DUSHANBE, September 27, 2010, Asia-Plus — Though the business environment has improved in Tajikistan due to carrying out reforms, the country still has to do a lot, Rashad Kaldany, Vice President of International Finance Corporation (IFC) for Asia, Eastern Europe, Middle East, and North Africa, said on September 25.
Tajikistan’s position in the Doing Business Rankings (the country is ranked 152nd) shows that not everything is still all right. “First of all, it concerns access to finance,” aid Mr. Kaldany, “It is very hard to get loans for the period more than year and the interest rates are very high. Besides, electricity shortage remains a serious problem for enterprises.”
According to him, it is also necessary to work on tackling problems related to taxation of private enterprises and regulation of entrepreneurial activity in the country. “It is necessary to simplify the process of starting business, reduce the number of permits and licenses that are required for starting business,” the vice president said.
He also expressed hope that IFC could help Tajikistan tackle problems in various sectors, especially those related to access to finance and electric power.
Mr. Kaldany stressed that the current security situation in Tajikistan might cause concern of foreign investors. “However, there is great interest in investing in the country’s economy,” said he, “But actualization of all this will depend on the situation in the country.”
Rashad Kaldany, who visited Tajikistan from September 23 to 25, met with Tajikistan’s Prime Minister, Oqil Oqilov, and with IFC clients in the country.
According to press release issued by the IFC Dushanbe Office on September 27, Kaldany noted that IFC is exploring opportunities to invest in agribusiness; renewable energy, including hydro power generation; infrastructure; and financial markets while IFC Advisory Services will focus on improving the regulatory environment for small and medium businesses.
He highlighted IFC’s aim to expand its investment and advisory program in Tajikistan to support businesses as they overcome the effects of the global financial crisis and foster sustainable development.
“Central Asia, and Tajikistan in particular, are priority areas for IFC,” said Kaldany. “IFC is committed to supporting private sector development in Tajikistan, and our focus is on helping unlock the country’s significant natural resource potential, diversifying the rural economy, and supporting the small and medium enterprises that create jobs.”
IFC has expanded its investment program in Tajikistan significantly in the last three years with commitments of $23 million in 11 projects in the financial markets, manufacturing, and infrastructure sectors. IFC’s advisory program in the country is the largest among Central Asian countries. Existing programs focus on developing financial markets through credit information systems, microfinance, agricultural finance, and leasing. IFC’s corporate governance program promotes transparency and good governance in larger corporations. IFC also is advising the government of Tajikistan on attracting private sector investment to develop its Konimansur Kalon Silver deposits.
