Kazakh PM orders mineral developers to stop buying foreign goods that have domestic analogues
ASTANA. Aug 13 (Interfax) - Kazakh Prime Minister Olzhas Bektenov has ordered that large manufacturing companies stop buying foreign goods that have domestic analogues, an agency correspondent reported.
"Contractors who win tenders for work and services continue buying imported goods despite the availability of their analogues made in Kazakhstan. This practice has to stop," Bektenov said at a government meeting on Tuesday.
Bektenov tasked the Industry Ministry with developing a mechanism for monitoring the fulfillment of the obligation to use domestic raw materials and resources by large contractors. There is a number of catalogues of Kazakh goods, which make it possible to import goods by one catalogue and sell them as domestic by another, he said.
"There must be no such loopholes. The Finance Ministry has developed an electronic goods catalogue according to international standards for public procurement, and it must be the one for all," Bektenov said.
He also ordered that Finance Ministry, working together with the Trade Ministry and other interested departments, to analyze and remove excessive catalogues of goods, work and services.
Meeting participants were reminded that the head of state had ordered that a 60% share of Kazakh goods and services be provided in procurement by mineral developers and quasi-state and state sectors within three years.
Amendments have been submitted to the Kazakh parliament for further tightening procurement control, Bektenov said.
"Each mineral developer will adopt a domestic value development program aimed at prioritizing procurement of domestic goods. We are introducing [...] the Unified Register of Domestic Manufacturers," he said.
Enterprises listed in the register will be entitled to priority support from the government in exchange for modernizing production and raising labor productivity, competitiveness and salaries.
"The government is committed to economic patriotism. We will always support Kazakh producers. This is the task for every local government head and sectoral minister. Its fulfillment is not a recommendation but a must," Bektenov said.
Speaking of the oil and gas sector, the government said that key mineral developers had signed contracts with domestic goods manufacturers totaling $240 million.
"As of now, 65 memoranda have been concluded to develop new types of production for the oil and gas industry. They must be transformed into off-take contracts right now," Bektenov said.
He tasked the Energy Ministry with doing respective work before the end of September to guarantee the conclusion of long-term contracts of more than five years between big oil and gas companies and Kazakh manufacturers.