The Tajik authorities hope that development of free economic zones will promote further economic development of the country.
The 2017 SPECA (United Nations Special Programme for the Economies of Central Asia) Economic Forum took place in Dushanbe on December 5-6.
In his opening remarks at the meeting, Tajik Minister of Economic Development and Trade Nematullo Hikmatullozoda underscored that implementing innovation has a key importance for the countries in their willingness to achieve sustainable development.
He noted that the Ministry of Economic Development and Trade (MoEDT) had worked out and approved the import substitution and export development program.
The minister noted that the program, in particular, provided for improving the export situation in the key sectors of the country’s economy such as industry, energy, agriculture and so forth.
According to him, one of the ways to promote innovation development of the country is development of free economic zones operating in Tajikistan.
Meanwhile SPECA reports that the SPECA Governing Council, on recommendations from the Economic Forum entitled “Innovation for the SDGs in the SPECA Region,” held in Dushanbe, agreed to elaborate a regional innovation strategy to support the achievement of the Sustainable Development Goals (SDGs).
The meetings, held on an unprecedentedly high level with participation of experts from all SPECA countries, representatives of observer countries, development partners and civil society, reportedly underscored the importance of innovation as a driver for sustainable development.
Recall, currently there are four free economic zones operating in Tajikistan – FEZ “Danghara” (Khatlon province); FEZ “Panj” (Khatlon province); FEZ “Sughd” (Sughd province); and FEZ Ishkashim (Gorno Badakhshan Autonomous Region — GBAO). They provide preferential terms for economic, financial, trade, information, and other activities for investors. The FEZs offer incentives to investors, including preferences on taxation and customs procedures.
In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation. To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs. In 2004, the parliament passed a law on free economic zones. The zones reportedly offer customs and tax incentives to qualified investors that invest at least 500,000 USD and import at least 90% of the technology and equipment.
To-date, the Administration of the FEZ “Sughd” has registered twenty-tree corporate residents, including twenty local enterprises and three joint ventures. Actually, only eight of them are operational. Over the first ten months of this year, they have produced a total of only some 65 million somoni worth (equivalent to little more than 7 million USD) of goods.
The Administration of the FEZ “Danghara” to-date has registered seven corporate residents. Over the same ten-month period they produced a total of only some 16 million somoni goods.
As far as the FEZ “Panj” and FEZ “Ishkashim” are concerned, they are still not in operation.
