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Business images of Tajikistan

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.

126 Live Notices for Tajikistan ....

Showing 1 to 20

Distance Learning Platform Firm (Dlpf)
country Tajikistan
posting date20 Jan 2025
deadline18 Feb 2025
Design And Supervision Of Civil Works And Equipment
country Tajikistan
posting date20 Jan 2025
deadline23 Feb 2025
Development and implementation of additional functions of the human resources management information system of the State Service Agency under the President of the Republic of Tajikistan
country Tajikistan
posting date20 Jan 2025
deadline22 Jan 2025
PIU support and construction supervision consultant for the whole project
country Tajikistan
posting date20 Jan 2025
deadline16 Feb 2025
Grant-0926 Taj: Improving The Science, Technology, Engineering, And Mathematics Secondary Education Project - Cs02 Distance Learning Platform Firm (Dlpf) (54299-001)
country Tajikistan
posting date20 Jan 2025
deadline18 Feb 2025
Grant-0957 Taj: Maternal And Child Health Integrated Care Project - Additional Financing - Cs02 Design And Supervision Of Civil Works And Equipment (51010-004)
country Tajikistan
posting date20 Jan 2025
deadline23 Feb 2025
Ta To Develop National Air Ambulance Concept Note Under Ministry Of Health And Social Protection Of The Population
country Tajikistan
posting date18 Jan 2025
deadline31 Jan 2025
supply of starter batteries (90 Ah)
country Tajikistan
posting date17 Jan 2025
deadline27 Jan 2025
Maintenance of the Automatic Power System of the Wind Power Plant for 2025
country Tajikistan
posting date17 Jan 2025
deadline27 Jan 2025
Provision for Design of retail outlets and supply of POS materials
country Tajikistan
posting date17 Jan 2025
deadline27 Jan 2025
Provision for Electrical engineer for construction supervision.
country Tajikistan
posting date16 Jan 2025
deadline03 Feb 2025
Provision for Project Construction Engineer
country Tajikistan
posting date16 Jan 2025
deadline03 Feb 2025
Provision for employee selection
country Tajikistan
posting date16 Jan 2025
deadline28 Jan 2025
Design, Supply and installation of Weight and Dimensional Control system, Weigh-inmotion (WIM) equipment along Dushanbe - Tursunzade highway and Dushanbe – Bokhtar highway
country Tajikistan
posting date16 Jan 2025
deadline28 Feb 2025
Provision for Construction of a new 1-story administrative building and major renovation of the existing facilities of the Vose district water supply and sewerage department
country Tajikistan
posting date16 Jan 2025
deadline10 Feb 2025
selection of a purchasing specialist
country Tajikistan
posting date16 Jan 2025
deadline27 Jan 2025
Rehabilitation Of Irrigation Canals In Tajikabad District
country Tajikistan
posting date16 Jan 2025
deadline12 Feb 2025
Design, Supply and installation of Weight and Dimensional Control system, Weigh-inmotion (WIM) equipment along Dushanbe - Tursunzade highway and Dushanbe – Bokhtar highway
country Tajikistan
posting date15 Jan 2025
deadline28 Feb 2025
PIR construction and installation work for 2025
country Tajikistan
posting date14 Jan 2025
deadline24 Jan 2025
Ta-10159 Reg: Achieving Climate Change Objectives Through Public Financial Management Reforms - Iga International Governance Assessment Expert (Tajikistan) (57091-001)
country Tajikistan
posting date14 Jan 2025
deadline27 Jan 2025

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