The Asian Development Bank (ADB) has approved a US$50 million grant to help the Government of Tajikistan enhance banking sector stability, boost the nonbanking finance sector, and strengthen fiscal management, says press release issued by the ADB Tajikistan Resident Mission (TJRM). The policy-based grant is the second phase of the Finance Sector and Fiscal Management Improvement Program.
“Tajikistan had been recovering from the pandemic rapidly, but new shocks from the ongoing geopolitical uncertainty have hampered the country’s outlook and reform efforts,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This policy-based financing is helping the government maintain critical structural reforms that will boost private sector-led sustainable and inclusive economic growth.”
The proposed Financial Sector and Fiscal Management Improvement Program reportedly aims to support the Government of Tajikistan with reforms to create a more stable financial system, enhance access to financial services, and improve fiscal management to accelerate sustainable private sector growth. The program will (i) enhance banking sector stability, (ii) improve the enabling environment for the financial sector, and (iii) strengthen public financial management.
Key reforms reportedly include increasing banking sector stability and public confidence in the financial system via strengthening the Individuals Deposit Insurance Fund, enhancing the ability of the National Bank of Tajikistan to monitor and manage financial stability, and strengthening banking supervision. The reforms also include improving the insurance industry and developing the domestic securities market and Islamic finance.
“To improve the business and investment environment, the program has introduced new electronic taxpayer services and climate-responsive taxation and enhanced the status of women in the finance sector and women’s entrepreneurship,” ADB Public Management Specialist for Central and West Asia Yuji Miyaki said.
“To strengthen fiscal management, the program has helped the Ministry of Finance to improve the budget process and transparency, strengthen oversight and accountability of state-owned enterprises, and implement a medium-term debt management strategy,” added ADB Senior Economist Muhammadi Boboyev.
ADB has coordinated closely with other development partners to ensure its initiatives complement those of other development actors, and to ensure the sustainability of the reforms. The bank has also combined its policy advice with financial assistance, implementation support, and capacity development.
Since Tajikistan joined ADB in 1998, the bank has provided over US$2.5 billion in assistance to the country, including over US$1.9 billion in grants. ADB’s 2021–2025 Country Partnership Strategy for Tajikistan focuses on three strategic priorities: structural reforms to enhance resource allocation and mobilization; improving labor productivity through human capital development; and fostering better livelihoods by investing in the land-linked economy.
Established in 1966, the Asian Development Bank is owned by 68 members—49 from the region.
