Investment climate

Strategic investment policy priorities

Tajikistan, as an equal member of the world community, seeks to implement economic reforms and greater integration into the world economy. In order to improve the investment climate, several new Laws of the Republic of Tajikistan were adopted, among which it should be noted such as “Law on Investments”, “Law on Free Economic Zones”, “Law on public-private partnership ”, the resolution on the accession of the Republic of Tajikistan to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards and a number of other regulatory legal acts aimed at protecting the rights and interests of foreign and domestic investors. The country’s most important achievement was the country’s membership in the WTO since 2013 of the year.

The results of the reforms of the Government of the country are also recognized by the world community, and the Republic of Tajikistan was included in the list of top reformers three times in the Doing Business report of the World Bank in 2010, 2011 and 2015. Also as a result of the implementation of significant reforms to simplify doing business in the World Bank’s Doing Business report, which assesses government regulation of business activity in the world, by 2020 the position of the Republic of Tajikistan has increased by 20 points and our The republic took 106th place and entered the top ten leading reformers in the world.

Moreover, for the effective functioning of the market economy and sustainable development of the country, a number of strategic documents have been developed and adopted that determines the priority directions in the activities of the government of Tajikistan. Documents include: The National Development Strategy of Tajikistan (NDS) for 2030, the Medium-Term Development Program of the Republic of Tajikistan (MTDP) for 2016-2020 and the State Investment Program (PIP) for 2016-2020. Within the framework of these documents, the Government of the Republic identifies a number of priority sectors of the economy aimed at improving the living standards of the country’s population on the basis of ensuring sustainable economic development.

Thus, investor contributions to new priority projects developed within the framework of these strategies have a number of advantages for investors. The Government of the Republic continues institutional reforms to improve the business environment and investment climate by:

• Strengthening the legal framework;
• Development of systems for the execution of contracts and corporate governance;
• Securing property rights;
• Elimination of unnecessary administrative barriers;
• Increasing investment potential and reducing investment risks..

In the Khatlon region in recent years, as well as in the country as a whole, it is actively carried out the process of improving the business and investment climate, are carried out institutional reforms to form the infrastructure of a market economy. Favorable conditions for doing business have been created in the region, all administrative procedures.

June 14, 2019 in the city of Kulob, Khatlon region Local executive body state authorities of Khatlon region and the city of Kulob in cooperation with the central the authorities of the country organized the International Investment Forum.

A wide range of local and foreign entrepreneurs and investors, representatives of responsible state bodies, Tajik Diasporas including from the Russian Federation, specialists and experts, as well as local and foreign mass media took part in the Forum.

The Forum was a unique platform for establishing multilateral ties with business and scientific circles of various countries, familiarizing with the potential of Tajikistan and the Khatlon region, discussing promising cooperation, attracting investment and exchanging experience.

Free economic zones (FEZ)

As of December 30, 2020, 36 subjects were registered in the free economic zones of Khatlon region, of which 11 subjects of the Pyanj FEZ and 25 subjects of the Dangara FEZ. In general, over this period, more than 1.90 billion somoni have been invested in these zones

SEZ “Dangara” 

Territory – 521.3 ha

Registered – 25 subjects

The cost of the land plot is $ 1 / 1 sq. m per year.

In January-December 2020, the enterprises of the FEZ “Dangara” produced products in the amount of 24.3 million somoni.

The most successful enterprise operating on the territory of the FEZ “Dangara” is a Chinese company, the priority direction of development, which is the extraction and processing of oil. The design capacity of the enterprise per year is 1.2 million tons.

In the future, due to the increase in capacity, it is planned to produce and process oil up to 100 thousand tons. Another large enterprise, which is part of the subjects of the FEZ “Dangara”, is an enterprise for the manufacture of metal structures with a capacity of up to 1 million tons of metal.

In the near future, the company plans to grow to a large plant, where more than 400 people will be provided with permanent work.

FEZ “Panj”

Territory – 401.6 ha

Registered – 12 subjects

In January-December 2020, Panj FEZ attracted investments in the amount of 2.1 million somoni, and with the start of operations, the volume of attracted investments is 12.2 million somoni. FEZ “Panj” is divided into 2 sectors: 1st sector of the FEZ – with a territory of 186 hectares consists of logistics, trade, import, export, finance and innovation; 2nd sector – with a territory of 215.6 hectares, belongs to the industrial sector.

Near the FEZ “Panj” there are large reserves of raw materials, such as quartz sand, raw cotton, as well as agricultural products, which can be obtained from four large areas located within a radius of 50 km from the FEZ.

FEZ “Panj” has a well-established infrastructure: customs control, water supply, electricity, etc.

In the FEZ “Panch” the Chinese company “Office of Attracting Investments” successfully operates, which has created an enterprise in the construction and trade direction:

–    production of flat glass and other glass products,

–    creation of a logistics center,

–    construction of an enterprise for processing agricultural products.

In 2019, the Kulyab Free Economic Zone was created in the city of Kulyab, Khatlon region. The total territory of the zone is 309 hectares. At present, the local executive body of state power of the Khatlon region and the city of Kulyab is actively working to attract investment, including direct foreign investment in this area.

In 2019, the Kulyab Free Economic Zone was created in the city of Kulyab, Khatlon region. The total territory of the zone is 309 hectares. At present, the local executive body of state power of the Khatlon region and the city of Kulyab is actively working to attract investment, including direct foreign investment in this area.

State support for business and investors

As a platform for public-private dialogue in order to improve the business environment and investment climate in the region, there is an advisory council under the Chairman of the executive body of state power of the region, where all issues arising in the process of business of entrepreneurs are resolved. The Advisory Council includes the Investment Committee, the Economic Development and Trade Directorate and other departments that contribute to the development of entrepreneurship in the region.

An important condition for the development of entrepreneurship in the Khatlon region is not only the availability of an appropriate national strategy and support program, but also the readiness of state regional organizations to cooperate with the business community. The leadership of the Khatlon region approved a program for the development of trade in the Khatlon region for 2016-2018, within the framework of which a subprogram was developed for the development of trade, service and infrastructure sectors in cities and districts of the region, which provides for the construction of shopping centers and shops, pharmacies, cafes and restaurants, as well as dairy farms, flour and butter mills. In addition, as of 01.01.2021, 35 state investment projects are operating in the region, including the provision of irrigation water to the lands of the Dangara Valley, the construction of the DushanbeBokhtar highway, the development of animal husbandry and pastures, the improvement of medical services, and the construction of schools.

Legal guarantees for investors

The legislation of the Republic of Tajikistan guarantees the following rights for investors:                                                                                                                   

• The legislation of the Republic of Tajikistan guarantees the following rights for investors:
• The right to carry out any kind of activity not prohibited legislation of the Republic of Tajikistan.
• The right to open banking institutions in banks on the territory of the Republic of Tajikistan accounts in national and (or) foreign currency.
• The right to free distribution of profits from their activities.
• The right to transfer abroad income and wages in foreign currency legally obtained as a result of investment and production activities.
• The right to reimbursement of investments due to him and received in connection with their income in the event of termination of investment activities, through no fault of investor.
• The right to free conversion of national currency into another freely convertible currency, as well as the purchase of foreign currency for payment operations outside the Republic of Tajikistan.
• The right to unimpeded (no quotas, no licensing and no application to other measures of non-tariff regulation of foreign trade activity) removal of property that was originally imported into the territory of the Republic Tajikistan. • The right to use natural resources, land, including its lease in the manner prescribed by the legislation of the Republic of Tajikistan.
• Ownership of products, income and profits from the concession activities, inviolability of the term of the concession agreementю.

In case of amendments and additions to the investment legislation of the Republic Tajikistan, investors during five years from the date of official publication of such changes or additions have the right to choose the most favorable conditions for them. This regime does not apply to changes and additions made to the Constitution of the Republic of Tajikistan and to the legislation of the Republic of Tajikistan related to issues of national security, health care, environmental protection, morality and ethics.

The Civil Code of the Republic of Tajikistan, regulates relations arising between entrepreneurs, individuals and legal entities, and is aimed at preventing violations or restrictions of rights. An activity of the Advisory Council under the President of the country to improve investment climate is evidence of the republic’s efforts in pursuing a consistent policy to improve the conditions for doing business in the country. The same goals are pursued by the activities of the Advisory Council under the Chairman of the Khatlon region.

The law of the Republic of Tajikistan guarantees: equality of rights of domestic and foreign investors, legal protection of investors and investment activities, inadmissibility of state bodies interference in investment activities.