The paper analyzes the development of the mechanical engineering industry of Kazakhstan, the activities of enterprises. The regulatory framework for the creation of industrial zones, a review of legislatively approved programs, concepts and plans for the development of machine-building enterprises opened in the industrial zone, complex localization processes taking place in them. The upcoming tasks of attracting investments with an emphasis on the development of competitive export industries, analysis with an emphasis on import substitution are considered. Mechanical engineering, through a multiplicative effect, contributes to the development of other key sectors of the economy – energy, mining and metallurgical industry, agro-industrial complexes, construction and transportation industries. Analysis of the mechanical engineering industry of Kazakhstan on the example of the development of mechanical engineering in the Kostanay region, analysis of regulatory documents, consideration of the results of industrialization, import substitution. Mechanical engineering is the basic systemforming branch of industry, the largest consumer and source of investment in the economy, which contributes to the growth of the quality of life of the population.