USAID to assist Tajikistan with creation of FEZs

DUSHANBE, January 17, Asia-Plus  — Issues of cooperation between the United States Agency for International Development (USAID) and Tajikistan in creating free economic zones (FEZs) were discussed at a meeting of Odil Sangov, first deputy head of Tajikistan’s Chamber of Commerce and Industry (CCI), with Sergey Panyutin,, senior legal adviser, the USAID Business Environment Improvement […]

DUSHANBE, January 17, Asia-Plus  — Issues of cooperation between the United States Agency for International Development (USAID) and Tajikistan in creating free economic zones (FEZs) were discussed at a meeting of Odil Sangov, first deputy head of Tajikistan’s Chamber of Commerce and Industry (CCI), with Sergey Panyutin,, senior legal adviser, the USAID Business Environment Improvement Project (BEI), in Dushanbe on January 16, CCI’s press service said.  

In the course of the talks the two discussed issues related to creation of FEZs in Tajikistan and world experience in creation of FEZs. 

 Mr. Panyutin, in particular, noted that there were two ways of creation of FEZ: 1) on the basis of exiting infrastructure: and 2) on the empty territory.  He proposed to invite foreign experts to advice on creation of FEZs in the country.   

For his part, Sangov noted that there ought to invite experts from country which would have geographic and economic conditions similar to those in Tajikistan.  “The Czech Republic has good experience and experts from CzechInvest participated in creation of FEZs in some CIS states,” said Sangov, “Specialists from Turkey, the United States and the United Arab Emirates (UAE) could also be invited.” 

In the meantime, the Ministry of Economic Development and Trade (MoEDT) has on creating FEZs in Khatlon’s Qumsangir and Danghara districts in the territory of 80 ha, as well as in Khujand, Sughd province (60 ha) and Gorno Badakhshan.   

Many countries have, or have had at some time, designated free economic zones, where companies are taxed very lightly or not at all to encourage development or for some other reason.  

Launched in October 2006, the 4-year BEI project supports USAID’s strategic objectives in Kazakhstan, Kyrgyzstan and Tajikistan by providing direct consultation and support to build capacity within government and private sector counterparts to promote effective dialogue, improve implementation of business-related legal reforms and streamline administrative processes for the benefit of small and medium enterprises (SMEs).

The goal of the BEI Project is to promote entrepreneurship and economic development by reducing the legal, regulatory, and administrative burden for SMEs by working with governments to streamline legal and regulatory processes and facilitate informed and effective dialogue between the private and public sectors. Constructive, multi-party engagement in the reform process will result in better SME policies, deregulation at the local, national and regional level, proper implementation of laws and regulations and stronger business associations, leading to an improved business environment for SMEs and to a more diversified economic growth.         

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