Large-scale privatization of state property to be carried out in Kazakhstan

Kazakh President Nursultan Nazarbayev said Monday that his government will develop a new privatization program targeting all state-owned organizations.

The move, according to what Nazarbayev said in a speech to the nation, comes in the face of the instability of "almost all global markets," such as financial, hydrocarbon, metal, food and others.

Nazarbayev urged timely implementation of comprehensive structural reforms to maintain stability and growth of the Kazakh economy, which he said has been adversely affected by a number of external factors caused by the collapse of global markets.

To address the issue, the president envisioned a large-scale privatization and expansion of competition so as to free up internal resources.

Moreover, Nazarbayev said a large public sector -- in which 7,000 enterprises operate -- is the main reason for constrained competition in today's Kazakhstan.

Therefore, he championed a large-scale privatization program targeting all state-owned entities that involves establishing laws and eliminating those not subject to privatization.

Meanwhile, Nazarbayev said the privatization process should be carried out openly and competitively at a fair market value, which calls for the creation of mechanisms on the stock market that will allow maximum participation of local and foreign investors. Endi