Economic Reforms. After gaining independence, the country has been implementing economic reforms and institutional and structural changes on a regular basis, which is very important and reasonable for improvement of the banking and financial system meeting the contemporary international standards requirements.

During 20 years of independence, a number of challenges and barriers existing in the new society have been addressed, a ground for establishment of independent country was laid, large-scale construction and development activities as well as steady economic and social reforms started, achieving energy sufficiency, ensuring country’s connectivity with other countries of the world and ensuring food security were identified as strategic priorities of the Government’s policy.

Since 1997, i.e. since the achievement of peace, the country’s economy started growing. Even, in 2009, when the global economic and financial crisis reached its height, Tajikistan was able to minimize the affect of the crisis on the counry’s economy and preserve positive economic growth dynamic.

The Republic of Tajikistan implements its economic relati­ons within the international platform based on the principles of mutually beneficial partnership and cooperation. Consistent efforts of the country’s President in this aspect are aimed at boosting cooperation with development partners and the world community, which significantly increased the reputation of Tajikistan during its independence period among the international community.

By the direct initiative and support of the President of the country Emomali Rahmon the Government of Tajikistan established sustainable economic relations with high-ranking international organizations and developed countries of the world, which have been making contribution in the implementation of the country’s economic reform policy and improvement of population’s living standards.

As early as at the beginning of the 21st century, i.e. in 2000, by the initiative of the President, the Government of the Republic of Tajikistan signed the United Nations Millenium Declaration together with 191 countries of the world. To this end, the Government of Tajikistan has implemented measures within its commitments to ensure international cooperation and to achieve Millenium Development Goals.

In 2010, since the beginning of the Millenium Declaration has passed ten years and by the initiative of the United Nations International Summit on Millenium Development Goals was held to review the achievement of member states.

Emomali Rahmon, the President of the Republic of Tajikistan, in person participated in this important international event, which was held in the United Nations Headquarters in September 2010, and presented the achievements of the Republic of Tajikistan to the world community. In this international event, the country’s President called the world community for paying an utmost attention to the sustainable development issues, finding ways out of long-lasting challenges, including climate change, preservation of biodiversity and boosting cooperation in terms of water use.

With the view to establishing ground for sustainable econo­mic development in the country, by the initiative and support of the President, National Development Strategy (to 2015) and several other midterm strategies and programmes, which would make it possible to achieve the Millenium Development Goals, were developed and adopted and are under implementation at present. Tajikistan identified and included its priorities in these strategic documents and has been making efforts to achieve its strategic goals.

Effective implementation of strategic documents, rehabilitation of economy and achieving sustainable macroeconomic growth made it possible to reduce the poverty from 72.4% in 2003 to 46.7% in 2009.

The country’s President personally oversees reform process in all sectors of the country’s economy and implementation of national priorities through fruitful cooperation with development partners on a regular basis. In this regard, the President established National Development Council, which is responsible for ensuring implementation of the National Development Strategy and midterm strategies by encouraging foreign direct investments and contribution of development partners with a view to improving the population’s living standards.

Strategic documents on social and economic development such as National Development Strategy (to 2015) and the second midterm Poverty Reduction Strategy (2010-2012) are under implementation in the country. The goal and importance of adoption of these programs is to improve the population’s living standards, particularly socially vulnerable groups of people through ensuring economic development, making Tajikistan a democratic developed country, where people can benefit from all achievements of the political, economic and social development. A series of challenges were overcome in order to achieve these goals and now, Tajikistan became a country with established modern market-based economy and has laid a ground for implementation of its large-scale sustainable economic development plans.

The reforms and efforts enabled to improve the economic development trend lately, which promoted stabilization of macroeconomic indicators.

The country’s GDP has increased by 2.6 times since 1997, and its average growth  has been equal to 7.1% per year. This level of economic development was achieved thanks to the consistent improvement of all sectors of the country’s economy.

From 1997 to present, the production of manufactured products  increased by 2.5 times and the agricultural output by 2.8 times, the cargo shipment with the use of all types of transport by 1.7 times, passenger delivery by 4.3 times, retail trade by 3.2 times and real services to population by 7.8 times, the public budget by 75  times, GDP by 36.3 times per capita and monetary income of the population by 38 times accordingly.

During the independence period, a number of measures were implemented and more than 80 sectorial programmes were adopted with the view to ensuring national economic development, which promoted the improvement of different sectors of the national economy and population’s living standards.

Within the implementation of its Food Security Programme, Tajikistan has been implementing its national priorities based on the principle of partnership and boosting international cooperation and has been making constant efforts to improve its mutually beneficial economic relations at the regional and international levels.

In this regard, collaboration with international organizations, particularly with the UN FAO, UN WFP, World Bank Technical Assistance Programme on the food security in terms of food availability, accessibility and consumption in the country as well as on implementation of Program measures related to cooperation on resettling the exising challenges and coordination of joint programmes to ensure food security are established.

With the view of establishing the network of Trade Representatives Offices of Tajikistan in the regions favourable for production of local goods, practical measures have been implemented and at present, there are Trade Representative Offices in 23 countries of the world.

Having taken into account the importance of investment encouragement and study of the external market demands to local products and goods, the Chamber of Commerce and Industry of the country has established its representative offices in more than ten countries and individual areas of foreign countries.

In 2010, a number of measures were undertaken with a view to improving the business environment. As a result, Tajikistan has been included into the list of top ten reformers in the World Bank “Doing Business” Report for two years consequently. In 2010, the rating of Tajikistan increased by 13 points. Currently, a number of practical measures have been undertaken in order to regulate and harmonize existing laws and other legal and regulatory documents for ensuring effective and transparent business activities.

According to the Plan of measures for celebration of the 20th anniversary of the state independence of the Republic of Tajikistan, a number of important facilities, including the construction of “South-North” power transmission line with the capacity of 500kW and electric power substation of “Dushanbe” with the capacity of 500kW, construction of the tunnel of “Ozodi”, construction of  highways of “Dushanbe-Chanoq”, “Kulob-Qal’ai Khumb-Kulma-Qaroqurum”, renovation of the highway of “Dusti-Panji poyon” (1st and 2nd phases) were commissioned.

In general, since the attainment of official independence, Tajikistan made a lot of economic achievements, some of which are as follows:

– the country’s transition to the market-based economy, establishment of different types of property, including private property;

– restoration of commercial relations with other countries, membership to high-ranking and authoritative international and regional organizations;

– construction of railways and highways.

During the independence period, with a view to reducing the distance in the highways of Dushanbe-Khujand and Dushanbe-Norak-Kulob tunnels were constructed and commissioned. Other tunnels are also under construction. It is expected to construct a highway connecting three Persian-speaking countries of Tajikistan, Afghanistan and Iran;

– construction of hydropower plants with a view to ensuring the country’s energy sufficiency, including the contruction and commissioning of HPP “Sangtuda-1” and continuation of construction activities in HPP “Sangtuda-2”, “Roghun” and other small and big power plants. In total, 235 small HPPs with the capacity from 5 to 2500kW were constructed and commissioned in Tajikistan after the attainment of official independence.

– with a view to ensuring food security in the country, significant number of measures have been implemented and sectorial programmes, which will make it possible to increase the production of agricultural and manufactured products and to improve the living standards of population, have been adopted. It should be pointed out that significant amounts are allocated from the public budget every year for implementation of these programmes.

– establishment of small and large industrial and agricultural enterprises, schools, cultural and leasure facilities, cultural centers, apartment houses, medical and recreation facilities and so forth.

Soure: www.president.tj

Latest information about economic performance

Ministry of Economic Development and Trade

National Bank of Tajikistan