Kazakhstan - the 9th largest country in the world - continued its rapid development in the past 2025. “Kazakhstan has taken a big step forward on the path of modernization, has become a more civilized country“, said the President of Kazakhstan Kassam-Jomart Tokayev in an extensive interview with the Turkistan newspaper. “There are reasons for satisfaction, but I constantly urge all civil servants not to calm down and rest on their laurels. As Eastern wisdom says: “In the most favorable situation lies danger““.
The issue of rare earth metals remains extremely important. The demand for critical materials will increase over the next 5 years, it will double. This opens a new window of opportunity for Kazakhstan. “We will probably be among the world leaders in reserves of rare earth minerals“, the President of Kazakhstan predicts.
Mr. Tokayev, the traditional question at the beginning of each year is: what is the balance of the past year. I understand that there were many events, but what, in your opinion, is the main result of 2025?
Indeed, there were quite a few significant events, the year flew by in an instant and it is difficult to immediately give an unambiguous answer.
For example, our economy grew by over 6%, GDP crossed the $300 billion mark, and per capita it exceeded $15,000. These are record indicators not only for our country, but also for the entire region. There are reasons for satisfaction, but I constantly urge all civil servants not to calm down and rest on their laurels. As the Eastern wisdom says: “In the most favorable situation lies danger“. We must work hard and move forward, especially since there are not a few unresolved issues.
First of all, this is high inflation, which “eats up“ all efforts aimed at improving the well-being of citizens. This year, the government and akims (mayors) have something to work on in terms of strengthening the socio-economic foundation of the state.
Yet the main result of the year is the irreversibility of reforms. Kazakhstan has taken a big step forward on the path of modernization, has become a more civilized country. The understanding of the exceptional importance of large-scale transformations for the well-being of future generations has been strengthened in society.
Under the pressure of President Trump's "common sense" strategy, globalization is receding into the background. In Kazakhstan, we are also building a society of justice, law, order, and hard work - something critically important for the future of our country. In the coming year, this work will continue with redoubled efforts and with an eye on the long-term result.
Last year, a heated debate took place around the new tax code. Kazakhstanis had many questions and concerns on this issue. Is there an optimal balance that, on the one hand, will allow for the implementation of the desired economic reforms, and on the other, will not worsen the situation of citizens?
The topic of tax reform, of course, is relevant and discussions on this issue are fully justified, but not so much as to cause panic among citizens. Similar reforms are underway in many countries. For example, in Russia, VAT was recently increased to 22%.
Our reform is not a simple “fiscal campaign“, but a reboot of the tax system. Its main task is to ensure sustainable economic growth. The government was tasked with preparing a transparent, understandable tax code. We will see how the cabinet coped with this task this year.
Given the mistakes in fiscal policy, the previous government considered it necessary to increase VAT to 20%. During the discussions, the current government also proposed to increase VAT to 20 percent, but I instructed it to reduce the proposed increase by four points.
The new tax code aims to shift the focus from control to partnership, when all participants in the process - the state, business, citizens - conscientiously fulfill their obligations. In such a complementary system, taxes cease to be perceived as a burden. In fact, it is a modern social contract. You pay taxes - you receive services, infrastructure, security, opportunities. I will say more, it is a tool for fair redistribution of the burden, a way to support the weaker and strengthen those in the “center“ of the economy.
The effectiveness of fiscal policy worldwide is determined both by the quality of the administration and by the level of tax literacy and awareness of society. This is how the culture of paying taxes is formed, it turns from an obligation into a modern form of patriotism. And this, in turn, is a direct path to rejecting corruption. Conscientious taxpayers really do not like it when their money ends up in the pockets of crooks.
Economic reforms put pressure on prices and tariffs. This worries citizens. You instructed the government to present a plan of specific measures to solve this problem. Will this not affect the quality and pace of reforms, will it not reduce to zero the result that people hope for, expecting to improve their well-being?
World experience shows that reforms very often encounter misunderstanding, rejection by society. Therefore, the role of the leader who takes full responsibility is difficult to overestimate. As the head of state, I take on such responsibility and am ready to do so in the future. The people who work with me know this well. At the same time, I understand that this is a thorny path with many obstacles. History treats conquerors and populists better than reformers. But Kazakhstan has no other way, we must carry out reforms so as not to stand still, but to move forward.
Using administrative methods, in order to ease the family budgets of households, the increase in tariffs in the winter is temporarily suspended. At the same time, the government is faced with the task of rational use of budget funds. You cannot fill the economy with money, causing inflation. Strict budget discipline is needed. Financial resources should be directed only to projects necessary for the state. Last November, the government, the National Bank and the Agency for Regulation and Development of Financial Markets adopted a three-year program. The goal is to reduce inflation, which will improve the well-being of citizens.
International experts rightly believe that Kazakhstan has fallen into the “middle income trap“. I will be extremely frank, this is not an abstraction from economics textbooks, but a reality that many compatriots literally face every day. There is income, and sometimes significant, but it dissolves in inflation and obligations - mortgages, children's education, support for parents. Any challenge, be it illness or job loss, can undermine the stability of life.
At one time, I made a decision that citizens would have the opportunity to use their pension savings to buy apartments, pay for children's education and treatment. Many did so and expressed gratitude for such a decision, but as always, there were fraudsters who, under the guise of dental services, stole more than 200 billion tenge from the pension fund. Now law enforcement agencies are dealing with them. We should have banned this type of medical care from being paid for by pension funds, but other tricks were used, such as paying for plastic surgery.
Business creates jobs, honestly pays taxes, but large loans, limited working capital do not allow it to scale, enter new markets and introduce modern technologies.
The structure of our economy is changing, but from my point of view, at a slow pace. As a result, the country, according to the assessments of international financial institutions and rating agencies, is prosperous, even rich, which corresponds to reality, but imbalances remain in the economy that urgently need to be corrected. We see this situation, we will not hide it. Many countries are facing this problem. We will certainly cope with the “growth disease“. There is an action plan.
Last year, Kazakhstan launched the most large-scale reform in the energy and utilities sector during the years of independence. Will this solve the problem of critical wear and tear of the infrastructure?
Indeed, the government has begun a large-scale modernization of energy and utilities facilities. Hundreds of kilometers of engineering networks are to be built, power lines are to be renovated. The financial matrix of this huge project is now being developed.
Currently, the number of thermal power plants in the “red” zone has decreased from 19 to 10 sites. The risk of accidents at sites has been reduced, the result of the measures taken is visible.
However, restoring the outdated infrastructure is not enough, we need to change the principle of operation. Therefore, modernization is designed to solve the main issue - to improve the investment attractiveness of the industry, to create real market mechanisms.
The government's urgent measures are due to the very essence of the problem, because energy and utilities are the foundation of the life of any country. If this foundation collapses, everything else will fall like a “house of cards“.
For decades, deep economic problems were silenced, the infrastructure of cities and villages was destroyed, energy facilities and utility networks were worn out.
The accumulated issues are intertwined in the “Gordian knot“ of problems, creating the “utility dragon“, which must constantly be fed with budget infusions and appeased with emergency patching of holes. This began to be perceived as a given, citizens developed a sense of hopelessness.
Meanwhile, our governments were in no hurry to clean up the “Augean stables“, because such a complex task would not bring them the laurels of the winners. It was easier to report on the preparation of ambitious programs, for example, to rank Kazakhstan among the 30 most developed countries in the world, and on their “successful“ implementation. The pursuit of instant results to the detriment of reality is costing our country dearly.
If I were interested in a personal rating, I would leave the solution of problems to the next generations of leaders. But for me, not imaginary, but real results are much more important, even if they are associated with a deviation from the usual stereotypes.
Who benefits from cheap electricity? It was not large families with low incomes, large enterprises that became the main beneficiaries.
Who benefits from cheap gasoline? Not students or pensioners who usually use public transport, but entrepreneurs close to power, who are now usually called oligarchs.
Who benefits from low utility tariffs? Of course, not conscientious citizens who pay all bills on time, but businessmen-intermediaries who have earned capital in the “municipal swamp“.
Prices and tariffs in Kazakhstan are the lowest in the “post-Soviet“ space. Our country has unwittingly become a shady supplier of cheap fuels and lubricants to neighboring countries, fueling their economies.
Therefore, it is time to debunk the myth about the profitability of low tariffs for people with modest incomes. In fact, this is a hidden subsidy for rich people.
In order to restore social justice, the very approach to solving the problem must first change. The state is obliged to support those who really need it - precisely, purposefully, by paying direct compensation. Therefore, raising tariffs is a painful step towards a correct, honest economy, in which everyone pays according to their consumption, but assistance is received by those who really need it. Tariffs must be fair: "for more consumption - you pay more". I set myself such a task. The first positive results have been achieved. A differentiation in the payment system has been introduced, a “social consumption rate” with minimum tariffs for those who consume the basic minimum of water or electricity.
I am sure that this will allow us to develop the previous system towards a fair distribution of public goods, so that the country's resources work for all citizens, and not for the chosen ones. Only in this way will we be able to build modern infrastructure and efficient energy, and the economy will receive a powerful incentive for qualitative growth.
You often talk about the growing importance of transit and logistics for Kazakhstan. This area of work is indicated by you as a priority. What is being done to develop this area? What are the plans?
For our country, strengthening its transit and logistics potential is a task of strategic importance. Without direct access to the sea, Kazakhstan is nevertheless located in the center of the Eurasian continent, where most transit highways pass. This is a great advantage, which we must skillfully use for the benefit of the country. There is a vision and desire to turn Kazakhstan into a transport hub of Eurasia, this is the main direction of the upcoming work in this sector.
In this regard, I note the importance of the commissioning of the new railway highway "Dostuk - Moyenty", which will allow to increase the volume of cargo flow between China and Europe fivefold in this section. Our plans include commissioning new railway lines "Moyenty - Kyzylzhar", "Bakhty - Ayagoz", "Darbaza - Maktaaral". In general, by 2030 we expect to build and modernize 5,000 and repair 11,000 kilometers of operating railway lines.
Of great importance is the construction of the “Center-West“ highway, which will shorten the path from the capital to the western regions by more than 500 kilometers.
It was possible to create an extensive transport system that goes beyond national borders. Far from ocean transport, Kazakhstan nevertheless forms a network of cargo terminals from the Yellow to the Black Sea. 12 international transport corridors pass through our territory: 5 railway and 7 road, along which up to 85 percent of land freight transport between China and Europe is carried out.
Of course, all this does not mean that we can count on easy income. Competition in this area is intensifying, as transport and logistics have become an integral part of geopolitics. This topic has firmly entered the agenda of negotiations at the highest level, which predetermines its exceptional importance for Kazakhstan.
Our country is actively participating in the development of the Chinese megaproject "One Belt - One Road", the "North - South" corridor, as well as the Trans-Caspian transport route or the "Middle Corridor". We consider transportation along the "Russia - Kazakhstan - Turkmenistan - Iran" route with access to seaports to be promising. We welcome China's involvement in the work of the "Middle Corridor".
In general, the potential in this area is great. The issue here is not only in infrastructure. Almost all sectors of our economy intersect here. Therefore, the government is faced with the task of building transport and logistics hubs with modern engineering and service infrastructure, modernizing and repairing seaports, airports, railway stations, as well as creating an effective digital ecosystem.
In recent years, the state has placed great emphasis on the development of agriculture. All governments have been engaged in this, but this vital sector has never come out of the problem zone. Each minister comes with his own program, huge funds are sinking like water into sand. Will we finally be able to realize the potential that we have?
Agriculture in most countries is allocated a huge amount of public funds. Kazakhstan is no exception. In 2024, 580 billion tenge were allocated for preferential lending to agricultural producers, last year - one trillion tenge. The figures are impressive. Over the past 10 years, support for farmers has increased 10 times, but its effectiveness is still questionable. The volume of gross agricultural production from 2015 to 2024 increased 2.5 times, but this figure could be higher.
At the same time, the positive results in crop production are pleasing. The volume of grain and flour exports has increased to record levels, the geography of supplies has expanded. This is the result of measures to increase the productivity and efficiency of agriculture.
Now it is necessary to intensify work in other areas, primarily animal husbandry. By 2035, global consumption of “red meat“ will grow to 233 million tons, and its imports - up to 27 million tons. Kazakhstan can become a major supplier of meat, primarily to Asian countries. That is why the second farmers' forum, held in November last year, was dedicated to livestock breeding.
The government is doing a lot for the qualitative development of agriculture. But huge investments do not always lead to the desired result, we need to work on their efficiency. I spoke about this during my recent visit to Taraz.
Such powerful state support for agriculture is not available in any neighboring country, they are surprised there by the privileged position of Kazakh colleagues, who began to call themselves “agrarian oligarchs“. At the same time, owners of small farms cannot receive enough subsidies. The government is tasked with paying serious attention to this problem.
In general, subsidies are, of course, necessary, especially at the current stage, but they are toxic in their own way, because they generate dependence in rural areas with all the dangerous consequences for agriculture. Therefore, now the government is considering a decision to return to cooperatives, farmers' associations. Cooperatives are able to increase labor productivity and the efficiency of agricultural production, bring it closer to sales markets and build long-term relationships with consumers.
Cooperation in developed countries has shown itself from the good side, sometimes reaching the scale of large corporations. Prerequisites for creating successful cooperation exist in all Kazakh villages. Peasants can and should join forces for summer grazing, collection and processing of milk, meat, skins, wool. This is the path from survival to prosperity. Cooperation can also be considered as an ideology of unity and creation.
However, cooperation will not appear by itself, a lot of explanatory and organizational work is ahead. A campaign with elements of pressure, coercion is excluded.
Another topic that we discuss a lot is tourism. Last year, a number of world media outlets identified Kazakhstan as one of the best countries to travel. But there are doubts whether our resorts and popular tourist routes are ready for the mass influx of guests?
The doubts are justified. After my remark to the government, work on the development of tourism has intensified, but there is a long, thorny road ahead. This is a complex area that combines economics, culture, security, business. It should be staffed by professionals dedicated to the cause, and most importantly - patriots of Kazakhstan. Tourism is incompatible with laziness, indifference, greed, rudeness.
Last year, millions of foreign citizens visited Kazakhstan, and domestic tourism began to develop more actively. All this cannot but please.
The whole world in the struggle for tourist flows creates conditions for attracting private investors. There are many beautiful places in our country. Now ecotourism is in great demand. Here, it seems, Kazakhstan has no equal, but for subjective reasons - from incompetence to indifference of responsible persons - such a promising type of tourism has not yet received mass development. Things do not go further than presentations.
The harm to tourism is caused by some "eco-activists" who start protest campaigns against all projects under the pretext of protecting nature. Many of them are not very interested in nature itself, they need noise or, as it is now customary to say, "hype" to gain public recognition. Sometimes they are supported by entrepreneurs who have already entered this business and do not want competition.
The situation is similar in ski tourism. Here, few in the world can compare with Shymbulak, it is located 30 minutes by car from the center of Almaty, it has a unique natural landscape. But prolonged inaction has led to lagging behind, the resort is physically and morally outdated, a new vision is needed for the development of this most valuable gift of nature. A Kazakh development company is taking up the case. The government and the akimat are supporting it, but the project is in the preparatory, presentation phase. Meanwhile, in neighboring countries, the construction of ski infrastructure has already gained momentum.
The Almaty mountain cluster has huge potential, it should serve both wealthy clients and people with middle incomes. It is necessary to diversify the tourism infrastructure.
In this industry, the issue of the shortage of qualified personnel is acute. Therefore, the International University of Tourism and Hospitality was opened in Turkestan. In 2024, its first graduates entered the labor market. But this is not enough, additional measures will be taken that will solve the problem with the staff.
At the same time, we should not “sprinkle our heads with ashes“. As soon as the world tabloids advise to visit Kazakhstan, we must redouble our efforts. “CNN Travel“ declared Almaty the “new capital of style“ of Central Asia in 2025. I set the task for the akim to make Almaty a city that “never sleeps”, working around the clock in the interests of its guests, like New York, Moscow, Paris. There is still a lot of work to be done, including infrastructure, landscaping, lighting.
A question about the development of artificial intelligence. In your address, you set the task of Kazakhstan becoming a digital state within 3 years. And in your New Year's address, you declared 2026 the year of development of digitalization and artificial intelligence. What will be done to realize the set goals? Do you seriously believe in the success of your own undertaking?
Kazakhstan must become a digital power, this is a matter of our common survival as a civilized country in the new technological era. I am convinced that our people are mentally prepared for this kind of innovation. In addition, well-known fintech companies are successfully operating in Kazakhstan, which have significantly changed the style and lifestyle of our people.
A fierce competition is unfolding in the world between the USA and China - two obvious global technology giants. The US president announced the launch of a special program designed to strengthen US dominance, but China will not back down, believing that this is a matter of national dignity, there are already about 5,000 companies dealing with artificial intelligence issues. Other developed countries are not standing still.
Kazakhstan has also invested in the introduction of artificial intelligence into the economy and public life. We have good initial opportunities, there are successes in the digitalization of public services, fintech and a number of sectors of the economy. A full-fledged ecosystem functions effectively to support IT startups, an innovation cluster Astana Hub is operating, uniting two thousand companies. The total export of services for 2025 is about one billion dollars. A pilot zone CryptoCity for digital assets is being created. Construction of an accelerated development city Alatau city has begun. Work on the accumulation and analysis of state data is gaining momentum, as professionals believe that this is the new gold of the coming era.
In May last year, the Council for the Development of Artificial Intelligence began its work with the participation of leading international and domestic experts. In November, the Law on Artificial Intelligence was signed, which will soon come into force. A Ministry of Artificial Intelligence and Digital Development has been created. Two supercomputers have been launched in Kazakhstan - Alem.Cloud and Al-Farabium, a separate platform created by the Astana akimat in cooperation with a well-known UAE company.
To train specialized personnel, educational programs are being implemented at the school and university levels. For example, over 650 thousand students have been trained under the AI-Sana program. A specialized research AI university will soon be opened.
With the advent of artificial intelligence, a kind of watershed has been created between those countries that will enter the future and those that will remain in the past. That is why I have declared digital technologies and artificial intelligence a priority direction in the development of Kazakhstan. This year will be decisive. I believe in the success of the extremely important work that has been started.
What place does nuclear energy occupy in your strategic plans?
It should be understood that without reliable energy production, Kazakhstan will not be able to transition to a new technological model of the economy. Supercomputers, data centers, automated industrial complexes require a lot of energy. This is the reality of the new global technological order.
The construction of energy sources requires qualified personnel. The head of NVIDIA, the largest company in the world with a capitalization of about $ 4.5 trillion, predicts that "blue collar workers", i.e. representatives of technical professions, will soon be included in the register of multimillionaires.
The construction of several nuclear power plants is, on the one hand, a correction of the historical absurdity - to be a world leader in uranium production and not build a single nuclear power plant, on the other hand, this is the prestige of Kazakhstan. It should also be remembered that by building nuclear power plants we will prepare a new class of technical intelligentsia, which in turn will change the very essence of our state policy.
Another extremely important issue is rare earth metals. The demand for critical materials will increase over the next 5 years, it will double. Here a new window of opportunities opens for Kazakhstan. We will probably be among the world leaders in reserves of rare earth minerals. In order to strengthen its positions in this strategically important area, Kazakhstan has begun to develop cooperation with the USA, China, Russia, South Korea, Japan and some countries of the European Union.