, 32 measures are envisaged. In order to create an advanced education system, measures are envisaged at all levels aimed at improving the educational processes, updating curricula, enhancing the prestige of teachers. In addition, changes and additions will be made to the Education and Science State Program for 2016-2019, with regards to the development of digital technologies and university science.

In the public health sector, measures will be implemented to apply new technologies to improve the prevention and treatment of diseases, improve the quality of medical care, including the development of a comprehensive plan to combat oncological diseases.

A new draft code “On people's health and the health care system" will be developed to implement measures aimed at improving the effectiveness of the health care system.

New tools of the Productive Employment and Mass Entrepreneurship Development Program for 2017-2021 will be created in order to expand the coverage of self-employed and unemployed citizens. It is also planned to improve legislation aimed at formalizing the activities of the informal working population, ensuring the transfer of work record books and labor contracts into electronic format, launching the electronic labor exchange, and improving payments from the social insurance system.

Within the framework of the eighth task “Effective Public Administration”, 10 measures are envisaged. With the aim of deregulating business, a new package of systemic measures will be developed to support business, including at the local level, as well as measures to introduce digital technologies, improve the quality of public services and state support.

Within the framework of the ninth task “Fight against corruption and the rule of law” 8 measures will be implemented aimed at the institutional transformation of the judicial and law enforcement systems.

Within the framework of the tenth task “Smart Cities for a Smart Nation”, two measures are envisaged to create a Smart City standard and use it to manage the urban environment through the dissemination of best practices and exchange of experience between Kazakhstan's cities.

“The implementation of the National Plan will give impetus to a new stage of technological and infrastructural development that will serve as the basis for the development of the country in the conditions of the fourth industrial revolution and will allow implementing measures aimed at improving the people's well-being,” – T. Suleimenov summed up.

Members of the Cabinet of Ministers unanimously approved the submitted draft.

The Ministry of National Economy and the Office of the Prime Minister were tasked to in due course submit the draft of the corresponding Decree to the Executive Office of the President of the Republic of Kazakhstan.

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During today’s press conference at the Government press center, Deputy Minister of Education and Science Bibigul Assylova commented on the issue of increasing teachers' salaries as part of the Presidential Address “New Development Opportunities in the Conditions of the Fourth Industrial Revolution”.

According to the Deputy Minister, the increase in wages will depend on the transition to the updated curriculum content.

There is an appropriate schedule, which is fixed by the education and science state program until 2019. Thus, from January 2018, wages will be increased for 1st, 2nd, 5th, and 7th grade teachers. Starting from September 2018 – for 3, 6 and 8 grade teachers. From September 2019, salaries will increase for 4th, 9th, and 10th grade teachers. In 2020 – for 11th grade teachers.

The increase, as the Head of State outlined in the Address “New Development Opportunities in the Conditions of the Fourth Industrial Revolution”, will amount to 30% of the official salary.

For example, a city teacher of the first category with 15 years of experience will have their wages increased by 24 000 tenge, the same teacher in the countryside – by 25 860 tenge. This is with full workload.

In addition, a new system of additional payments for teachers will be introduced, which will take into account the level of qualification. Categories will be assigned through the national qualification test. Depending on the confirmed qualification, additional payments will amount to 20-50%.

For example, the increase to the salary of a first category teacher with 15 years of experience, in cases where their qualification is confirmed to be of a higher level, will be 28 000 tenge in cities and 36 000 tenge in rural areas.

According to the Deputy Minister, specialists without a category and with experience of 3 years, the salary of whom is 56 000 tenge, will have a number of wage increases and additional payments (for checking notebooks, managing offices, etc.). Thus, the wage increase for updated curriculum will be 16 000 tenge in cities and 21 000 tenge in rural areas. In this scenario, the average salary of such a specialist will be about 96 000 tenge in cities and 115 000 tenge in rural areas.

“I think there is an incentive to get this wage increase. And if this specialist also passes the qualification test, their salary will grow significantly,” – Bibigul Assylova summed up.

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During today’s press conference at the Government press center, Deputy Minister of Education and Science Bibigul Assylova elaborated on the liberalization of the education sector within the framework of the seventh direction of the Address of the Head of State “Human Capital - the Basis of Modernization”.

The Head of State in his Address “New Development Opportunities in the Conditions of the Fourth Industrial Revolution” singled out the need to accelerate the establishment of our own advanced educational system, covering citizens of all ages. In particular, per capita financing in urban schools will be introduced to increase competition between educational institutions and attract private capital.

According to B. Assylova, within the seventh direction of the Address of the Head of State “Human Capital - the Basis of Modernization”, clear long-term lines of work have been defined with regards to the education system. The Ministry of Education and Science is currently developing an Action Plan for the implementation of the Address, as well as a departmental plan for meeting the tasks set before the Ministry.

According to the Deputy Minister, one of the ways to liberate the education system from an economic standpoint could be the attraction of private investment. Global experience shows that the education sector is popular, profitable and interesting for investors. One positive example of private investment attraction is the implementation of the Balapan Program.

Thus, since the launch of this program, 2336 private kindergartens and mini-centers have been opened through private investments. In the course of seven years, about 900 billion tenge was allocated for the execution of this program.

“The Ministry of Education and Science continues to work in this regard. In accordance with the instruction of the Head of State outlined in the Address, it is planned to further introduce per capita financing in urban schools,” – Bibigul Assylova said.

In 2017, amendments were made to the Law of the Republic of Kazakhstan "On Education", which allow using public procurement with regards to private schools. There are certain results already. Thus, starting from 2013, per capita funding is tested in secondary education, and in Aktobe since the beginning of this year a pilot project is being implemented in a private school.

In Shymkent city, starting from September 2018, at the expense of the local budget, it is planned to use state orders to procure 3310 seats in private schools.

In Astana city, through the National Budget and also since September of this year it is planned to use state orders for 3721 seats.

“In this regard, the Akimats will be tasked to attract private investments into education and provide appropriate budget funds for the execution of government contracts,” – Bibigul Assylova said.

The newly gained school management experience, based on the example of the cities of Astana and Shymkent, will be used for full-scale per capita financing in other regions.

Answering the question about the introduction of the per capita financing mechanism, B. Assylova noted that it is planned to reorganize schools from state institutions into state enterprises operating on the basis of the right of economic management. At the moment, changes to the legislation are in development.

“This organizational and legal form will allow our schools to become sufficiently independent in economic terms. Also, the per capita financing tool will solve a number of issues, including incentives to teachers,” – the Deputy Minister summed up.

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