Traditional Markets Elimination in Kazakhstan by 2026
In a significant move towards modernizing its economy, Kazakhstan is pushing forward with a comprehensive reform aimed at reducing the shadow economy. The reform, which includes the modernization of markets in Astana, Almaty, Zhambyl, and Jetisu regions, is expected to reach significant progress by 2028 and beyond.
However, the modernization process in these regions has faced some delays. Minister of Trade and Integration Arman Shakkaliyev, in a meeting in Astana, announced that starting January 1, 2026, markets that have not undergone modernization will be required to cease operations. The minister emphasized that inaction is a violation of the law and that the deadline will not be extended.
This announcement was reported by Liter.kz with reference to the Ministry of Trade of the Republic of Kazakhstan. The minister also urged akimats (regional administrations) to speed up the process of market modernization, stating that responsibility for each region is personal.
Despite these challenges, progress is being made in other sectors. The agricultural machinery sector is undergoing active modernization, with a target to increase the machine-tractor fleet renewal rate to 9% by 2028. This includes increased funding for concessional leasing programs to support farmers acquiring technologically modern equipment.
In the energy sector, especially oil refining, modernization efforts are centered on expanding and upgrading the Shymkent Refinery, aiming for significant capacity increases and product quality improvements by 2035. The strategy focuses on meeting growing domestic fuel demand and shifting towards higher-value light petroleum products.
Infrastructure modernization is also underway, with ambitious plans by 2029 to modernize 11,000 kilometers of railroads and build 5,000 kilometers of new lines to strengthen Kazakhstan's role as a regional logistics hub. Additionally, road construction and upgrade projects are extensive in 2025.
While the timeline for market modernization is clear, there is no evidence suggesting that specific regions or markets are at risk of ceasing operations by January 1, 2026. However, other markets in the above-mentioned regions have yet to resolve issues related to connecting to engineering networks. Businesses are encouraged not to wait until the last minute as unmodernized markets risk being left out of trade starting next year.
Entrepreneurs are increasingly complaining about bureaucracy and delays by local authorities. Some markets in the above-mentioned regions have not finalized project documentation. Minister Shakkaliyev gave a six-month deadline to address all issues related to market modernization.
As Kazakhstan moves forward with its market modernization efforts, it is crucial for businesses and local authorities to work together to ensure a smooth transition and a more efficient economy. The government's commitment to reducing the shadow economy and promoting technological advancement is a positive step towards a more prosperous future for the nation.
- The upcoming change in market operations, as announced by Minister Arman Shakkaliyev, is expected to impact the financial aspects of businesses in Kazakhstan, as markets that have not undergone modernization will be required to cease operations starting from January 1, 2026.
- In the broader context of Kazakhstan's economic reform, the modernization of markets and businesses is closely linked to political decisions and general-news discussions, as the government seeks to reduce the shadow economy and promote technological advancement for a more prosperous future.
