The Tajik authorities intend to regulate prices for essential goods. Meanwhile, experts note that “any government interference in free prices will inevitably affect availability and quality of products.”
The Government of Tajikistan last week approved a draft law on state regulation of pricing. Along with regulation of prices and rates for products and services set by companies dominating the country’s market, the law also provides for regulating prices of separate socially significant goods, a reliable source within one of economic cluster ministries told Asia-Plus in an interview.
According to him, the government will determine the list of the socially significant goods by a separate sub-decree.
The new law gives the government an opportunity to directly impact prices for essential goods in case of necessity. The relevant agencies will set prices taking into consideration territorial specifics, the source said.
The law is reportedly aimed at, first of all, protecting the population against the unfounded growth in prices for separate socially significant goods and regulating price inflation.
In accordance with the country’s antimonopoly legislation, companies accounting for 35 percent of market are put on the register of dominating companies.
Three entities with a total share of not less than 50 percent and five entities with a total share of not less than 70 percent are also put on the register of dominating companies.
Before introducing new fees, such companies must coordinate them with the Antimonopoly Agency.
In accordance with the law on protection of competition, the Antimonopoly Agency has prepared the list of socially significant goods, prices for which are liable for regulation. This list was endorsed by the government’s decree issued on May 30 last year. This list includes 16 items of goods, but the country’s legislation allows expanding this list.
Meanwhile, experts note that any government interference in free prices will inevitably affect availability and quality of products.
“Direct regulation of prices is now impossible in Tajikistan, because the state actually produces nothing today, while private companies will set prices taking into consideration their expenses as well as supply and demand on domestic markets,” Tajik economist Amriddin Hasanov said.
According to him, under conditions of market economy the fixed prices may be set only for products and services, “which are under natural monopoly.” For example, prices for electricity, water and so forth.
Economist Nour Safarov notes that under conditions of restricted financial, production, trade and other resources, an idea to regulate prices will mean only one thing — monopolization of the market and as a result, either a deficit or an increase in prices.
He further added that mostly companies, which use their dominant position and connection in government agencies to lobby their projects, now operate in the domestic market.
