Kazakhstan’s President Says to “Build, Build, Build”

Kazakhstan's President Kassym-Jomart Tokayev delivered his annual Address to the Nation on October 28, repeating his call for the country to become a “large-scale construction site,” while announcing broader plans to boost economic growth in a 95-minute speech before Parliament.In his address — traditionally delivered in September — Tokayev outlined the government’s priorities for the current parliamentary session, including expanding transport links, increasing power generation capacity, and drawing on the National Fund to finance infrastructure and social projects under a new initiative dubbed “Halyqtyq Qurylys” (“People’s Construction”). “The government needs to develop an unprecedented infrastructure modernization plan.By the end of 2029, the National Fund will allocate approximately 6.5 trillion tenge ($14.3 billion) for this large-scale project.Over the remainder of this year and in the first two months of 2027, 1.5 trillion tenge ($3.3 billion) will be allocated to launch social investment projects,” Tokayev said.Declaring 2027 the “Year of Nationwide Large-Scale Construction,” Tokayev noted that the “country’s national response” to the “coming era of artificial intelligence” would be to “build, build, build,” particularly through the development of new transport infrastructure, housing, research centers, and healthcare facilities.Tokayev suggested that these ambitions would also require addressing the country’s persistent electricity shortages, reiterating the government's goal of achieving a sustained electricity surplus by 2029.Denouncing a “botched” thermal power plant in Balkhash and delays to other projects, Tokaeyev said that reaching energy self-sufficiency would require modernizing existing facilities and transmission lines, expanding what he described as “clean” coal-fired generation, and building new power plants.To this end, Tokayev restated his intentions to create a state strategic uranium reserve to support the country’s two proposed nuclear power plants near Lake Balkash, whose construction he suggested should be expedited over the coming years. “I believe it is possible — and perhaps even necessary — to begin construction of the Balkhash NPP as early as next year and to sign a comprehensive cooperation agreement to start the construction of the Moyinkum NPP as soon as possible,” Tokayev said.During his comments, Tokayev introduced several new initiatives to make conditions for doing business in Kazakhstan more favorable.He first criticized poor coordination among government bodies responsible for attracting foreign investment, calling for the state-owned Baiterek holding company to play a greater role in coordinating investment efforts.Tokayev also argued that attracting foreign investment would also require a “high-quality” justice system, proposing the establishment of specialized independent common-law courts in Alatau, a technology city under development in Almaty region.Finally, noting that the share of small and medium-sized enterprises in Kazakhstan's GDP had reached 40%, Tokayev asked the parliament and government to discuss the extension of a three-year moratorium on financial, environmental, and labor inspections of these businesses.Towards the end of his remarks, Tokayev instructed the government to increase the minimum wage from 85,000 ($185) to 110,000 tenge ($240), effective January 1, a move that he says would increase the incomes of 1.8 million people.Moments later, Tokayev called for an overhaul to the country’s social benefits system, echoing criticisms he made of welfare spending in last year’s address.