Astana, October 28,2026: Kazakhstan’s President Kassym-Jomart Tokayev has announced a nationwide infrastructure modernisation programme worth approximately 6.5 trillion tenge ($14.27 billion), alongside sweeping economic reforms focused on investment, energy security, industrial development and digitalisation.
The initiatives were outlined in his State of the Nation Address, titled “Kazakhstan’s Current Priorities in a New Historical Cycle,” delivered on October 28.
At the centre of the announcement is the “People’s Construction” initiative, which Tokayev described as the largest infrastructure project in Kazakhstan’s history. Financed through the National Fund, the programme will be implemented under an Infrastructure Modernisation Plan extending through the end of 2029.
Of the total funding, 1.5 trillion tenge ($3.29 billion) will be allocated to social projects during 2026 and the first two months of 2027. The President also proposed declaring 2027 the Year of Nationwide Large-Scale Construction.
The initial phase will include around 70 healthcare facilities and 50 educational, sports and cultural facilities. Investments will also cover transport infrastructure, housing, utilities, drinking water supplies and gas access, with the potential to create hundreds of thousands of jobs.
“We must now direct this considerable potential towards modernising our infrastructure and improving the quality of life across every region of our country,” Tokayev said.
Economic growth and investment priorities
Tokayev said Kazakhstan’s gross domestic product was expected to approach $400 billion in 2026, while GDP per capita would exceed $19,000, citing projections by the International Monetary Fund.
Manufacturing accounts for more than 14 per cent of GDP, while the combined value of the country’s international reserves and National Fund assets exceeds $130 billion.
The President called for a coordinated investment-attraction strategy, stronger legal protections for businesses and greater support for domestic manufacturing. He stressed that infrastructure spending should promote industrial diversification, technological advancement and competitive local industries.
To improve the investment climate, the government plans to establish an Investment Court in Alatau City based on the English common law model to handle commercial disputes. A separate Civil Court is also planned under the city’s special legal regime. Relevant legislative amendments are expected to be submitted by the end of January 2027.
Energy security and nuclear development
Energy security was identified as another major priority, with Tokayev setting a target of achieving a sustained electricity surplus by 2029.
The strategy will involve expanding power generation, modernising electricity grids, improving coal-fired generation technologies and increasing the contribution of renewable energy.
Tokayev said construction of the Balkhash nuclear power plant could begin as early as 2027. He also called for a cooperation agreement to advance the proposed Moyynkum nuclear project and suggested considering a strategic uranium reserve to secure long-term nuclear fuel supplies.
Kazakhstan seeks to expand Eurasian transport links
Tokayev reaffirmed Kazakhstan’s ambition to become a leading logistics and transit hub in Eurasia through the expansion of railway, road, aviation and cross-border transport infrastructure.
The Bakhty–Ayagoz railway is scheduled to open in 2027, adding 20 million tonnes of annual freight capacity between Kazakhstan and China.
Meanwhile, the Aral–Caspian corridor, construction of which began in August, is expected to shorten the Trans-Caspian route by approximately 1,000 kilometres and reduce delivery times by up to three days.
The President also called for improvements in border-crossing facilities, road quality, digital freight management and aviation infrastructure, including plans for a new airport in Astana.
“Kazakhstan must seize this historic opportunity to establish itself as a leading logistics hub in Eurasia,” he said.
Critical minerals and industrial diversification
The address placed significant emphasis on developing Kazakhstan’s mineral resources and expanding domestic industrial capacity.
Tokayev called for modern geological exploration, transparent access to mineral data and a national system for managing critical mineral reserves. He stressed the importance of long-term financing, offtake agreements and partnerships with developed countries to integrate Kazakhstan into global value chains.
He said the country should use its natural resources and infrastructure investments to promote higher-value domestic production rather than relying solely on raw material exports.
Digitalisation and artificial intelligence
Digital transformation featured prominently in Tokayev’s economic agenda. Two supercomputers are already operational, while a third is expected to be commissioned before the end of 2026. The fibre-optic link across the Caspian seabed has also been completed.
Tokayev called for wider practical applications of artificial intelligence, digital employment regulations by the end of 2026 and regional pilot projects enabling rural producers to sell their products online.
He also advocated broader use of asset tokenisation to modernise financial and economic activity.
“Our goal is to build a truly people’s digital economy,” he said.
Tax reforms and support for small businesses
Tokayev identified reducing inflation, expanding long-term lending and strengthening capital markets as key economic priorities.
He called for targeted amendments to the new Tax Code, consideration of a higher tax rate for individuals with substantial wealth and the adoption of a new Civil Code by the end of 2027.
The President also proposed examining a three-year moratorium on inspections of micro and small businesses beginning in January 2027 to reduce administrative pressure and encourage entrepreneurship.
Minimum wage increase and expanded social services
The proposed reforms include raising the minimum monthly wage from 85,000 to 110,000 tenge from January 1, 2027. The increase is expected to benefit approximately 1.8 million people.
Tokayev also announced plans to raise salaries for primary healthcare specialists by up to 40 per cent and expand healthcare infrastructure through new perinatal centres and children’s hospitals.
Other priorities include improving access to inclusive education, better targeting social welfare programmes and strengthening support for vulnerable groups.
In agriculture, he called for increased investment, more efficient water consumption and completion of a national water information system to improve water-resource management.
Public administration reform and national unity
Linking his vision to Kazakhstan’s 35th anniversary of independence and its new Constitution, which entered into force in July, Tokayev called for comprehensive public administration reform.
Proposals for the next phase of administrative reform are expected by June 1, 2027. He emphasised government accountability, the rule of law, national unity and effective public institutions.
The President said these principles were essential to building a “Just, Strong, Clean, and Progressive Kazakhstan,” adding that government performance should ultimately be measured by improvements in citizens’ lives.
“The ultimate measure of a state’s progress and the principal beneficiaries of all reforms are our citizens,” Tokayev said.
The address set out a broad roadmap for Kazakhstan’s next stage of development, combining large-scale infrastructure investment with energy expansion, industrial diversification, digital transformation and social reforms aimed at improving living standards across the country.
