Kazakhstan will open foreign trading companies to stabilize prices

QazTrade JSC, in order to reduce inflationary pressure on the market, as well as to minimize the risk of shortage of seasonal fruits and vegetables, is creating foreign companies.  A joint Kazakh-Uzbek company has already been registered and opened, World of NAN reports with reference to the press service of the Trade Policy Development Center.

"UZKAZTRADE LLC will operate exclusively on a parity basis, i.e. the company will be managed both by representatives of QazTrade and our colleagues from UzTrade on a 50/50 basis," Nuraly Bukeykhanov, General Director of QazTrade JSC, specified.

The joint export-import company aims to provide the Kazakhstani consumer with vegetables and fruits at wholesale prices. In this case, a long chain of intermediaries is excluded. For example, during the preliminary negotiations with Uzbek dehkans, an agreement was reached on the wholesale purchase of fruit and vegetable products in Kazakhstan.

"It is important to note that the company does not plan to make profit and is not going to add the so-called commercial margin on imported products. Only a small markup is possible, which will cover minimal administrative expenses. But given the scale of supply it will not have a significant impact on the final price of goods," explained the head of QazTrade.

According to Nuraly Bukeykhanov, a similar joint Kazakh-Pakistani company is at the launch stage in the city of Lahore. Also, in the near future QazTrade plans to register its own subsidiary in the city of Dushanbe, Republic of Tajikistan.

Export-import companies with Kazakhstani participation will be engaged in supplying socially important products to socially-entrepreneurial corporations and major trading networks. At the same time, joint ventures do not have any preferences. The purchase will be carried out only if the price of the products offered is lower than the average market price. This approach will make it possible to keep inflation on certain items of goods.

It is assumed that joint companies will also export Kazakh flour, fruit and vegetable and oil products to Uzbekistan, Pakistan and Tajikistan, but on market conditions.

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