Kazakhstan has demonstrated remarkable resilience and economic progress over the past six years despite challenges such as COVID-19 and global geopolitical complexities. Under the visionary leadership of President Kassym-Jomart Tokayev, the country has made significant strides in economic diversification, digitalization, transportation, energy, and human capital development and continues to take bold steps to advance these initiatives and ensure sustained growth.
Economic Growth and Diversification
By the end of 2024, Kazakhstan’s GDP reached $288 billion, with GDP per capita rising by nearly 50% to over $14,000, positioning the country closer to the ranks of high-income nations. One of Tokayev’s primary objectives has been economic diversification, with a focus on reducing dependence on oil revenues and expanding the non-oil sector. Between 2019 and 2024, manufacturing output grew by 31.4%, while construction activity surged by an impressive 96.3%. The country witnessed substantial investment in industrial growth, with 180 projects worth 1.3 trillion tenge (US$2.5 billion) implemented in 2024 alone, fueling a near 6% growth rate, the highest in a decade. Mechanical engineering production tripled over six years, with an annual industrial growth rate of 20.3%. The petrochemical industry has also evolved from being primarily export-driven to deep-processing production. The KPI plant in Atyrau, a key project, produces polypropylene, making it the largest facility of its kind in Central Asia.
Foreign Investment and Trade Expansion
Kazakhstan has remained an attractive destination for foreign direct investment (FDI), securing $130 billion over six years. The processing industry has garnered increasing attention from foreign investors, receiving $72.7 billion in FDI. In 2024, the country achieved its highest-ever credit rating, Baa1, with a stable outlook from Moody’s, while S&P and Fitch maintained investment-grade ratings. Additionally, the United Nations recognized Kazakhstan as the second-largest recipient of FDI among landlocked nations.
Foreign trade turnover expanded significantly from $94.8 billion in 2018 to $141.4 billion in 2024. Exports surged from $61.1 billion to $81.6 billion, with processed goods exports nearly doubling to reach $28.8 billion. Consequently, the share of raw materials in total exports decreased from 74.5% in 2018 to 63.5% in 2024, marking a shift toward a more value-added economy.
Advancements in Digitalization and Artificial Intelligence
Kazakhstan has positioned itself as a leader in Central Asia’s digital economy, with IT service exports doubling over five years. The country’s innovation sector expanded significantly, growing from 1.1 trillion tenge (US$2.1 billion) to 2.4 trillion tenge (US$4.7 billion). The Qazaqstan Venture Group was established with a $1 billion target fund to accelerate AI and technological development, prioritizing investments in cutting-edge projects.
Digital solutions are now deeply integrated into various sectors, enhancing efficiency and productivity. Key initiatives include the Digital Family Card, Social Wallet, and digital vouchers for kindergartens. The nation has also developed QazaqLaw, a legislative AI assistant, and a national large language model (LLM) to support legal and administrative processes. Furthermore, the Alem.ai International Centre for Artificial Intelligence is set to become a major hub for AI research and innovation.
Energy Development and Infrastructure Expansion
Kazakhstan’s electricity consumption has risen by 14% since 2019, reaching approximately 120 billion kWh. Recognizing the growing energy demand, the government has launched nuclear power development under President Tokayev’s directive. The first nuclear power plant site has been identified, with plans underway for two additional facilities. The construction sector has seen record growth, with 19 million square meters of housing commissioned in 2024 alone, a 51.4% increase compared to 2018. Between 2019 and 2024, 97.8 million square meters of housing were built, significantly improving living standards for thousands of Kazakh families.
In the transportation sector, Kazakhstan has reconstructed 4,400 kilometers of national highways over the past six years, including major corridors such as Center-East, Center-South, and Aktobe-Atyrau-Astrakhan. In 2024 alone, 12,000 kilometers of roads underwent construction and repairs. Furthermore, 250 new roadside service facilities have been added, increasing the percentage of facilities meeting national standards from 52% to 90%. Railway infrastructure also received significant upgrades, with major repairs covering 3,000 kilometers of tracks. The Dostyk-Moyinty second track construction will increase capacity from 12 to 60 train pairs per day, enhancing freight transport between Europe and China. Maritime transport has also expanded by 20%, with the Trans-Caspian International Transport Route seeing a sixfold increase in transit flows since 2019, reaching 4.5 million tons in 2024.
Social Development and Public Services
Kazakhstan has made significant strides in social welfare, healthcare, and education. Gasification efforts have expanded access to natural gas, with over 12 million people expected to benefit by early 2025. The country built 1,700 kilometers of new gas networks in 2024 and launched 45 additional gasification projects, increasing gas coverage to 62% of the population.
Water supply modernization has also improved, with access rising to 99.4% in cities and 97.8% in villages. By the end of 2024, all remaining villages will be connected to clean water, ensuring nationwide coverage. Public safety measures have been strengthened, with crime rates dropping by 52% since 2019. Emergency services have been modernized, with new equipment increasing operational efficiency.
Healthcare and Education Reforms
Kazakhstan has made considerable progress in strengthening healthcare services. Life expectancy has increased from 73 to 75 years, and mortality rates have significantly declined. Since 2019, 955 healthcare facilities have been constructed, including major institutions such as the National Scientific Oncology Center and the National Emergency Medicine Coordination Center.
Education reforms have focused on expanding opportunities for students and professionals. Salaries for teachers have doubled, and efforts to attract skilled professionals to rural areas have been successful, with significant incentives provided for medical staff working in underserved regions. Initiatives like the “Children of Kazakhstan” program have also been launched to support youth development.
Kazakhstan’s resilience and strategic policies have fueled economic growth and social progress over the past six years. Through diversification, infrastructure development, digital innovation, and improved public services, the nation has solidified its position as a rising economic power in Central Asia. With continued investment in technology, sustainability, and human capital, Kazakhstan is well on its way to achieving long-term prosperity and stability under President Tokayev’s leadership.
Mr. Khalid Taimur Akram is the Executive Director, Pakistan Research Center for a Community with Shared Future (PRCCSF).
