Kazakhstan’s economy policy for the nearest 5 years to focus on large-scaled privatization

The major slogan of the Kazakhstan’s economy policy for the nearest 5 years is large-scaled privatization, Bnews.kz quoted the country’s Minister of Economic Development and Trade Kairat Kelimbetov as saying in an interview for Russian Kommersant newspaper . “(…) Privatization will be run in two stages”, according to Mr. Kelimbetov. At the first stage, that is in 2012-2015, Kazakhstan will launch the so-called People’s IPOs of national companies. Afterwards, some national holdings will be floated to attract strategic global investors. “We have estimated that at the first stage we could raise about $500 million, with $300 million coming from the country’s pension funds and the rest $200 million coming from common people”, the Minister said. “President [Nazarbayev] gave clear-cut instructions. We employed UBS, Citi, PWC, legal companies as advisors. We are unveiling the program in September or October (…) The Program will call for multiple amendments into the country’s legislation”. Speaking at the Nur Otan party congress on February 11 President Nazarbayev instructed the Government to launch Initial Public Offerings (IPO) for common people before the end of 2011. The program is known as People’s IPO. According to the President, shares of Samruk-Energo (generation and transmission of electrical energy), KEGOC (national electric power grids operator), KazPost (national postal service) were going to be floated before the end of 2011. Shares of KazMunaiGaz (national oil and gas company), Kazakhstan Temir Zholy (national railway company) and KazAtomProm (national atomic company) are to be offered for the IPO in 2012-2013. According to President Nazarbayev, the IPO for the general public will enable citizens to purchase shares of the largest Kazakh companies, giving them a new tool for investments and savings.