New ADB Strategy for Kazakhstan to Support Decarbonization, Inclusive Growth

ASTANA — The Asian Development Bank (ADB) has launched a new 5-year country partnership strategy (CPS) for Kazakhstan to help the Central Asian nation achieve a more diversified, inclusive, and sustainable economy.

The CPS covering 2023–2027 will focus on three strategic priorities—addressing the impacts of climate change and decarbonizing the economy; promoting inclusive economic growth; and strengthening governance. The priority sectors are energy, finance, public sector management, transport, and urban development. The new CPS is aligned with Kazakhstan’s Strategy 2050 and medium-term economic policy.

“Our new partnership strategy responds to Kazakhstan’s needs as an upper middle-income country and will help the government address key challenges as it continues to develop a more inclusive and sustainable modern economy,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

Kazakhstan is the largest country in Central Asia—both in the size of its economy and in surface area—and plays a key role in the development of the subregion. To enhance its economic resilience, the nation needs to accelerate economic diversification by reducing its reliance on carbon-intensive extractive industries and implementing structural reforms.

In April, following a request from the Ministry of Energy of Kazakhstan, ADB began exploring opportunities to accelerate the retirement of coal and other fossil fuel plants in the country and replace or repurpose them with clean energy under the bank’s Energy Transition Mechanism program.

“Our new CPS focuses on enhancing the country’s economic resilience, addressing climate change, improving governance, boosting human development, and reducing inequalities,” said ADB Country Director for Kazakhstan Nariman Mannapbekov. “These areas are especially relevant in the current global and regional context.”

Under the new CPS, ADB will support structural reforms through programatic and policy-based operations. The bank will provide knowledge solutions, support policy dialogue, and help to strengthen the capacity of government institutions. ADB will also expand its private sector operations including public–private partnerships, and support the country’s reforms in finance, agribusiness, and state-owned enterprises.

Kazakhstan was the first Central Asian country to join ADB, becoming a member in 1994. ADB has since approved more than $6 billion in loans to the government and private sector, and in grants to finance technical assistance.

ADB is helping the country develop and upgrade its regional connectivity, support private sector enterprises, foster gender and social equality, and deliver knowledge products and services. Regional cooperation and integration initiatives under the Central Asia Regional Economic Cooperation (CAREC) program remain an integral part of ADB operations in Kazakhstan.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.