Economy of Tajikistan

Over the years of independence, with the consistent implementation of strategic goals, the republic has reached a new stage of development. The implementation of the National Development Strategy of the Republic of Tajikistan until 2030 will ensure the status of an industrial-agrarian country. The Government of the country considers the contribution of the private sector in the National Development Strategy for the period up to 2030 as a key factor in sustainable economic development, which in turn is the main source of ensuring national goals and creating on this basis the conditions for a dignity life of the people.

To achieve the national goals, the Medium-term Development Program of the Republic of Tajikistan for 2021-2025, the State Export Development Program of the Republic of Tajikistan for 2021-2025, the State Investment Program for 2021-2025 and the Medium-term Digital Economy Program for 2021-2025 are being implemented. In order to further acceleration, the development of the economy, along with various measures taken by the Government, five free economic zones have been established in the country. Subjects of free economic zones were given a number of economic privileges. They are exempt from taxes (except income and social tax) and customs duties. All administrative barriers to the development of free economic zones were removed.

Tajikistan’s economy is rapidly recovering from the effects of the COVID-19 pandemic. According to statistics, at the end of the first half of 2021 the country’s GDP growth was 8.7% compared to 3.5% for the same period in 2020, i.e. an excess was 5.2 percentage points. The economic policy of the republic for the near future is aimed at achieving four important strategic goals – ensuring energy independence – efficient use of electricity, break in the communication deadlock – turning the country into a transit country, food security – access to a quality food and industrialization acceleration of the country and expansion of productive employment.

Achievement of these goals and implementation of set outed priorities allowed to ensure the average annual economic growth of the country for the last 20 years at the rate of 7.5%, to increase state budget revenues from TJS 252 million in 2000 to TJS 27.6 billion in 2021.

As a result of ensuring macroeconomic stability, the total income of the population increased from TJS 1 billion in 2000 to TJS 65.4 billion in 2020, and the poverty rate decreased from 83% in 1999 to 26.3% in 2019. Thus, over the past 20 years, the poverty rate has decreased by more than three times.

The gross domestic product per capita during this period increased from 289 somoni to 9 thousand somoni and increased more than 30 times.

Over the past seven years, the total revenue side of the state budget has increased from 14.6 billion somoni in 2014 to 23.6 billion somoni in 2020. During the period of independence, the country conducted an independent monetary policy, a banking system was formed, and in 2000 the national currency was put into circulation.

As a result of the implementation of measures and reforms in the banking sector, various types of credit and financial institutions have been established, which now provide banking services to the population and various sectors of the national economy.

In the past ten years (2011-2020), loans worth more than 100 billion somoni were allocated for the development of the national economy, including 45.8 billion somoni – for industrial entrepreneurship.

In the past twenty years, since 2001, more than 150 billion somoni foreign investments have been attracted into various socio-economic spheres of the country, of which 59 billion somoni are direct investments. During mentioned period, with the attraction of foreign investments totaling more than 91 billion somoni more than one thousand state investment projects were realized, especially in social spheres, including education and healthcare as well as in energy, transport, water supply and other sectors.

Currently, 74 state investment projects are being implemented for a total of 40.5 billion somoni.

Work is continuing on the forming a favorable investment climate and improving the business environment. The state policy in the field of economy is concentrated on at comprehensive support of private sector initiatives and entrepreneurship, and significant work has been done in this direction to remove artificial administrative barriers and ensure transparency of legal norms for business entities.

In this regard, the laws of the Republic of Tajikistan “On state protection and support of entrepreneurship” in a new edition, “On investment agreement”, “On public-private partnership”, “On licensing system”, “On moratorium on inspection of activities of small and medium enterprises” were adopted. The Concept of State Policy on Attraction and Protection of Investments of the Republic of Tajikistan, the Program of State Support for Entrepreneurship for 2012-2020, a number of sectoral strategies and programs, amendments to a number of normative legal acts were adopted, which are aimed at attracting investment and development of entrepreneurial activity.

And also the Law of the Republic of Tajikistan “On state registration of legal entities and individual entrepreneurs” was adopted, the “Single Window” system for state registration of entrepreneurial activity was introduced, the number of registration bodies was reduced from 4 to 1 unit, and the registration period was reduced from 49 to 3-5 days.

As part of the simplification of the permit system, the number of permits was reduced to 56 and the electronic submission of 30% of permits was established.

A trade portal has been created, which provides domestic and foreign entrepreneurs with the opportunity to receive information on procedures and documentation for the export and import of goods, reducing the time and costs of entrepreneurs.

According to international estimates, over the past ten years, Tajikistan has been included four times in the top ten reforming countries of the world in the direction of the development of entrepreneurship and investment.


The Government of Tajikistan in its economic policy attaches a great attention to the development of the industrial sector as one of the lead factors of the national economy ensuring permanent employment and we recognize it as an important source of public budget revenues, solution to social issues, and therefore, we declared the accelerated industrialization as our fourth strategic goal.

Currently, industrial production has increased sevenfold compared to 1997, and the garment industry, metallurgy, food processing, mining and processing of minerals, chemical industry and production of building materials have achieved significant results.

In 2020, the volume of industrial production in the country reached 30820.8 million somoni, which is 9.7% or 3277 million somoni more than in 2019. In 2020, 300 industrial enterprises and workshops with more than 6,500 jobs were built and we have overcome the country’s dependence on imported products, including coal, building materials, especially cement and many types of food products, and laid foundation for the export of domestic industrial products.

While in 1992 the production of cement made 446,000 tons, in 2020 it reached 4.2 million tons, which is almost 10 times more.

Coal production increased more than 9 times – from 214,000 tons in 1992 to 2 million tons in 2020.

It should be noted that over the past five years, the country has produced import-substituting products for a total of 44 billion somoni.


During the period of independence, the Government of the country has been taking all the necessary measures to protect the food security of the country through reforms in the agricultural sector and implementation of dozens of sector development programs, including administrative and legal restructuring of farms, development of fallow lands for agricultural activities, widespread introduction of re-sowing, expansion of orchards and vineyards, and promotion of farmers’ access to financial resources. Thus, we have achieved high rates of development of the agricultural sector.

The volume of agricultural production in 2020 increased by 8.8% compared to the previous year, including the volume of crop production increased by 8.1%, and livestock production – by 10.7%.

During the period of independence of the country, we created more than 112,000ha of new orchards and vineyards, and their area reached more than 200,000ha, which is 2.2 times more than it was in 1991. Over the years of independence, we have widely introduced a very useful experience of secondary sowing, and every year we have organized secondary sowing of agricultural crops on an area of 200,000ha. At present, in addition to secondary sowing, agricultural crops are sown on more than 900,000ha of irrigated land annually in the country.

During 30 years of independence, the production of grain has increased 5.3 times, potatoes – 10 times, vegetables and fruits – 7 times, and the supply of consumer market with environment friendly domestic products has significantly improved.


It is known that Tajikistan is a mountainous country and 93% of the territory is occupied by mountains, with impressive geological riches in minerals, such as ferrous, non-ferrous, precious and rare metals, semi-precious and decorative stones, coal, etc. The confirmed volume in total is hundreds of billions of somoni.

Currently more than 600 mines and 800 deposits with more than 60 types of mineral and non-mineral raw materials have been discovered and studied in Tajikistan.

The volume of industrial production of the mining industry increased from TJS 1.8 billion in 2014 to TJS 7.7 billion in 2020.

In 2000, the mining industry accounted for only 1.0% of industrial production, in 2020 – by 25.1%.

To date, 27% of these reserves are produced and refined.


During the period of independence of the country 34 state investment projects for a total of TJS 57.2 billion to develop the country’s energy sector.

Currently, 17 other state investment projects amounting TJS 16.4 billion are under implementation in this area.

Many hydropower facilities were built and commissioned, including the Sangtuda-1 and Sangtuda-2 hydropower plants, two units of the Rogun hydropower plant, the Dushanbe thermal power plant, hundreds of small hydropower plants, a 500 kV South-North transmission line, and others high-voltage transmission lines and powerful electrical substations.

The renovation of the Norak, Sarband and Kairokkum hydropower plants for a total amount of about TJS 12bn (more than one billion dollars) are also ongoing, which will enable to multiply their capacity and life.

Since independence, the country’s energy potential has gradually increased from 4044 megawatts in 1991 to 6131 megawatts in 2020.

After the full commissioning of the Rogun HPP, the energy capacity of Tajikistan will increase by more than 9,781 megawatts, or 60%, and we will achieve complete energy security.

Tajikistan is also one of the leaders in improving the environmental situation in the region and the world in terms of greenhouse gas emissions, because we generate 96% of electricity in our country with the use of renewable energy sources.