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Economy of Tajikistan

The economy of Tajikistan is dependent upon agriculture and services. Since independence, Tajikistan has gradually followed the path of transition economy, reforming its economic policies. With foreign revenue precariously dependent upon exports of cotton and aluminium, the economy is highly vulnerable to external shocks. Tajikistan's economy also incorporates a massive black market, primarily focused on the drug trade with Afghanistan. Heroin trafficking in Tajikistan is estimated to be equivalent to 30-50% of national GDP as of 2012. In the fiscal year (FY) 2000, international assistance remained an essential source of support for rehabilitation programs that reintegrated former combatants of the Tajikistani Civil War into the civilian economy, thus helping maintain the peace. International assistance also was necessary to address the second year of severe drought that resulted in a continued shortfall of food production. Tajikistan's economy grew substantially after the war. The gross domestic product (GDP) of Tajikistan expanded at an average rate of 9.6% over the period of 2000-2007 according to the World Bank data. This improved Tajikistan's position among other Central Asian countries (namely Turkmenistan and Uzbekistan), which have degraded economically ever since. As of August 2009, an estimated 60% of Tajikistani citizens live below the poverty line. The 2008 global financial crisis has hit Tajikistan hard, both domestically and internationally. Tajikistan has been hit harder than many countries because it already has a high poverty rate and because many of its citizens depend on remittances from expatriate Tajikistanis.

Top Sectors in Tajikistan

Agriculture in Tajikistan

Although the government has announced an expedited land reform program, many Soviet-era state farms still existed in 2006, and the state retains control of production and harvesting on privatized farms. Privatization of cotton farms has been especially slow, and unresolved debts of cotton farmers remained a problem in 2006. In the early 2000s, the major crops were cotton (which occupied one-third of arable land in 2004 but decreased after that date), cereals (mainly wheat), potatoes, vegetables (mainly onions and tomatoes), fruits, and rice. Cotton makes an important contribution to both the agricultural sector and the national economy. Cotton accounts for 60 percent of agricultural output, supports 75 percent of the rural population, and uses 45 percent of irrigated arable land. More than 80% of the 8,800 square kilometers of land in use for agriculture depends on irrigation. Tajikistan must import grain from Kazakhstan and Uzbekistan.

Mining in Tajikistan

Tajikistan has rich deposits of gold, silver, and antimony. The largest silver deposits are in Sughd Province, where Tajikistan's largest gold mining operation is also located. Russia's Norilsk nickel company has explored a large new silver deposit at Bolshoy Kanimansur. Tajikistan also produces strontium, salt, lead, zinc, fluorspar, and mercury. Uranium, an important mineral in the Soviet era, remains in some quantity but is no longer extracted. Fossil fuel deposits are limited to coal, of which about 30,000 tons are mined annually. Tajikistan's extensive aluminium processing industry depends entirely on imported ore.

Energy in Tajikistan

The rivers of Tajikistan, such as the Vakhsh and the Panj, have great hydropower potential, and the government has focused on attracting investment for projects for internal use and electricity exports. Tajikistan is home to the hydroelectric power station Nurek, the second highest dam in the world. Sangtuda 1 Hydroelectric Power Plant of 670 megawatts (MW) capacity, operated by Russian Inter RAO UES, commenced operations on 18 January 2008 and was officially commissioned on 31 July 2009. Other projects at the development stage include Sangduta 2 by Iran, Zerafshan by Chinese SinoHydro and Rogun power plant, which, at 335 metres (1,099 ft), is projected to supersede the Nurek Dam as tallest in the world if completed. The Rogun Dam was originally planned to be built by Russia's Inter RAO UES, but following disagreements, Russia pulled out. In 2010, production resumed with Iranian investment and Chinese assistance. Besides hydropower, other energy resources include sizable coal deposits and smaller reserves of natural gas and petroleum. In December 2010, Russian Gazprom announced discovery of significant natural gas reserves in Sarykamish field with 60 bcm of natural gas, enough for 50 years of Tajikistan's domestic consumption. The national power company is Barqi Tojik. Tajikistan is a partner country of the EU INOGATE energy programme, which has four key topics: enhancing energy security, convergence of member state energy markets on the basis of EU internal energy market principles, supporting sustainable energy development, and attracting investment for energy projects of common and regional interest.

Tourism in Tajikistan

The tourism industry of Tajikistan was eliminated by the civil war, but has begun to re-establish itself in recent years. In 2018, the British Backpacker Society ranked Tajikistan as the 7th best adventure travel destination on earth. The Tajik Committee on Tourism Development responded to this accolade by stating that "the inclusion of Tajikistan in the British Backpacker Society’s top 20 adventure travel destinations testifies the development of tourism in [the] country.


Tajikistan - Key Economic Indicators

Exports and Imports

Tajikistan's main exports are aluminum, cotton, and fruits and vegetables. It imports machinery, fuel, and consumer goods. According to estimates, exports reached $1.816 billion USD in 2023, while imports were significantly higher at $5.182 billion USD. However, data for the first quarter of 2024 suggests a slight increase in exports compared to the same period in 2023, potentially indicating a positive trend.

Balance of Trade

Tajikistan consistently runs a trade deficit, meaning imports outweigh exports. This deficit is partially offset by remittances sent home by Tajik migrant workers, primarily in Russia. Remittances are estimated to have risen marginally in 2023, offering some relief to the trade imbalance.

Infrastructure Development

Tajikistan's infrastructure is developing, but significant gaps remain. The total road network is estimated to be around 31,000 kilometers, with a mix of paved and unpaved roads. As of 2022, investments are ongoing to improve transportation links, particularly in rural areas. Projects include highway construction and bridge repairs. However, challenges persist in power generation and water management infrastructure. The government is seeking international investment to address these infrastructure deficiencies.

Fiscal Policy

The Tajik government faces the challenge of balancing social spending with limited resources. Recent fiscal policy in 2023 focused on increasing tax revenue through stricter enforcement and attracting foreign investment through improved business regulations. Public debt remains high at around 73% of GDP in 2023, and the government is working to control spending while maintaining essential social programs.

Monetary Policy

The National Bank of Tajikistan is responsible for maintaining price stability and promoting economic growth. They use interest rates and foreign exchange interventions to manage inflation and support the Tajikistani Somoni currency. As of May 2024, the National Bank might raise interest rates to combat inflation, which is a concern for many developing economies. Recent data shows inflation at around 8% in April 2024.

Trade Agreements

Tajikistan participates in several regional trade agreements, including the Commonwealth of Independent States (CIS) Free Trade Area. The country is also working to expand trade partnerships with other countries, particularly in Asia. Recent efforts include negotiations for a free trade agreement with China.

Environmental Regulations

Tajikistan boasts rich natural resources, but environmental challenges exist. Regulations focus on areas like water pollution control, deforestation prevention, and sustainable land management. Balancing economic development with environmental protection remains an ongoing effort. The government recently announced plans to increase funding for environmental protection programs in 2024.

Tax System in Tajikistan

Capital Gains Tax: Tajikistan does not currently levy a separate capital gains tax. Profits from the sale of capital assets are generally taxed as regular income. This structure hasn't changed recently.
Corporate Tax Rate: Tajikistan has a flat corporate income tax rate of 18%. This rate applies to both resident and non-resident companies operating in the country. The government has not announced any plans to change this rate in the immediate future.
Sales Tax: Tajikistan levies a Value Added Tax (VAT) of 18% on most goods and services. However, some essential items like basic foodstuffs and medications are exempt. As of May 2024, there haven't been any major reported changes to the VAT rate.
Property Tax: Property tax rates in Tajikistan vary depending on the property type, location, and appraised value. Rates typically range from 0.1% to 1.2% for land and buildings. There haven't been any recent nationwide adjustments to property tax rates.
Payroll Tax: Tajikistan has a social security system funded by contributions from both employers and employees. The contribution rate structure (20-25% for employers, 1-2% for employees with capped income base) remains unchanged. However, the income cap might have been adjusted based on average wages in 2024. It's important to consult with a tax professional for the latest contribution caps.
Tax Deductions and Credits: Tajikistan offers various tax deductions and credits to reduce tax liability. These include deductions for business expenses, charitable donations, and certain investments. The government also provides tax incentives for specific industries and activities to promote economic development in priority sectors. The details of these deductions and credits can be subject to change, so it's advisable to consult with a tax professional for the latest information.
Tax Compliance: The Tajik government is working on improving tax collection efficiency. Recent efforts include digital tax administration tools and stricter enforcement measures to combat tax evasion. However, challenges remain, particularly in the informal sector.
Tax Burden: Compared to some developed economies, Tajikistan's tax burden is considered moderate. However, due to the ongoing trade deficit and reliance on remittances, the government might consider future adjustments to the tax system to increase revenue.

351 Live Notices for Tajikistan ....

Showing 1 to 20

Purchase Of Medicines For The Needs Of The Clinical Endocrinology Center Of The Sughd Region, Khujand City
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Medicines And Medical Supplies For The Needs Of Military Unit 051056 Of The National Guard Of The Republic Of Tajikistan Purchase Of Medicines And Medical Supplies For The Needs Of The Military Unit 051056 Of The National Guard Of The Republic Of Tajikistan
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Household, Plumbing And Construction Goods, Circulation Pump, Electric Motor, Corn And Wheat Plumbing Supplies, Plumbing And Soot, Pumps For Clothes, Electricians, Electricians And Electricians
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Hot Fine-Grained Asphalt Kharidi Asphalt Garmi Maydona
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Office Supplies, Household Goods And Consumables. Purchase Of Office Supplies, Consultations And Consumables.
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Household Goods Kharidi Molkhoi Khochagidori
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Office Supplies, Household And Electrical Goods, Cartridges, Petrol Lawn Mowers And Household Appliances Purchase Of Office Supplies, Household Appliances, Cartridges, Cartridges, Petrol Lawn Mowers And Household Appliances
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Plumbing And Electrical Goods, Building Materials, Electric Hand Tools, Bimetallic Radiators, Heat Exchangers And Electric Water Pumps Haridi Molkhoi Plumbing Barki, Masolehi Sokhtmoni, Asbobkhoi Barki Dasti, Radiatorhoi Bimetali, Heat Exchanger Va Nasoskhoi Obkashii Barki
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Automotive Spare Parts Kharidi Kismhoi Ehtiyoti Automobiles
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Current Renovation Of The Sports Ground, Offices And Courtyard Of The State Service For Supervision In The Energy Sector Current Renovation Of The Sports Ground, Offices And Courtyard Of The State Service For Supervision In The Energy Sector
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Stage Clothes And Women'S Shoes Haridi Libosi Sahnavi Va Poyafzoli Zanona
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Purchase Of Household Appliances, Car Tires, Office Chairs, Office Equipment, Building Materials, Household And Electrical Goods Purchase Of Household Appliances, Automotive Tires, Office Furniture, Office Equipment, Construction Materials, Household And Electrical Goods
country Tajikistan
posting date20 Nov 2024
deadline11 Dec 2024
Individual Consultant For Conducting Analysis And Assessment Of Current Opportunities In Creating Of The Online Platform For Agency For Supervision In The Sphere Of Education And Science (Asses).
country Tajikistan
posting date20 Nov 2024
deadline06 Dec 2024
Supply And Installation Of Solar Power Station For 60 Kwt In State Unitary Enterprise "Center For Digitalization And Advanced Training Of Agricultural Personnel".
country Tajikistan
posting date20 Nov 2024
deadline22 Nov 2024
Строительство Склада Для Хранения Вакцин И Материалов Для Иммунизации
country Tajikistan
posting date20 Nov 2024
deadline04 Dec 2024
Supervision Of Construction Works Of Agro-Logistic Centers In Balkhi District And Khujand City
country Tajikistan
posting date20 Nov 2024
deadline04 Dec 2024
Individual Consultant For Conducting Analysis And Assessment Of Current Opportunities In Creating Of The Online Platform For Agency For Supervision In The Sphere Of Education And Science (Asses).
country Tajikistan
posting date20 Nov 2024
deadline06 Dec 2024
Tajikistan - Europe And Central Asia- P169168- Early Childhood Development To Build Tajikistan?S Human Capital Project - Procurement Plan (English)
country Tajikistan
posting date20 Nov 2024
deadline19 Nov 2025
Purchase Of Spare Parts For Cars Purchase Of Spare Parts For Cars
country Tajikistan
posting date19 Nov 2024
deadline28 Nov 2024
Badge "Excellence In Education And Science Of Tajikistan" Badge "Excellence In Education And Science Of Tajikistan"
country Tajikistan
posting date19 Nov 2024
deadline28 Nov 2024

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