The Government of Kazakhstan has presented interim results of the implementation of instructions issued by President Kassym-Jomart Tokayev, outlining the key priorities of the country's future economic policy. The main areas of focus include reforming the budget system, accelerating digitalization, developing infrastructure, attracting investment and expanding citizens' opportunities to manage their pension savings.

 

The new measures form part of a broader strategy for Kazakhstan's economic transformation, under which the authorities aim to ensure sustainable economic growth, improve the efficiency of public spending and simultaneously increase private capital investment.

From the Budget Code to the Digital Economy

According to the government, the implementation of the president's instructions covers public finances, infrastructure, investment policy, digitalization and the social sector. The key measures are outlined in national plans developed within the framework of the president's 2024 and 2025 addresses.

One of the central elements of the new policy is the Budget Code. The authorities intend to strengthen oversight of the effectiveness of public spending and make the budget system more focused on measurable results.

At the same time, Kazakhstan is accelerating its transition toward a digital economy. The government is placing greater emphasis on developing digital infrastructure, artificial intelligence technologies and data-driven management systems. In the long term, these measures are expected not only to improve the quality of public services but also to create new growth opportunities for private businesses.

Considerable attention is also being paid to infrastructure. The development of transport corridors, energy facilities, utility networks and social infrastructure is seen as one of the key factors in improving the competitiveness of the country's regions and attracting investors.

The Economy Is Expected to Grow by More Than 5% a Year

At the same time, the government has unveiled the main parameters of Kazakhstan's draft budget and socio-economic development forecast for 2027–2029.

Under the baseline scenario, average annual real GDP growth during this period is expected to exceed 5%. The economy is projected to grow by 5.3% in 2027, 5.5% in 2028 and 5.4% in 2029. Nominal GDP could increase from 199.3 trillion tenge to 245 trillion tenge.

The authorities expect non-oil sectors to become the main drivers of economic growth. Manufacturing, in particular, is projected to grow by an average of 5.9% annually, while trade is expected to expand by 5.7%. The information and communications sector is forecast to grow by 9.2%, while transport and warehousing could expand by more than 10% annually.

To finance major infrastructure and nationwide projects, targeted transfers from the National Fund are planned at 2 trillion tenge in 2027 and 1.5 trillion tenge in both 2028 and 2029. At the same time, the government intends to reduce the budget deficit from 2.3% of GDP in 2027 to 0.4% by 2029.

A Focus on Investment

The key objective of the new budget policy is not merely to redistribute public funds but to use the state budget as a tool for accelerating economic development.

Increased infrastructure spending could have a dual effect. In the short term, it may support the construction sector, industry and employment, while in the long term it could reduce logistics costs and make the country's regions more attractive to investors.

At the same time, the authorities are attempting to strike a balance between stimulating growth and maintaining fiscal sustainability. Reducing the budget deficit while increasing development spending suggests that Kazakhstan intends to move toward a more targeted and efficient use of public resources.

The key question, however, is how quickly government investment will be able to attract additional private capital. This could become one of the main indicators of the effectiveness of Kazakhstan's new economic model.

Kazakhstanis Will Be Allowed to Transfer Up to 100% of Their Pension Savings to Private Asset Managers

Another significant change will be the expansion of citizens' opportunities to manage their pension savings.

Starting September 7, 2026, contributors to the Unified Accumulative Pension Fund will be allowed to transfer up to 100% of their pension savings to investment portfolio managers under trust management agreements. Previously, stricter limits were in place on the amount of funds that could be transferred.

Contributors will also be able to independently decide what portion of their savings to transfer to private managers and distribute their funds among different management companies.

According to the UAPF, the new rules are aimed at increasing the long-term returns on pension assets by giving contributors the opportunity to choose managers with investment strategies and performance records that best suit their preferences.

At the same time, greater freedom of choice also means greater personal responsibility for contributors. Returns may vary significantly depending on investment strategies, while higher potential returns are generally associated with higher investment risks.

A New Stage in Economic Policy

Taken together, the measures announced by the government indicate that Kazakhstan is seeking to implement several structural changes simultaneously:

1. The state is strengthening its role in financing major infrastructure and strategic projects.
2. The authorities are seeking to attract more private capital, promote competition in pension asset management and expand the digital economy.

 

If the announced plans are implemented, the 2027–2029 period could become a turning point for Kazakhstan, marking a transition from an economic model largely focused on commodity revenues and public spending toward a more diversified economy based on industry, logistics, technology and investment.

However, achieving the projected growth rates will require more than large-scale budget spending. The efficiency of public investment, the quality of project management, the ability to attract private capital and the preservation of macroeconomic stability will remain crucial factors.

 

CCBS Research Desk 

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27.08.2026 08:11