The Council’s meeting for Samruk-Kazyna National Welfare Fund management chaired by the First President of Kazakhstan

Events

During the meeting, the course of implementing the instructions given at the Council’s meeting this May, was taken into consideration.

Samruk-Kazyna Fund plays a special role in the country's national economy. The Fund has great challenges. This year we are holding the second meeting of the Council, said the Leader of Nation.

The meeting heard the reports by Akhmetzhan Yessimov, chairman of the Fund’s Board, Sauat Mynbaev, head of KazakhstanTemirZholy JSC, Alik Aidarbayev, head of KazMunayGas JSC and Galymzhan Pirmatov, chairman of Kazatomprom JSC.

After the presentations, Nursultan Nazarbayev noted that the Fund’s leadership managed to solve systemic issues and achieve positive dynamics in production indicators and indicators.

- Last year, the Fund managed to increase net profit by 88 percent to the level of 2017. This year we are seeing an increase of another 40 percent. For 9 months, this year’s indicators are higher than last year’s annual figures. That is a good trend. There is systematic reduction of administrative costs and other inefficient costs. This is all evaluated positively, said the First President of Kazakhstan.

The Leader of Nation stressed the importance of ensuring effective management of state shares in joint ventures.

- The Fund, having received KZT268 billion of net cash income, gave 70 percent to the state, or KZT190 billion. It is 2 times more than last year. At the same time, in monetary terms, the amount of dividends rose 5 times. There is no need for limits, it is necessary to carry on working in this direction, said Nursultan Nazarbayev.

The First President of Kazakhstan also pointed to the effectiveness of introducing new mechanisms to stimulate production in unprofitable areas in the oil and gas and chemical industries.

- A complex of tasks is being solved through introducing mechanisms, from increasing production volumes and solving social problems to increasing the share of required reserves. And the Government needs to study and support these approaches, said the Leader of Nation.

During the meeting, issues of the Fund’s IPO and ensuring the effectiveness of procurement were also discussed.

- Procurement from a single source has gone down one-and-a-half times, and the volume of competitive purchases increased 4 times. And, as a result, cost-cutting is up. Today it amounts to more than KZT130 billion, Nursultan Nazarbayev said.

Noting the positive results of actualizing the Samruk-Kazyna Development Strategy for 2018-2028, the First President of Kazakhstan pointed out the importance of considering proposals aimed at improving the financial situation of the Fund's companies and further implementing the privatization plan.

Samruk-Kazyna is a national welfare fund. Therefore, we, as the Management Board, as well as the Board of Directors, need to carry out systematic work to increase the confidence of the population and business in the Fund’s activities. Citizens should understand that all this belongs to Kazakhstan and our people, the Leader of Nation concluded.