State to Scale Back Role in Competitive Sectors

Prime Minister Olzhas Bektenov has responded to a parliamentary inquiry regarding the role of quasi-state companies in competitive sectors of the economy, Orda.kz reports.

Bektenov confirmed that the government is pursuing a policy of gradually reducing state participation in business and expanding space for private enterprise.

The state should not directly develop entrepreneurship, especially in areas where private companies are already operating. We are reviewing the legislation to limit the participation of the quasi-state sector where it is no longer necessary. Such changes will increase competition and give private business more opportunities. This is a matter of economic development and national interests,
 said Bektenov.

An inventory conducted by the Agency for the Protection and Development of Competition has identified 475 companies slated for privatization. These include major state-owned enterprises such as Kazakhtelecom, Kazakhstan Temir Joly, and QazaqGaz. 

The government plans to gradually move these entities to IPO and SPO listings. In addition, assets in the renewable energy sector will be consolidated into a new public company, Qazaq Green Power, with plans to enter the market by 2030.

Proposed legislation would also limit quasi-state companies’ presence in competitive markets to a maximum of five years, after which privatization would be mandatory.

Exceptions will be allowed only for strategic sectors or during unstable market conditions.

Bektenov emphasized that these reforms aim to improve the business climate and reduce excessive government influence.

We are creating new rules of the game: the quasi-public sector will leave those markets where there are already private players. And those enterprises that remain will work under clear and transparent conditions. All this is being done for the sake of increasing competition, a fair market and more efficient use of public resources,
he said. 

Original Author: Artyom Volkov