Development of mechanical engineering in Kazakhstan

Astana, November 2008, (Khabar) - "Nur Otan" recommends government to adopt
programme on mechanical engineering development. Issues in such strategic
areas of the economy as mechanical engineering have been discussed in the
Mazhilis at an extended meeting of the "Nur Otan" party involving
government, deputies and heads of national companies.

Meiram Pshembayev, deputy of RK Mazhilis Parliament, "Union of Kazakhstan
mechanical engineers" chairman of board:
- Mechanical engineering covers only 3.5% of the total output and receives
only 1% from all investment into the industry. In terms of imports,
mechanical engineering production occupies 43%.

Specialists believe that the government should provide assistance to those
areas of the economy that support Kazakhstan's entry into the list of the 50
most competitive countries. Deputy minister Umirzak Shukeyev believes that
the country should develop new production which will find market outlets
both in the country and globally.

Umirzak Shukeyev, deputy prime-minister of RK:
- The oil and gas sector is the biggest consumer of mechanical engineering
production and investments into this industry consist of about 2 trillion
tenge.

According to the deputy prime-minister, Kazakhstan will establish a chain of
development laboratories including 4 in the regions and in Astana involving
154 million tenge that will be allocated from the state budget. Summarizing
the results of the meeting, the "Nur Otan" party asked the government to
develop a programme for the development of the mechanical engineering sector
to 2015, introduce a bill on mechanical engineering to parliament and
consider the possibility of introducing tax advantages for oil and gas,
mining, agricultural and transport mechanical engineering.