MANILA, PHILIPPINES (12 December 2022) — The Asian Development Bank (ADB) has approved a $50 million grant to help the Government of Tajikistan enhance banking sector stability, boost the nonbanking finance sector, and strengthen fiscal management. 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.”
Key reforms 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,” said ADB Public Management Specialist for Central and West Asia Yuji Miyaki.
“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 Boboev.
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 $2.5 billion in assistance to the country, including over $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.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.