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Kazakhstan Aims to Reduce Shadow Economy Using AI; SCAT Airlines to Start Cargo Flights

Kazakhstan’s Strategy to Curtail Shadow Economy Through AI Integration
Kazakhstan has unveiled a comprehensive plan for 2026–2028 aimed at significantly reducing the size of its shadow economy by harnessing artificial intelligence, the digital tenge, and broader digitalization efforts. The government’s objective is to lower the shadow economy’s share of GDP from an estimated 16.7% in 2025 to 13.8% by 2028, building on prior reforms that successfully reduced it from 24% in 2019.
The initiative encompasses 53 targeted measures spanning key sectors such as trade, construction, transport, agriculture, healthcare, and education. Central to this strategy is the development of a unified AI-powered platform designed to consolidate data from various state agencies. This platform will enable real-time detection of hidden economic activities and risk identification. Additional components include enhanced regulation of online marketplaces, expanded digital labeling, increased utilization of the Digital Bazaar, and wider adoption of the digital tenge to improve transparency in public spending.
Government officials stress that the plan aims to foster fair competition, enhance business transparency, and increase budget revenues without imposing additional burdens on entrepreneurs. Nevertheless, the initiative faces considerable challenges, including the need for substantial investment in technological infrastructure and potential resistance from businesses accustomed to informal economic practices. Initial skepticism from both the business community and consumers is anticipated. However, if effectively implemented, these reforms could lead to long-term improvements in transparency and a more competitive business environment. The move may also prompt neighboring countries to bolster their own AI capabilities to remain competitive in the region.
Expansion of SCAT Airlines’ Cargo Operations and Regional Economic Developments
In a notable development within Kazakhstan’s aviation sector, SCAT Airlines is preparing to launch dedicated cargo flights, marking a significant expansion of its operational scope. The airline plans to introduce a Boeing 767-300ER converted freighter to meet the rising demand for air cargo services. While this expansion is expected to increase cargo capacity and open new business opportunities, SCAT Airlines will need to navigate challenges such as high operational costs and intense competition from established freight carriers. This move is likely to intensify competition in the cargo market, compelling rival airlines to adjust their services to maintain market share.
Meanwhile, regional economic dynamics continue to influence Kazakhstan’s economic landscape. In Romania, concerns have emerged over a potential fuel market crisis following Kazakhstan’s suspension of crude oil deliveries via the Caspian Pipeline Consortium (CPC), which accounts for 63% of Romania’s crude oil imports. The disruption, caused by security incidents at the CPC’s Black Sea terminal, threatens the operations of Romania’s largest refineries and has prompted urgent calls for government intervention.
On the trade front, Morocco and Kazakhstan have established a new business council aimed at enhancing bilateral trade and investment. Initiated by the General Confederation of Moroccan Enterprises (CGEM), the council seeks to promote partnerships across sectors including fertilizers, agriculture, logistics, infrastructure, energy, digital technology, and artificial intelligence. Trade between the two nations has surged by 68% since 2021, surpassing $460 million, yet officials believe there is substantial potential for further growth. Morocco positions itself as a strategic gateway to African and European markets, while Kazakhstan offers access to Central Asia. Both countries are focused on encouraging investment and fostering industrial cooperation.
As Kazakhstan advances its digital transformation and economic diversification efforts, the success of these initiatives will hinge on overcoming technological, regulatory, and market challenges, while adapting to evolving regional conditions.

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