Kazakhstan: From Digitalization to Global Financial Leadership
By: Abdulhamid Hamid Al-Kba -Kazakhstan stands out as an exceptional model for digital transformation in the financial sector, blending strategic vision, technological innovation, and economic reforms to emerge as a distinguished regional financial hub. Through the ambitious 'Digital Kazakhstan' program, the country has achieved significant leaps in financial services and public financial management, supported by a robust digital infrastructure, flexible legislation, and global partnerships.
This article explores Kazakhstan’s journey toward leadership in financial technology, its remarkable achievements, and its future aspirations that position it to reshape the global financial landscape.Digital Transformation Driven by a National StrategyKazakhstan’s digital transformation began with the launch of the 'Digital Kazakhstan' program in 2018, aimed at digitizing key economic sectors. The banking sector led this transformation, with digitalization creating over 120,000 jobs and attracting $80 million in foreign investments within just two years. By mid-2024, digital payments accounted for 89% of transactions, placing Kazakhstan on par with digitally advanced nations like Sweden and Singapore. Applications like Kaspi.kz, serving 12 million monthly users, have redefined banking services by offering a comprehensive experience that integrates payments, e-commerce, and transportation. This super-app has become an integral part of the country’s digital infrastructure, providing diverse services such as bill payments, transportation bookings, and financial transaction management with ease and efficiency
.According to the Organization for Economic Cooperation and Development (OECD) 2025 report, the rapid integration of artificial intelligence (AI) in Kazakhstan’s financial sector has improved banking operational efficiency by 30% compared to regional benchmarks. Supportive government policies, such as the establishment of the Ministry of Artificial Intelligence and Digital Development, have enhanced the country’s ability to meet the demands of the digital era. This national strategy extended beyond banking to include the digitization of government services, enabling Kazakhstan to rank 24th globally in the United Nations E-Government Development Index (EGDI) for 2024, surpassing countries like Germany and China.Technological Innovations Enhancing Financial InclusionThe introduction of digital identity and biometric systems marked a pivotal turning point. In 2020, the National Bank launched a remote biometric identification system, facilitating access to banking services without the need for branch visits. By 2024, the national biometric authentication framework strengthened security and reduced fraud by 40%, boosting customer trust.
The launch of instant payment systems and QR codes led to 2.1 billion digital transactions in the first eight months of 2024, reflecting the efficiency of the digital infrastructure. These systems have transformed Kazakhstan into a cashless economy, with over 81 million registered payment cards and 26 million active online banking users—a figure exceeding the country’s population.Additionally, Kazakhstan launched the Digital Tenge (CBDC) project in 2020, with hybrid blockchain trials conducted by 2024-2025. This initiative aims to enhance the efficiency of cross-border payments and expand financial inclusion in rural areas. According to Binur Zhalenov, Chief Digital Advisor at the National Bank, “The Digital Tenge represents a pioneering step toward a future of finance driven by innovation and security” (Source: LinkedIn, 2025). The launch of a regulatory sandbox for digital assets in July 2025 enables the testing of Tenge-backed stablecoins, enhancing the appeal of local financial instruments.Fintech Ecosystem and InnovationKazakhstan has witnessed remarkable growth in its fintech sector, with the number of startups quadrupling since 2018 to over 200 by 2025. These companies offer innovative solutions in digital lending, AI-supported financial planning, and blockchain applications. For instance, opening an online bank account takes just three minutes, and digital loan processing is completed in under two minutes.
The introduction of Open Banking and Open APIs in 2023 has enabled customers to manage their accounts through a single platform, fostering competition and reducing costs by an average of 15%.According to the Asian Productivity Organization’s 2024 report, the growth of digital financial services in Kazakhstan has increased productivity in other sectors by 25%. Partnerships with global giants like Binance and KPMG through the Astana International Financial Centre (AIFC) have bolstered foreign investment. With Almaty hosting the World Federation of Central Depositories (WFC2025), Kazakhstan is solidifying its position as an emerging global financial hub.Legislative Reforms and CybersecurityKazakhstan is strengthening its position through comprehensive legislative reforms, including a new banking law addressing digital assets and fintech. Expected to be adopted by the end of 2025, this law aligns with global standards from the European Union and the UAE, focusing on consumer protection and innovation.
As stated by the Agency for Regulation and Development of the Financial Market to Astana Times, “The draft law resulted from a comprehensive review of existing banking standards, with the development of regulatory and supervisory methods and consumer protection” (Astana Times, 2025). Cybersecurity measures, such as the establishment of a National Anti-Fraud Center in 2024, have enhanced financial system protection by 35% compared to the previous year.With internet coverage reaching 92% of the population and the expansion of 5G networks, Kazakhstan boasts a robust digital infrastructure.
The launch of SpaceX’s Starlink service in Kazakhstan has improved connectivity in remote areas by 20%, supporting financial inclusion. Digital literacy programs targeting the training of 100,000 IT specialists by 2026 have further strengthened the workforce’s capabilities.Astana International Financial Centre and Future ProspectsThe Astana International Financial Centre (AIFC) is a cornerstone of Kazakhstan’s success, attracting over 3,000 global companies since 2018 and securing $11 billion in investments. Ranked as the top financial center in Eastern Europe and Central Asia in the Global Financial Centres Index (GFCI 38), the AIFC is a key driver of economic growth. Forecasts indicate a 5.4% GDP growth by 2026, supported by financial reforms that enhance economic diversification and investor confidence. The launch of the Solana Economic Zone in 2025, the first of its kind in Central Asia, further cements Kazakhstan’s position as a blockchain innovation hub.Building Digital SovereigntyKazakhstan is rapidly adapting to the digital era through bold initiatives, such as establishing the Ministry of Artificial Intelligence and Digital Development, accelerating the adoption of digital laws, and expanding the use of the Digital Tenge across all budget levels. The country also launched a Government Digital Assets Fund as a reserve for cryptocurrencies and established Alatau City as a fully digital urban area. According to President Kassym-Jomart Tokayev in his 2024 State of the Nation address, “The resources of the National Fund should be used prudently to finance promising small-scale projects with strong market potential” (Akorda, 2025). These initiatives aim to achieve digital sovereignty and elevate Kazakhstan’s status as a global technology hub.Digital Transformation as a Driver of Systemic DevelopmentInternational organizations view digitalization as a catalyst for structural transformation. According to the OECD’s 2025 report, AI is a versatile technology capable of boosting productivity in financial sectors by up to 20%.
Kazakhstan, ranked third in Central Asia and the Global Innovation Index for 2024, leverages these insights to expand its digital solutions. For example, the digitization of government services has saved 51.3 billion Tenge ($95.1 million) in the economy while reducing administrative barriers by 30%.International cooperation, such as Telegram’s entry into the AIFC in 2025, has enhanced Kazakhstan’s appeal to global tech firms. The launch of the Tech Orda program to train 100,000 IT specialists and the AI Qyzmet program to equip civil servants with AI skills ensures a workforce ready to tackle digital challenges.Boosting Budget Revenues with Digital ReformsAmid this digital transformation, Kazakhstan has seen a significant increase in public budget revenues, rising by 23.4% in 2025 to 21.6 trillion Tenge (approximately $40 billion), as revealed by President Kassym-Jomart Tokayev during his meeting with Finance Minister Madi Takiyev on October 8, 2025. Of these revenues, 15.2 trillion Tenge ($28.2 billion) came from taxes, reflecting stronger financial performance compared to the previous year.
The republican budget was executed at 101.6% in the first nine months of 2025, with a strong focus on social spending, which accounted for over 60% of the total, reinforcing the commitment to human development and social welfare.Special attention was given to the implementation of the new Public Procurement Law, which reduced procedural timelines by 20 times and increased transparency through automated tender processes, allocating 70% of contracts to local producers. This law boosted the participation of small and medium enterprises by 25%, contributing to the e-commerce sector’s growth to 12% of total retail in 2025, up from 1.8% in 2019.
The full automation of analysis and oversight in the treasury’s information system saved 7.5 billion Tenge in administrative costs.Within the broader digital finance agenda, the government focused on building big data capabilities and integrating AI into tax and customs operations, reducing fraud and recovering 850 billion Tenge in illicitly acquired assets. These funds were redirected to construct 10 schools, 4 sports facilities, 235 healthcare facilities, and 177 water infrastructure projects.
Government audits, including 791 inspections between January and August 2025, uncovered financial violations worth 337.5 billion Tenge (approximately $624 million), underscoring the government’s commitment to financial discipline.Challenges and Future OpportunitiesDespite its achievements, Kazakhstan faces challenges such as market concentration in the fintech sector and connectivity gaps in rural areas.
However, its ambitious digital roadmap, including the expansion of 5G and satellite internet through partnerships with SpaceX and Amazon Kuiper, ensures continued growth. The launch of Central Asia’s first supercomputer (alem.cloud) in 2025 enhances research and development capabilities in AI.ConclusionKazakhstan is not just a regional success story but a global model for harnessing technology to achieve financial inclusion and economic growth. By combining supportive government policies, advanced infrastructure, and private-sector innovation, the country has positioned itself at the forefront of digital banking transformation. As digital assets and AI continue to evolve, Kazakhstan looks toward a future that solidifies its role as a global financial hub, inspiring other nations to follow its ambitious path.
By: Abdulhamid Hamid Al-Kba -Kazakhstan stands out as an exceptional model for digital transformation in the financial sector, blending strategic vision, technological innovation, and economic reforms to emerge as a distinguished regional financial hub. Through the ambitious 'Digital Kazakhstan' program, the country has achieved significant leaps in financial services and public financial management, supported by a robust digital infrastructure, flexible legislation, and global partnerships.
This article explores Kazakhstan’s journey toward leadership in financial technology, its remarkable achievements, and its future aspirations that position it to reshape the global financial landscape.Digital Transformation Driven by a National StrategyKazakhstan’s digital transformation began with the launch of the 'Digital Kazakhstan' program in 2018, aimed at digitizing key economic sectors. The banking sector led this transformation, with digitalization creating over 120,000 jobs and attracting $80 million in foreign investments within just two years. By mid-2024, digital payments accounted for 89% of transactions, placing Kazakhstan on par with digitally advanced nations like Sweden and Singapore. Applications like Kaspi.kz, serving 12 million monthly users, have redefined banking services by offering a comprehensive experience that integrates payments, e-commerce, and transportation. This super-app has become an integral part of the country’s digital infrastructure, providing diverse services such as bill payments, transportation bookings, and financial transaction management with ease and efficiency
.According to the Organization for Economic Cooperation and Development (OECD) 2025 report, the rapid integration of artificial intelligence (AI) in Kazakhstan’s financial sector has improved banking operational efficiency by 30% compared to regional benchmarks. Supportive government policies, such as the establishment of the Ministry of Artificial Intelligence and Digital Development, have enhanced the country’s ability to meet the demands of the digital era. This national strategy extended beyond banking to include the digitization of government services, enabling Kazakhstan to rank 24th globally in the United Nations E-Government Development Index (EGDI) for 2024, surpassing countries like Germany and China.Technological Innovations Enhancing Financial InclusionThe introduction of digital identity and biometric systems marked a pivotal turning point. In 2020, the National Bank launched a remote biometric identification system, facilitating access to banking services without the need for branch visits. By 2024, the national biometric authentication framework strengthened security and reduced fraud by 40%, boosting customer trust.
The launch of instant payment systems and QR codes led to 2.1 billion digital transactions in the first eight months of 2024, reflecting the efficiency of the digital infrastructure. These systems have transformed Kazakhstan into a cashless economy, with over 81 million registered payment cards and 26 million active online banking users—a figure exceeding the country’s population.Additionally, Kazakhstan launched the Digital Tenge (CBDC) project in 2020, with hybrid blockchain trials conducted by 2024-2025. This initiative aims to enhance the efficiency of cross-border payments and expand financial inclusion in rural areas. According to Binur Zhalenov, Chief Digital Advisor at the National Bank, “The Digital Tenge represents a pioneering step toward a future of finance driven by innovation and security” (Source: LinkedIn, 2025). The launch of a regulatory sandbox for digital assets in July 2025 enables the testing of Tenge-backed stablecoins, enhancing the appeal of local financial instruments.Fintech Ecosystem and InnovationKazakhstan has witnessed remarkable growth in its fintech sector, with the number of startups quadrupling since 2018 to over 200 by 2025. These companies offer innovative solutions in digital lending, AI-supported financial planning, and blockchain applications. For instance, opening an online bank account takes just three minutes, and digital loan processing is completed in under two minutes.
The introduction of Open Banking and Open APIs in 2023 has enabled customers to manage their accounts through a single platform, fostering competition and reducing costs by an average of 15%.According to the Asian Productivity Organization’s 2024 report, the growth of digital financial services in Kazakhstan has increased productivity in other sectors by 25%. Partnerships with global giants like Binance and KPMG through the Astana International Financial Centre (AIFC) have bolstered foreign investment. With Almaty hosting the World Federation of Central Depositories (WFC2025), Kazakhstan is solidifying its position as an emerging global financial hub.Legislative Reforms and CybersecurityKazakhstan is strengthening its position through comprehensive legislative reforms, including a new banking law addressing digital assets and fintech. Expected to be adopted by the end of 2025, this law aligns with global standards from the European Union and the UAE, focusing on consumer protection and innovation.
As stated by the Agency for Regulation and Development of the Financial Market to Astana Times, “The draft law resulted from a comprehensive review of existing banking standards, with the development of regulatory and supervisory methods and consumer protection” (Astana Times, 2025). Cybersecurity measures, such as the establishment of a National Anti-Fraud Center in 2024, have enhanced financial system protection by 35% compared to the previous year.With internet coverage reaching 92% of the population and the expansion of 5G networks, Kazakhstan boasts a robust digital infrastructure.
The launch of SpaceX’s Starlink service in Kazakhstan has improved connectivity in remote areas by 20%, supporting financial inclusion. Digital literacy programs targeting the training of 100,000 IT specialists by 2026 have further strengthened the workforce’s capabilities.Astana International Financial Centre and Future ProspectsThe Astana International Financial Centre (AIFC) is a cornerstone of Kazakhstan’s success, attracting over 3,000 global companies since 2018 and securing $11 billion in investments. Ranked as the top financial center in Eastern Europe and Central Asia in the Global Financial Centres Index (GFCI 38), the AIFC is a key driver of economic growth. Forecasts indicate a 5.4% GDP growth by 2026, supported by financial reforms that enhance economic diversification and investor confidence. The launch of the Solana Economic Zone in 2025, the first of its kind in Central Asia, further cements Kazakhstan’s position as a blockchain innovation hub.Building Digital SovereigntyKazakhstan is rapidly adapting to the digital era through bold initiatives, such as establishing the Ministry of Artificial Intelligence and Digital Development, accelerating the adoption of digital laws, and expanding the use of the Digital Tenge across all budget levels. The country also launched a Government Digital Assets Fund as a reserve for cryptocurrencies and established Alatau City as a fully digital urban area. According to President Kassym-Jomart Tokayev in his 2024 State of the Nation address, “The resources of the National Fund should be used prudently to finance promising small-scale projects with strong market potential” (Akorda, 2025). These initiatives aim to achieve digital sovereignty and elevate Kazakhstan’s status as a global technology hub.Digital Transformation as a Driver of Systemic DevelopmentInternational organizations view digitalization as a catalyst for structural transformation. According to the OECD’s 2025 report, AI is a versatile technology capable of boosting productivity in financial sectors by up to 20%.
Kazakhstan, ranked third in Central Asia and the Global Innovation Index for 2024, leverages these insights to expand its digital solutions. For example, the digitization of government services has saved 51.3 billion Tenge ($95.1 million) in the economy while reducing administrative barriers by 30%.International cooperation, such as Telegram’s entry into the AIFC in 2025, has enhanced Kazakhstan’s appeal to global tech firms. The launch of the Tech Orda program to train 100,000 IT specialists and the AI Qyzmet program to equip civil servants with AI skills ensures a workforce ready to tackle digital challenges.Boosting Budget Revenues with Digital ReformsAmid this digital transformation, Kazakhstan has seen a significant increase in public budget revenues, rising by 23.4% in 2025 to 21.6 trillion Tenge (approximately $40 billion), as revealed by President Kassym-Jomart Tokayev during his meeting with Finance Minister Madi Takiyev on October 8, 2025. Of these revenues, 15.2 trillion Tenge ($28.2 billion) came from taxes, reflecting stronger financial performance compared to the previous year.
The republican budget was executed at 101.6% in the first nine months of 2025, with a strong focus on social spending, which accounted for over 60% of the total, reinforcing the commitment to human development and social welfare.Special attention was given to the implementation of the new Public Procurement Law, which reduced procedural timelines by 20 times and increased transparency through automated tender processes, allocating 70% of contracts to local producers. This law boosted the participation of small and medium enterprises by 25%, contributing to the e-commerce sector’s growth to 12% of total retail in 2025, up from 1.8% in 2019.
The full automation of analysis and oversight in the treasury’s information system saved 7.5 billion Tenge in administrative costs.Within the broader digital finance agenda, the government focused on building big data capabilities and integrating AI into tax and customs operations, reducing fraud and recovering 850 billion Tenge in illicitly acquired assets. These funds were redirected to construct 10 schools, 4 sports facilities, 235 healthcare facilities, and 177 water infrastructure projects.
Government audits, including 791 inspections between January and August 2025, uncovered financial violations worth 337.5 billion Tenge (approximately $624 million), underscoring the government’s commitment to financial discipline.Challenges and Future OpportunitiesDespite its achievements, Kazakhstan faces challenges such as market concentration in the fintech sector and connectivity gaps in rural areas.
However, its ambitious digital roadmap, including the expansion of 5G and satellite internet through partnerships with SpaceX and Amazon Kuiper, ensures continued growth. The launch of Central Asia’s first supercomputer (alem.cloud) in 2025 enhances research and development capabilities in AI.ConclusionKazakhstan is not just a regional success story but a global model for harnessing technology to achieve financial inclusion and economic growth. By combining supportive government policies, advanced infrastructure, and private-sector innovation, the country has positioned itself at the forefront of digital banking transformation. As digital assets and AI continue to evolve, Kazakhstan looks toward a future that solidifies its role as a global financial hub, inspiring other nations to follow its ambitious path.
By: Abdulhamid Hamid Al-Kba -Kazakhstan stands out as an exceptional model for digital transformation in the financial sector, blending strategic vision, technological innovation, and economic reforms to emerge as a distinguished regional financial hub. Through the ambitious 'Digital Kazakhstan' program, the country has achieved significant leaps in financial services and public financial management, supported by a robust digital infrastructure, flexible legislation, and global partnerships.
This article explores Kazakhstan’s journey toward leadership in financial technology, its remarkable achievements, and its future aspirations that position it to reshape the global financial landscape.Digital Transformation Driven by a National StrategyKazakhstan’s digital transformation began with the launch of the 'Digital Kazakhstan' program in 2018, aimed at digitizing key economic sectors. The banking sector led this transformation, with digitalization creating over 120,000 jobs and attracting $80 million in foreign investments within just two years. By mid-2024, digital payments accounted for 89% of transactions, placing Kazakhstan on par with digitally advanced nations like Sweden and Singapore. Applications like Kaspi.kz, serving 12 million monthly users, have redefined banking services by offering a comprehensive experience that integrates payments, e-commerce, and transportation. This super-app has become an integral part of the country’s digital infrastructure, providing diverse services such as bill payments, transportation bookings, and financial transaction management with ease and efficiency
.According to the Organization for Economic Cooperation and Development (OECD) 2025 report, the rapid integration of artificial intelligence (AI) in Kazakhstan’s financial sector has improved banking operational efficiency by 30% compared to regional benchmarks. Supportive government policies, such as the establishment of the Ministry of Artificial Intelligence and Digital Development, have enhanced the country’s ability to meet the demands of the digital era. This national strategy extended beyond banking to include the digitization of government services, enabling Kazakhstan to rank 24th globally in the United Nations E-Government Development Index (EGDI) for 2024, surpassing countries like Germany and China.Technological Innovations Enhancing Financial InclusionThe introduction of digital identity and biometric systems marked a pivotal turning point. In 2020, the National Bank launched a remote biometric identification system, facilitating access to banking services without the need for branch visits. By 2024, the national biometric authentication framework strengthened security and reduced fraud by 40%, boosting customer trust.
The launch of instant payment systems and QR codes led to 2.1 billion digital transactions in the first eight months of 2024, reflecting the efficiency of the digital infrastructure. These systems have transformed Kazakhstan into a cashless economy, with over 81 million registered payment cards and 26 million active online banking users—a figure exceeding the country’s population.Additionally, Kazakhstan launched the Digital Tenge (CBDC) project in 2020, with hybrid blockchain trials conducted by 2024-2025. This initiative aims to enhance the efficiency of cross-border payments and expand financial inclusion in rural areas. According to Binur Zhalenov, Chief Digital Advisor at the National Bank, “The Digital Tenge represents a pioneering step toward a future of finance driven by innovation and security” (Source: LinkedIn, 2025). The launch of a regulatory sandbox for digital assets in July 2025 enables the testing of Tenge-backed stablecoins, enhancing the appeal of local financial instruments.Fintech Ecosystem and InnovationKazakhstan has witnessed remarkable growth in its fintech sector, with the number of startups quadrupling since 2018 to over 200 by 2025. These companies offer innovative solutions in digital lending, AI-supported financial planning, and blockchain applications. For instance, opening an online bank account takes just three minutes, and digital loan processing is completed in under two minutes.
The introduction of Open Banking and Open APIs in 2023 has enabled customers to manage their accounts through a single platform, fostering competition and reducing costs by an average of 15%.According to the Asian Productivity Organization’s 2024 report, the growth of digital financial services in Kazakhstan has increased productivity in other sectors by 25%. Partnerships with global giants like Binance and KPMG through the Astana International Financial Centre (AIFC) have bolstered foreign investment. With Almaty hosting the World Federation of Central Depositories (WFC2025), Kazakhstan is solidifying its position as an emerging global financial hub.Legislative Reforms and CybersecurityKazakhstan is strengthening its position through comprehensive legislative reforms, including a new banking law addressing digital assets and fintech. Expected to be adopted by the end of 2025, this law aligns with global standards from the European Union and the UAE, focusing on consumer protection and innovation.
As stated by the Agency for Regulation and Development of the Financial Market to Astana Times, “The draft law resulted from a comprehensive review of existing banking standards, with the development of regulatory and supervisory methods and consumer protection” (Astana Times, 2025). Cybersecurity measures, such as the establishment of a National Anti-Fraud Center in 2024, have enhanced financial system protection by 35% compared to the previous year.With internet coverage reaching 92% of the population and the expansion of 5G networks, Kazakhstan boasts a robust digital infrastructure.
The launch of SpaceX’s Starlink service in Kazakhstan has improved connectivity in remote areas by 20%, supporting financial inclusion. Digital literacy programs targeting the training of 100,000 IT specialists by 2026 have further strengthened the workforce’s capabilities.Astana International Financial Centre and Future ProspectsThe Astana International Financial Centre (AIFC) is a cornerstone of Kazakhstan’s success, attracting over 3,000 global companies since 2018 and securing $11 billion in investments. Ranked as the top financial center in Eastern Europe and Central Asia in the Global Financial Centres Index (GFCI 38), the AIFC is a key driver of economic growth. Forecasts indicate a 5.4% GDP growth by 2026, supported by financial reforms that enhance economic diversification and investor confidence. The launch of the Solana Economic Zone in 2025, the first of its kind in Central Asia, further cements Kazakhstan’s position as a blockchain innovation hub.Building Digital SovereigntyKazakhstan is rapidly adapting to the digital era through bold initiatives, such as establishing the Ministry of Artificial Intelligence and Digital Development, accelerating the adoption of digital laws, and expanding the use of the Digital Tenge across all budget levels. The country also launched a Government Digital Assets Fund as a reserve for cryptocurrencies and established Alatau City as a fully digital urban area. According to President Kassym-Jomart Tokayev in his 2024 State of the Nation address, “The resources of the National Fund should be used prudently to finance promising small-scale projects with strong market potential” (Akorda, 2025). These initiatives aim to achieve digital sovereignty and elevate Kazakhstan’s status as a global technology hub.Digital Transformation as a Driver of Systemic DevelopmentInternational organizations view digitalization as a catalyst for structural transformation. According to the OECD’s 2025 report, AI is a versatile technology capable of boosting productivity in financial sectors by up to 20%.
Kazakhstan, ranked third in Central Asia and the Global Innovation Index for 2024, leverages these insights to expand its digital solutions. For example, the digitization of government services has saved 51.3 billion Tenge ($95.1 million) in the economy while reducing administrative barriers by 30%.International cooperation, such as Telegram’s entry into the AIFC in 2025, has enhanced Kazakhstan’s appeal to global tech firms. The launch of the Tech Orda program to train 100,000 IT specialists and the AI Qyzmet program to equip civil servants with AI skills ensures a workforce ready to tackle digital challenges.Boosting Budget Revenues with Digital ReformsAmid this digital transformation, Kazakhstan has seen a significant increase in public budget revenues, rising by 23.4% in 2025 to 21.6 trillion Tenge (approximately $40 billion), as revealed by President Kassym-Jomart Tokayev during his meeting with Finance Minister Madi Takiyev on October 8, 2025. Of these revenues, 15.2 trillion Tenge ($28.2 billion) came from taxes, reflecting stronger financial performance compared to the previous year.
The republican budget was executed at 101.6% in the first nine months of 2025, with a strong focus on social spending, which accounted for over 60% of the total, reinforcing the commitment to human development and social welfare.Special attention was given to the implementation of the new Public Procurement Law, which reduced procedural timelines by 20 times and increased transparency through automated tender processes, allocating 70% of contracts to local producers. This law boosted the participation of small and medium enterprises by 25%, contributing to the e-commerce sector’s growth to 12% of total retail in 2025, up from 1.8% in 2019.
The full automation of analysis and oversight in the treasury’s information system saved 7.5 billion Tenge in administrative costs.Within the broader digital finance agenda, the government focused on building big data capabilities and integrating AI into tax and customs operations, reducing fraud and recovering 850 billion Tenge in illicitly acquired assets. These funds were redirected to construct 10 schools, 4 sports facilities, 235 healthcare facilities, and 177 water infrastructure projects.
Government audits, including 791 inspections between January and August 2025, uncovered financial violations worth 337.5 billion Tenge (approximately $624 million), underscoring the government’s commitment to financial discipline.Challenges and Future OpportunitiesDespite its achievements, Kazakhstan faces challenges such as market concentration in the fintech sector and connectivity gaps in rural areas.
However, its ambitious digital roadmap, including the expansion of 5G and satellite internet through partnerships with SpaceX and Amazon Kuiper, ensures continued growth. The launch of Central Asia’s first supercomputer (alem.cloud) in 2025 enhances research and development capabilities in AI.ConclusionKazakhstan is not just a regional success story but a global model for harnessing technology to achieve financial inclusion and economic growth. By combining supportive government policies, advanced infrastructure, and private-sector innovation, the country has positioned itself at the forefront of digital banking transformation. As digital assets and AI continue to evolve, Kazakhstan looks toward a future that solidifies its role as a global financial hub, inspiring other nations to follow its ambitious path.
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Kazakhstan: From Digitalization to Global Financial Leadership
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