Senate's Refusal of Retirement Fund Withdrawal Legislation
The Senate in Kazakhstan has proposed a draft law aimed at restoring economic growth, with key provisions focusing on various sectors. The bill, which includes amendments, is currently awaiting approval from the President.
One of the significant aspects of the draft law is the provision that allows citizens to use part of their pension savings for purchasing housing and medical treatment. This measure is intended to provide greater financial flexibility and support individuals in accessing essential needs through their accumulated savings.
The draft law also emphasizes business support, with provisions to enhance support for businesses, foster growth, modernization, and digital transformation. This involves improving regulatory frameworks and providing financial incentives for enterprises, particularly small and medium-sized businesses, to boost competitiveness and innovation.
To strengthen microfinance institutions, the draft law introduces regulations designed to ensure sustainable lending practices, protect borrowers, and stimulate grassroots economic activity. However, the draft does not mention any specific amendments to the provisions regarding tightening requirements for microfinance organizations and their managers.
The draft law also proposes expanding education grant programs as a means to develop human capital, supporting reforms in education that align workforce skills with market demands and promoting investment in knowledge-intensive sectors.
In addition, the draft law plans to launch a government service for business on a one-stop-shop principle. This service is expected to provide a streamlined approach to business operations, making it easier for entrepreneurs to navigate the regulatory environment. Unfortunately, the draft law does not provide information on the launch timeline for this service.
To help entrepreneurs determine the status of the entities they are cooperating with and reduce risks, a support system for a business partners registry will be prepared. The details of this system have yet to be specified in the draft law.
Internal inconsistencies have been identified in the draft law, and the Senate has made amendments to address these issues. The amendments aim to bring the norms of the draft law into effect.
After considering the senators' amendments, the bill will be sent back to the Mazhilis (lower house of parliament) for further review. The final approval of the President is the next step in the process.
The draft law's focus on digital transformation, business support, and the use of social funds such as pension savings for social needs underscores these as the main areas of focus in Kazakhstan’s economic growth restoration strategy. Although the draft law does not contain detailed text about these specific aspects, the policy directions align with recent governmental priorities announced in 2024-2025 on social welfare enhancements, business development, and financial sector regulation.
- The draft law in Kazakhstan proposes using a portion of citizens' pension savings for purchasing housing and medical treatment, which is aimed at promoting personal-finance flexibility and enabling individuals to access essential needs through their savings.
- The proposed draft law emphasizes business support by improving regulatory frameworks and offering financial incentives for enterprises, particularly small and medium-sized businesses, to foster growth, modernization, and digital transformation, specifically with the aim of boosting competitiveness and innovation.
