The profitability of the National Fund of Kazakhstan over the past 10 years has amounted to only 1.6%, which indicates inefficient management by the authorized bodies, President Kassym-Jomart Tokayev said at an expanded meeting of the Government of Kazakhstan. He also instructed to get rid of chronic dependence on transfers from the National Fund, Vlast.kz reports.
“The government needs to achieve budget stability and get rid of chronic dependence on transfers from the National Fund. I remind you that half of the investment income of the National Fund will be credited to children after one year. This means that all citizens will closely monitor the state of affairs in the National Fund. Everyone's participation in national wealth is not empty words. This is the beginning of truly popular, social control. I want both the government and the National Bank to be fully aware of this,” Tokayev stressed.
In the next seven years, the assets of the National Fund should grow to $100 billion. Therefore, "you need to spend less from it, and earn more," Tokayev said. However, the President of Kazakhstan admitted that problems with "earning money" obviously also "have a place to be."
“The investment return of the fund is an order of magnitude lower than similar funds in other countries. The yield of the National Fund over the past 10 years has amounted to 1.6% per annum, while the yield of a similar Singaporean fund is 6.4%, Norwegian - 7.5%. This clearly demonstrates significant inefficiency on the part of the authorities authorized to manage,” Tokayev said.
In this regard, he instructed the National Bank of Kazakhstan, together with the Government of the country, to take into account all the shortcomings and make proposals for improving the management of the National Fund.
CentralasianLIGHT.org
December 12, 2022