The Government of Tajikistan and the Asian Development Bank have signed a $50 million grant to assist the Government of Tajikistan in improving the stability of the banking sector, developing the non-banking financial sector and strengthening fiscal management, Avesta reports.
Tajik Finance Minister Fayziddin Kakhhorzoda and ADB Resident Representative in Tajikistan Shannie Campbell signed a grant agreement in Dushanbe.
The grant is the second phase of the Financial Sector Improvement and Fiscal Management Program. This program is helping the government pursue important structural reforms that will promote sustainable and inclusive private sector-led economic growth.
Key reforms include improving the stability of the banking sector and public confidence in the financial system by strengthening the Deposit Insurance Fund for Individuals, expanding the capacity of the National Bank of Tajikistan to monitor and manage financial stability, and strengthening banking supervision. The reforms also include the improvement of the insurance industry and the development of the domestic securities market and Islamic finance.
To improve the business and investment environment, the program supported the introduction of new e-services for taxpayers and climate change taxation, and raised the status of women in the financial sector and women's entrepreneurship.
To strengthen fiscal management, the program helped the Ministry of Finance improve the budget process and transparency, strengthen oversight and accountability of state-owned enterprises, and implement a medium-term debt management strategy.
Since Tajikistan joined ADB in 1998, the bank has provided more than $2.5 billion in aid to the country, including more than $1.9 billion in grants. The ADB Country Partnership Strategy for Tajikistan 2021–2025 focuses on three strategic priorities: structural reforms to improve resource allocation and mobilization, increase labor productivity through human capital development, and improve living standards through investment in the land-based economy.
CentralasianLIGHT.org
December 16, 2022