ADB's Work in Tajikistan

Tajikistan’s economic growth expanded by an estimated 8% in 2022 and the national poverty rate fell to 22.5%. However, as a relatively small, open, oil-importing economy, Tajikistan remains vulnerable to external shocks. The economic base needs to be broadened and diversified and the quality of growth improved. Resilient growth requires more private investment and efficient allocation of public finance by advancing structural reforms. More jobs are required, and labor productivity needs to be enhanced. Responding to climate change is critical given Tajikistan’s vulnerability to natural hazards. Regional cooperation is also important to overcome the limitations of Tajikistan’s geography.

The Asian Development Bank (ADB) has partnered with Tajikistan since 1998. Under the bank’s country partnership strategy, 2021-2025, ADB operations pursue three strategic priorities: supporting structural reforms to enhance resource allocation and mobilization, improving labor productivity through human capital development, and fostering better livelihoods through investment in a land-linked economy.

To date, ADB has committed 155 public sector loans, grants, and technical assistance totaling $2.4 billion to Tajikistan. Cumulative loan and grant disbursements to Tajikistan amount to $1.8 billion. These were financed by concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s current sovereign portfolio in Tajikistan includes 2 loans and 22 grants worth $1.06 billion.

In 2022, ADB disbursed $100 million in two grant programs to help the Government of Tajikistan strengthen social protection, ensure food security, and promote businesses. The programs will also help stabilize the banking sector, boost the nonbanking finance sector, and strengthen fiscal management.

ADB committed a $38-million grant to expand climate-resilient water supply and sanitation systems in Dushanbe. This grant supplements an ongoing project aiming to improve the quality of life, health, and urban resilience in the capital city.

ADB is also increasing support to enhance road sustainability in southern Tajikistan through an additional grant financing of $43.2 million to scale up the safety and reliability of domestic roads and enhance women’s access to social and economic activities.

Teacher and students talk in the school yard after lessons, secondary school #40, Dushanbe, Takikistan.Photo: Nozim Kalandarov/ADB

To improve Tajikistan’s resilience to climate change, ADB approved a $30-million grant to strengthen disaster risk management and reduce economic losses due to climate change and disasters caused by natural hazards. The project will help build disaster-resilient shelters, strengthen the capacity of local communities and officials, and improve response facilities in the Khatlon region through improved weather and disaster forecasting tools and an additional early warning system.

Operational challenges. ADB and the Government of Tajikistan are working closely to improve the quality at entry aspects of projects. To further ensure smoother project implementation, ADB helped build procurement and disbursement capacities of executing and implementing agencies through training, workshops, and on-the-job consultations. To mitigate the impacts of climate change and promote gender equality, relevant measures are integrated into the projects. ADB also ensures the financial sustainability of investments through rigorous due diligence assessments.

Knowledge Work

ADB’s knowledge work in Tajikistan provides analytical and capacity-building support that is aligned with the country partnership strategy’s focus. In 2022, ADB examined the energy market, food safety systems, risks from flooding and earthquakes, and small, and medium-sized enterprises in Central and West Asia, including Tajikistan. ADB has also provided knowledge support for enhancing a road asset management system and road safety measures to ensure road safety and reliability. Tajikistan’s macroeconomic landscape and economic prospects were featured in the Tajikistan chapter of the Asian Development Outlook (ADO) 2022 and the ADO 2022 Update. To highlight the benefits of vocational training, ADB published a photo essay on employment opportunities for Tajikistan’s adults and young people.

  ADB Projects in Tajikistan Project data sheets for loans, grants, TAs

Future Directions

Under the country partnership strategy 2021-2025, ADB aims to further support government-led structural reforms to attract more foreign and domestic private investors. To improve labor productivity, ADB will continue to support education and market-relevant skills development and strengthen health services and social protection. To enhance livelihoods and food security, ADB will support agricultural production and natural resources management, improve urban services in Dushanbe and secondary cities, tap Tajikistan’s tourism potential, develop roads connecting rural and urban areas with neighboring countries, and further improve energy sector efficiency. ADB will also address climate change, promote gender equality, and support regional cooperation and integration in its operations while developing its private sector operations.