The Asian Development Bank has approved 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 with reference to ADB.
This policy-based grant is the second phase of the Financial Sector Improvement and Fiscal Management Program, ADB reports.
“Tajikistan has recovered rapidly from the pandemic, but fresh shocks from current geopolitical uncertainty have slowed the country's growth prospects and reform agenda,” said Evgeny Zhukov, ADB Director General for Central and West Asia.
This policy-based financial assistance helps the government pursue important structural reforms that will promote sustainable and inclusive private sector-led economic growth, Zhukov said.
The reforms also include the improvement of the insurance industry and the development of the domestic securities market and Islamic finance.
“In order to improve the business and investment environment, this program has supported the introduction of new e-services for taxpayers and climate change taxation, as well as increased the status of women in the financial sector and women’s entrepreneurship,” commented Yuji Miyaki, ADB Central and West Asia Governance Specialist.
“To strengthen fiscal management, the program helped the Tajik 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,” added ADB Senior Economist Muhammadi Boboev.
ADB has coordinated its assistance with other development partners to ensure that its initiatives complement those of other development actors and to ensure the sustainability of reforms. The Bank combined its policy advice with financial assistance, implementation support and capacity building.
Since Tajikistan joined ADB in 1998, the bank has provided over $2.5 billion in aid to the country, including over $1.9 billion in grants.
The 2021-2025 ADB Partnership Strategy with Tajikistan focuses on three strategic priorities: structural reforms to improve resource allocation and mobilization, increase labor productivity through human capital development, and promote improved living standards through investments in the land economy.
CentralasianLIGHT.org
December 12, 2022