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Kazakhstan’s President Nursultan Nazarbayev spoke about targets and major tasks before the national economy as he addressed the Kazakh nation on January 31.

Nazarbayev instructed the government to ensure the significant increase in transit traffic until 2020.

The volume of container freight traffic should be increased by 7 times – up to 2 million containers, passenger transportation – by 4 times to 1.6 million transit passengers.

“It is necessary to increase the income from transit transportation by 5.5 times – up to $4 billion per year,” said Nazarbayev.

He also noted that the construction and reconstruction work will cover 4,400 kilometers of roads in 2017.

It is necessary to ensure the freedom of transit of goods, the establishment and modernization of transportation corridors, added the Kazakh president.

The president further stressed that Kazakhstan needs to attract transnational companies to integrate to global chains of production and distribution of goods and services.

He particularly noted the need for effective implementation of a joint investment program with China to establish production facilities in Kazakhstan.

He recalled that realization of six projects under this program has already started, and two of these projects have been launched, including the plant for SKD (semi-knocked-down) hybrid and electric vehicles made by China’s JAC.

He instructed to study the further expansion of production of electric vehicles for exporting them and create the necessary infrastructure.

The Kazakh president also instructed the government to develop an investment strategy by September 1, 2017, and also develop a single export strategy, along with a council for the export policy, which has to include representatives of the business community.

He said the Kazakh government should double the non-oil exports by 2025.

Agriculture should become one of the new drivers of the economy, said Nazarbayev.

“Kazakhstan can become one of the world's largest producers and exporters of agricultural products,” he said. “In particular, Kazakhstan has considerable potential for production of ecologically clean foodstuff. The ‘Made in Kazakhstan’ brand should become a standard of such products.”

“I instruct to ensure the growth of food exports by 40 percent by 2021 through diversifying agricultural production,” said Nazarbayev.

To achieve these goals, he instructed the government and heads of local executive authorities to reconsider the principles of granting subsidies and to gradually start insurance of products.

He added that it is necessary to create conditions within 5 years for amalgamation of more than 500,000 households and small farms in cooperatives.

Nazarbayev also instructed to improve the processing of products, create an effective system of storage, transportation and sale of products, to improve labor productivity and reduce production costs, as well as to improve the efficiency of land use and increase investment in agricultural research.

The country will also adopt a new “Code on Subsoil” and make the necessary amendments in the country’s tax legislation.

President Nazarbayev noted that given the decrease in global demand for mining products, as well as the products of oil and gas industry, it is necessary to enter new markets and expand the scope of supplies.

He said it is also necessary to step up geological exploration, stressing that complex processing of raw materials should be intensified.

Kazakhstan will begin to introduce a compulsory social health insurance system based on solidary obligationof the state, employers and citizens from July 1, 2017, Nazarbayev further said.

"The world practice has proved the efficiency of the system," the president said.

President Nazarbayev added that the participation of the vulnerable layers of the population in that system will be supported by the state.

“A wide range of medical services is planned to be rendered to the participants of the system,” the message said.

President Nazarbayev added that private medical organizations must be provided with equal conditions in that system to develop the competition.

Moreover, the president has initiated a phased reduction of the size of the transfer from the National Fund to the budget of up to 2 trillion tenge (326 tenge = $ 1) in 2020.

"We need a more rational attitude to the use of the National Fund," he said.

In 2016, it was planned to transfer from the National Fund to the state budget the amount of 2.8 trillion tenge. However, later it was decided to reduce the size of the transfer up to 2.4 trillion tenge in this period, in order to avoid a significant reduction in reserves of the National Fund.

Recently, Nazarbayev said he will give more power to the parliament and government, as he will focus on strategic matters, foreign policy and national security while serving as "supreme arbiter" between the various branches of government.

The president clarified that about 40 functions could be transferred from president to parliament and government. The president stressed that the reforms will create stability in the country’s political system for many years to come and an efficient mechanism to respond to modern challenges.

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