Ministry of Economy Found a Way to Ease Pressure on National Fund

Kazakhstan’s Ministry of National Economy has introduced a draft law to ensure stricter examination of state projects financed through the National Fund, Orda.kz reports.

The proposed legislation, published on the Open NPA portal on January 28, will be open for public discussion until February 11. It applies exclusively to projects proposed this year.

Minister Serik Zhumangarin outlined the rationale behind the bill in an explanatory note.

The primary goal is to evaluate and regulate national-scale projects funded through the National Fund, particularly those financed via bonds issued by the National Welfare Fund.

Additionally, the draft requires exploring alternative funding sources, which is expected to reduce reliance on the National Fund.

The bill establishes a 50% cap on National Fund financing for any project.

The evaluation process will assess the importance, investment potential, and financial stability of companies seeking National Fund support. Red flags, such as involvement in money laundering, financial instability, or inclusion on international sanctions lists, will come under thorough scrutiny. 

The projects will be assessed in two stages: strategically and then comprehensively.

In the first stage, the Ministry of National Expertise will conduct an initial assessment and decide whether to approve, revise (up to two times), or reject a project.

The second stage will be divided into four phases. One involves independent experts alongside specialists from the National Bank and the Ministry of Finance.

The bill also introduces new documentation requirements for National Fund financing applicants, including full disclosure of project beneficiaries.

This initiative follows a pledge made last September by former Minister Nurlan Baibazarov to tighten oversight of National Fund expenditures. He emphasized that oil revenues would be used only for critical national projects rather than unnecessary spending.

Original Author: Nikita Drobny