The State Committee on
Investment and State
Property Managementof the Republic of
Tajikistan

INVESTMENTOPPORTUNITIESIN TAJIKISTAN

2Contents:
Tajikistan is waiting for you!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
History of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
General information about Tajikistan. . . . . . . . . . . . . . . . . 7
Political structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Foreign policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Water resources-the inner wealth of Tajikistan. . . . 12
Economic development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Tajikistan in the world rantings. . . . . . . . . . . . . . . . . . . . . . . . . . 16
Investment activity in Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . 17

Agriculture. . . . . . . . . . . . . . . . . . . . . .
-fruits and vegetables. . . . . . .
- cotton. . . . . . . . . . . . . . . . . . . . . . . . . . . .
- textile. . . . . . . . . . . . . . . . . . . . . . . . . . . .
-animal breeding. . . . . . . . . . . . . .
-beekeeping. . . . . . . . . . . . . . . . . . . . .
- fish farming. . . . . . . . . . . . . . . . . . . . .
Mining industry. . . . . . . . . . . . . . .
-aluminum. . . . . . . . . . . . . . . . . . . . . . .

29
30
31
32
33
34
35
36
37

- Investment legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
-Doing Businessin Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
-Tax and customs preferences andprivileges for Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Free economic zones. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Priority sectors for investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Hydropower industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

-gold and silver. . . . . . . . . . . . . . . . .
- coal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-other resources. . . . . . . . . . . . . . .
Transport. . . . . . . . . . . . . . . . . . . . . . . .
Financial sector. . . . . . . . . . . . . . .
Tourism. . . . . . . . . . . . . . . . . . . . . . . . . . .

38
39
40
42
44
46

3

«For the purpose of improving the investment environment, attracting investments and supportof the private sector, and strengthening the guarantees and obligations of investors, we need,taking into account the observance of international standards, to implement appropriate
measures to improve the legislative system and international mechanisms of investment
guarantees and agreements. In this process, in order to attract investments and develop industrial
entrepreneurship, the priority should be given to the implementation of investment projects
using modern technologies and to export-oriented and environmentally friendly production».
Founder of peace and national unity - Leader of the nation,
President of the Republic of Tajikistan, Mr. EMOMALI RAHMON

4

DEAR
LADIES ANDGENTLEMEN
WE SINCERELY THANK YOU FOR YOUR INTEREST AND
DESIRE FOR MUTUALLY BENEFICIAL COOPERATION.

The Republic of Tajikistan is a steadily
developing, competitive country thatprovides a decent level of life for the
population and living standards, providing
equal opportunities for the realizationof human potential based on equality,
justice and respect for human dignity.
Since obtaining its independence, theRepublic of Tajikistan has been pursuingan active policy aimed at ensuring
economic growth and integration
into the world economy. The politicaland investment climate, the adopted
legislative and regulatory acts contributeto the solution of many priority tasks
related to the growth and modernizationof the economy, investment attraction

and development of the private sector.
The Republic of Tajikistan, as a fullfledged member of the world community,
is actively continuing the process ofinstitutionalandsocio-economic
reforms aimed at strengthening thelegal framework, developing contract
performance and corporate governancesystems, enforcement of property rights,
eliminating unnecessary administrative
barriers, and increasing investment
potential and reducing investment risks.
As a result of implemented reforms during
the years of independence, the incomeof the population has increased almost
30 times, savings have increased morethan 90 times, and the poverty level has

5decreased from 83% to 30%, and in recent
years, the country’s economic growth hasreached an average of 7%. During thelast 16 years, the dynamics of investment
attraction has increased more than 110
times and hundreds of large and small
enterprises were built and one hundred
thousands of jobs were created.
As a result of admission of significant
progress of reforms, Republic of Tajikistan
joined the ranks of the countries of the
top reformers in 2010, 2011, 2015 and2020, in the World Bank’s Doing Business
report.
These achievements have become
possible due to the political will of thecountry’s management, the fruitful workof government structures, the active
participation of development partners
and the private sector.
This collection provides more detailed
information on investment Opportunities
and priority sectors, the country’s
business environment, and alsopreferences and privileges provided by
the country’s legislation.
We invite you to open new markets, tomutually beneficial cooperation and theimplementation of new business ideas in
the Republic of Tajikistan.
We wish you success in your creative
endeavors in the implementation of
investment projects.
The State Committee on Investment
and State Property Management of the
Republic of Tajikistan

6

HISTORY OF
TAJIKISTAN
Tajikistan - is a country with ancienthistory, culture and traditions. In 8741005 the Tajik nation was formed in the
Samanid state with a common language,territory and culture. From the roots ofthis state, the civilization and statehoodof subsequent generations of Tajiks weregrown.
The culture of the Tajiks is uniqueand requires the multiplication andpreservation of national values.
Tajiks made a significant contribution
to the spiritual treasury of civilization;
they gave to the world outstanding andremarkable scientists, philosophers,
writers, poets and architects, whose works
became an integral part of the scientificand cultural baggage accumulated by theworld civilization. Examples of this are thelyrics of the founderof Persian-Tajik literature Abuabdullo
Rudaki,the immortal national-epic poem
‘Shahname’ of Abulkosim Firdausi, which
absorbed the legendary history of the
Persians and Tajiks, and the ‘Canonof Medical Science’ of Abuali Ibn Sina
(Avicenna), a treatise that served as themain guide to medical schools in Europe,
for many centuries.
Al-Khorazmi, Al-Forob and Aburaihon
Beruni scholars, such stars of the firstmagnitude on the horizon of world
poetry, like Khayyam, Rumi, Saadi, Hafiz,
Jami, masters of art work Borbad, Mani,
Behzod were known far beyond ancient
Sughd, Khurasan and Movarounnahr - themain territory of modern Central Asia.

7

GENERALINFORMATIONABOUT THE
REPUBLIC OFTAJIKISTAN
Today the Republic of Tajikistan is a
mountainous country with absolute
altitudes from 300 to 7495 meters. 93%of the country’s territory are mountain
ranges related to the Pamir, Gissar-Alaiand Tien-Shan mountain systems. Theseridges are divided by rich and fertile landsof Fergana, Zerafshan, Vakhsh and Gissar
valleys. The complexity of the terrain andthe large amplitude of the altitudes ofmountain systems cause an exceptional
diversity of flora and fauna.
Location: south-east of Central Asia. It
borders in the east with China, in the west
and north - with Uzbekistan, in the north- with Kyrgyzstan, in the south - with
Afghanistan.
Territory: 142.6 thousand square
kilometers
Climate: distinctly continental - inJanuary the temperature is from -20° C
to 0° C; and in June from 0° C to + 30° C,
depending on the altitude.
Population: 10 million people
Capital: Dushanbe city
Administrative
division:
GornoBadakhshan Autonomous Oblast, Sughd
Region, Khatlon Region, Regions ofRepublican Subordination.
Language: Tajik (state), Russian (thelanguage of interethnic communication)
Currency: Tajik Somoni (TJS)8

POLITICAL STRUCTURE

The Republic of Tajikistan is a sovereign, democratic, law-based,secular, and unitary state.
According to the Constitution, the form of the government of the
Republic of Tajikistan is presidential.
State power in the republic is based on the principle of separation
into legislative, executive and judicial authorities.

9

PRESIDENT OF THE
REPUBLIC OF TAJIKISTAN
The President of the Republic of Tajikistan
is the executive head of the state authority
and of the Government.
The President is elected by citizens of
Tajikistan based on universal, equaland direct suffrage by secret ballot fora period of 7 years. Every citizen of thecountryattheageof 30 who speaks thestate language and resides in Tajikistan
for at least the last 10 years can be
nominated as a candidate for the post of
the President of the Republic.

JUDICIAL AUTHORITY
The judicial authority in the Republicof Tajikistan is carried out by theConstitutional Court, the Supreme
Court, the Superior Economic Court, theMilitary Court, and by the courts of theGorno-Badakhshan Autonomous Oblast,by the regional, city and district courts.
The judicial authority is independent, it
protects individual rights and freedoms,
interests of the state, organizations,institutions, legality and justice. Judges
are independent in their activities, they
only obey the Constitution and the Law.

LEGISLATIVE AUTHORITY
The highest representative and legislative
body of the Republic of Tajikistan is the
Majlisi Oli, the parliament of the Republicof Tajikistan. TheMajlisiOliconsistsoftwo
chambers-the Majlisi Milli (upper chamber) and the
Majlisi Namoyandagon (lower chamber)and is elected for a term of five years.
Members of the Parliament of the Majlisi
Namoyandagon are elected based onuniversal, equal and direct suffrage bysecret ballot.

EXECUTIVE AUTHORITY
The Governme
nt of the Re
public of
Tajikistan is a body of executive stateauthority. The Governme
nt of theRepublic of Tajikistan carries out its acti
vitiesonthebasisoftheConstitution of the
Republic of Tajikistan, the Constitutional
Law of the Republic of Tajikistan On the
Government of the Republic of Tajikistan
and other regulatory acts. The Chairmanof the Government of the Republic of
Tajikistan is the President.

10

FOREIGN
POLICY
ImplementingapeacefulpolicyTajikistan respects the sovereignty andindependence of other states of the world
and determines its foreign policy on thebasis of international norms.
The basis of the foreign policy of the
Republic of Tajikistan is the principle ofOpen Doors. By implementation of thisprinciple Tajikistan develops friendly
relations based on mutualrespect,equality and mutually beneficial
cooperation with all countries of theworld.
Due to this policy, our country has
strengthened its position in theinternational arena. Today, 151 countries
officially recognized Tajikistan, and the
diplomatic relations are established with126 of them. The Republic of Tajikistan
is an active member of more than 50
international and regional organizations
such as the UN, the World Bank, theInternational Monetary Fund, theAsian Development Bank, the Islamic
Development Bank, the OSCE, theOrganization of Islamic Cooperation, theSCO, the WTO and others.

11

12

WATER RESOURCES- THE INNER WEALTHOF TAJIKISTANThe Republic of Tajikistan is rich in water resources. Annually
115 billion cubic meters of water is formed within the country,
mainly within the Amudarya and Syrdarya river systems. About
70% of all drinking water resources of Central Asia are locatedin Tajikistan.

13

The
re are more than 1300 lakes in
Tajikistan, in which 46.3 km3 of water areconcentrated, including more than 20 km3
of fresh water. The water surface of thelakes occupies 1005 km2 , which is about
1% of the country’s territory. Amongthem, the most high-mountainous lakes
are Chapdara (4529 m), Karakul (3914 m),
Zorkul (4126 m), Turumtaykul (4213 m) andothers. Kulikalon Lakes, Hazor-Chashma
and Iskanderkul have glacial origin.
The Sarez Lake is the youngest one, which
is located in the valley of the Murgab River.
It was formed in February 1911 as a resultof the Usoy earthquake. The volume ofaccumulated water in this lake is about
17.5 billion cubic meters.

Tajikistan is the country where the largest
rivers of Central Asia originate. The total
length of rivers with length of more than
10 km exceeds 28500 km. The rivers of
Tajikistan belong to the basins of the
Amudarya (including the Zeravshan
River), the Syr Darya, Markans and thedrainless basins of Pamir.
There are more than thousand glacierswith a length of more than 1.5 kilometers
and a total volume of about 550 km³ ofwater located in the republic. Glaciersin Tajikistan cover an area of more than
9000 km², which is almost 6% of the total
areaoftherepublic. Thelargest of them
are the Fedchenko, Grumm-Grzhimailo,
Garmo and Zeravshansky glaciers.
To date, Tajikistan uses only 20% of theavailable water potential.

14

ECONOMIC DEVELOPMENT

Duringtheyearsofindependenceofthe
Republicof Tajikistan, the provision ofsustainable e
conomic growth of thecountry was defined by the Government
as the main source of increasing thewelfare of the population. In this regard,
the process of implementing institutional,
economic and social reforms was
initiated.
To increase the e
ffective
ness of theresults of reforms, Tajikistan was the firstof 82 countries to develop and implement
the National Development Strategy forthe period until 2015.
Effective implementation of the measuresprovided for in the National Strategy
contributed
totheachievementof
significant success in the following
strategic objectives:-Assurance of energy independence;-Overcomingofthecountry’s
communication isolation;-Assurance of food security.

15
The dynamics of the most important
macroeconomic indicators in recent years
shows a significant rate of development of
the main sectors of the economy. Over theyears of implementation of the National
Strategy, a stable average annual GDP
growth rate at a level of 7% was achieved,
the poverty level and welfare of thecountry’s population were decreased byfifty percent. Although growth in 2020 fell
to 4.5% due to the pandemic, renewed
growth to over 7% p.a. is expected in thenext few years.
Further growth of the national economy
was facilitated by the support of theprivate sector and the development ofentrepreneurship. And it should be notedthat in recent years the private sector has
been actively involved in improving therate of development of the main sectorsof the economy. Due to the complex
process of reforms over the past ten
years, the number of business entities has
increased by 85% and currently amounts
to more than 300 thousand.
Taking into account the effective resultsof the previous Strategy, the Governmentof the country in 2016 adopted a new
National Development Strategy for theperiod until 2030.
In this Strategy, a special priority forachieving the set goals is given to theprivate sector and attraction of private
investments, and this is the evidenceof the importance of involving theprivate sector in ensuring sustainable
development of the national economy in
the long term period.

Basic indicators		

2015

2016

2017

2018

2019

2020

2021

GDP growth (%)		

106,0

106,9

107,1

107,3

107,5

104,5

109,2

Inflation rate (%)		

5,8

6,1

6,7

5,4

8,0

9,4

8,0

Foreign trade turnover

4325,5 3929,9 3972,9 4224,3 4523,7 4557,8 6359,1(in millions USD)

16

TAJIKISTAN IN
INTERNATIONAL
RATINGS
Reforms and effective economic policyof the Governme
nt of the Re
publicof Tajikistan were recognized in theinternational arena. Tajikistan has joined
the ranks of the top-ten reformer countries
in the World Bank Doing Business Reportin 2010, 2011, 2015, 2020.

In 2017, the British Magazine Wanderlust
Travel published a rating of countries inwhich it is easiest to obtain touristic visa.
Tajikistan ranks fourth among countries
with a simplified visa procedure. In
2016 an online visa issuing system wasintroduced.

The most important achievement of thereforms is that in the period from 2000
to 2020, the poverty rate decreased from
83% to 26,5%. On the rate of poverty
reduction over the past 20 years, Tajikistan
is among the top 10 best performing
countries in the world.

In 2014 according to the Globe Spotsinternational rating our country wasawarded the second place in the list of themost attractive countries in the sphere of
tourism.

In 2015, Tajikistan ranked fourth in therating of the American public opinion
institute of Gallup in the category of thesafest countries in the world.

During the period from 2011 to 2015,
Tajikistan took the 6th place in the worldin terms of electricity consumption fromrenewable sources.

17

INVESTMENTACTIVITYIN TAJIKISTAN

Due to the measures taken by theGovernment of Tajikistan, the dynamics
of the inflow of investments, including
foreign direct investment, into theeconomy of the country has positive
trends. Tajikistan has implemented
more than 70 public investment projects
totaling more than 3 billion USD. The
Republic of Tajikistan today is a country
with significant investment advantages,
such as:Strategic geographical location
Political and economic stability
All-round support of private
business and entrepreneurship
Abundance of natural resources
Rapidly developing Infrastructure

1100.4

842.6
718.3
644.6

607
428.4

2016

2017

2018

2019

2020

11%

2021

FDI INFLOWS BY SECTORS IN 2021

6%
3%
2%
5%
64%
9%

DYNAMICS OF FOREIGN INVESTMENTS
INFLOW IN 2016-2021 (MILLION USD)MINING
TRANSPORTINDUSTRYFINANCESCONSTRUCTIONSTOURISMOTHER18INVESTMENT LEGISLATION
For the purpose of forming a favorable
investment and business environment, as
well as attraction of foreign investments
over the period of independence, morethan 100 normative and legal acts,
regulating this sphere have been adopted,
including the laws:
On State Support of Entrepreneurship,
On Investments,
On Foreign Economic Activity,
On Financial Rent (leasing),
On Investment Agreements,
On Concessions,
On Free Economic Zones,
On Public-Private Partnership and otherregulatory acts.
These laws are aimed at legal protectionof investments, providing investors withfiscal and non-fiscal incentives, ensuring
their participation in the privatization
process and infrastructure development.
Legislation of the Republic of Tajikistan
guarantees equal rights to both domestic
and foreign investors, and protects
their property from nationalization andrequisition.
Investors have open access to the real
sectors of the economy, and also have theright to carry out exploration, processing
and exploitation of the natural resourcesof the Republic of Tajikistan.
Moreover, investors are guaranteed theright to freely transfer abroad income
and salaries in foreign currency, obtained
legally from investment and production
activities.

In case if the subsequent legislation of
the Republic of Tajikistan will lead to anincrease of the aggregate tax burden to theinvestor’s activity, then within ten years
they are given a guarantee of applying thelegislation that was in effect at the time ofregistration of the enterprise.
When carrying out reinvesting, theinvestors fully make use of legal
protection, guarantees and privileges
established by the legislation of the
Republic of Tajikistan.
The investment agreement may specify
a special regime of implementationof the investment project and provide
the investor with certain privileges,
not stipulated by the legislation of the
Republic of Tajikistan. The Governmentof the Republic of Tajikistan guarantees
compliance with and implementationof the provisions of the inve
stmentagreement by all government bodies
responsible for implementing theinvestment agreement.
In December 2007, in order to improve
the investment environment and private
sector development, the Consultative
Council on Improving the Investment
Environment was established under the
President of the Republic of Tajikistan,which is a platform for an open dialogue
between the government bodies and theprivate sector.

19

DOING BUSINESS IN TAJIKISTAN
Due to the timely support of theGovernment of Tajikistan and the ongoingreforms, amount of small and mediumsized business entities is constantly
growing and today the portion of theprivate se ctor in the GDP structure is about
70%, and almost 80% of tax revenues
in the state budget fall on this sector. In
addition, 67% of the economically active
population are involved in the private
sector.
Due to the reforms, the list of taxes was
reduced to 10 types. In addition, thesystem of ‘Single Window’ operates in
the country, for the registration of legal
entities and individual entrepreneurs,with the introduction of which the amountof registration authorities was reduced toone, the time of registration was reduced
to 3 days.
Amount of permit documents for
conducting business activity was reduced
from 605 to 74. There is an electronic

Harmonizedinvestment
legislation

Free income
repatriation

system for issuing permit documents.
A Single Window was created to obtaina permit for the construction. Becauseof the above-mentioned reforms andinitiatives, the Republic of Tajikistan
improved its positions in the World Bank’s
rating of Doing Business by 60 positions
during the past 5 years.
In 2020, Doing Business acknowledges
the 10 economies that improved themost on the ease of doing business after
implementing regulatory reforms. In
Doing Business 2020, the 10 top improvers
are Saudi Arabia, Jordan, Togo, Bahrain,
Tajikistan, Pakistan, Kuwait, China,
India, and Nigeria. These economies
implemented a total of 59 regulatory
reforms in 2018/19 — accounting forone-fifth of all the reforms re-corded
worldwide. Their efforts focused primarilyon the areas of starting a business, dealing
with construction permits, and trading
across borders.

Unlimited accessto the country's
resources

Equal playing groundfor local and foreign
investors

Guarantees
protecting
investments fromamendments in theinvestment related
legislation for a termof 10 years

20

TAX AND CUSTOMS PREFERENCES
AND PRIVILEGES FOR INVESTORSIn the Republic of Tajikistan, about 100
investment incentives are provided forthe creation of a favorable investment
environment, as well as attracting
investments in the country by legislativeand regulatory acts. Investment
incentives are divided into fiscal (suchas tax rebates) and non-fiscal incentives(such as grants, soft credits, measures toimprove the business environment).

Depending on the amount of theinvestment, companies are exempt fromprofit tax up to a period of 5 years.
In addition to privileges by law, specificpreferences can be agreed upon bysigning an investment agreement withthe government of the republic.

PROFIT TAX EXEMPTION

2

3

with an investment of up to$500 thousand.

with an investment from$500 thousand to $2 million.

FOR

YEARS

FOR

YEARS

21

PRIVILEGES AND PREFERENCES IN BUSINESS

4

5

with an investment from
$2 million to $5 million.

with an investment,
exceeding $5 million.

FOR

YEARS

FOR

YEARS

22

AGRICULTURE
Import of agricultural equipment is
exempted from VAT and customs duties.
Activities related to the delivery or
export of cotton fiber, cotton yarn andraw cotton are exempted from VAT.
Import of goods for own needs by newly
created enterprises engaged in the fullcycle of processing cotton-fiber into
final products is exempted from suchtaxes as:-value-added tax at zero rate; -frompayment of income tax;
-from payment of real estate tax up to 12
years.
Value added tax is established at a rateof 10 percent for the import of wheat,
the delivery of wheat and the final resultof its processing (flour or bran).
The poultry products and enterprises
engaged in the production of combined
fodder for birds and animals andoperating with the involvement offoreign capital in the amount of not lessthan 16 million US dollars are exempted
for up to 12 years from payment of:-value added tax;
-profit tax;
-road tax;
-real estate tax;
-customs duties for the import of goods
for the needs of enterprises.

MEDICINE
Importofmedicines,
medical,pharmaceutical equipment and medical
instruments is exempted from VAT andcustoms duties.

INDUSTRY
Import of goods directly for own needs
by newly created enterprises involvedin the industrial processing of leather,wool, raw silk and other agricultural
raw materials into final products is
exempted for a period of up to 5 years
from payment of:-customs duties;-value added tax;
-profit tax.
The enterprises engaged in the full cycleof processing cotton fiber into the final
product are exempted for up to 12 years
from payment of:-profit tax;
-real estate tax;
-customs duties for the import of goods
for own needs of the enterprise.
Delivery, including for export, of thefollowing goods is exempted from value
added tax:
-precious metals and stones;-jewelry from precious metals andstones;-primary aluminum;-metal concentrates;-commercial ore;-ferrous and non-ferrous scrap metals;-other metals produced in the Republicof Tajikistan.

23

POWER ENERGY
For the construction of a hydroelectricpower plant, the investor and thegeneralcontractor are fully or partially exemptedfrom payment of:-value added tax;
-road tax;
-profit tax (tax payable on a simplified
system);-vehicle tax;
-real estate tax;
-social tax in respect of foreign citizens
directly engaged in the construction of
HPP.
Import of goods for the constructionof hydroelectric power plants, which
are especially important objects, is
exempted from customs duties.
When constructing a hydroelectricpower plant, the investor and thegeneral contractor are fully or partiallyexempted from paying the state duty
for the registration of prospectusesof non-state securities carried out in
connection with the construction of ahydroelectric power plant.

TOURISM
Newly established enterprises operatingin the field of tourism are exemptedfrom payment of profit tax for a periodof 5 years.
Import of equipment and building
materials for tourist facilities is exemptedfrom the payment of value added tax
and customs duties.

PROCESSING EQUIPMENT
Import of production and manufacturing
equipment and components for thecreation of a full production cycle are
exempted from payment of: customs
duty; -value added tax.
The zero rate of import customs duty
for the import of goods originatingfrom the member states of the Eurasian
Economic Community and Ukraine.
The lowered rate of the import customs
duty at a rate of fifty percent of theapproved rates is valid for the importof goods originating from the least
developed countries.

SECURITIES MARKETThe activities of securities market
entities in Tajikistan are exempt frompayment of profit tax and value added
tax for a period of 5 years.
Investors receiving income fromcirculation of securities on the stock
exchange of Tajikistan are exemptedfrom incometax and taxon dividends fora period of 5 years.

24

FREE ECONOMIC ZONESOne of the effective incentives for theattraction of investments is the creationand operation of free economic zones.
For the purpose of provision of favorable
conditions for attracting foreign
investments and support of the private
sector, four free economic zones werecreated in Tajikistan:Dangara FEZ, with a total area of 521
hectares (Khatlon region);
Sugd FEZ, with a total area of 320
hectares (Sughd region);

Panj FEZ, with a total area of 401
hectares (Khatlon region);
Ishkoshim FEZ, with a total area of 200
hectares (GBAO);
Kulob FEZ, with a total area of 309
hectares (Khatlon region);
Currently more than 70 entities operate
in freeeconomic zones, which are
exempted from all types of taxation,
except for income and social taxes. During
the activity of free economic zones,
160 million dollars of investments wereattracted to the economy of Tajikistan.

Preferences
In accordance with the legislation of the republic, the import of production andconstruction equipment into the territory of free economic zones is carried out without
levying customs duties and taxes.
Taxes and customs duties are not levied and economic prohibitions and restrictions are
not applied, when exporting goods from the territory of the free economic zone outside
the Republic of Tajikistan.
Import of domestic and foreign goods are exempted from excise duty.
Rent
The annual rent for one square meter of the land plot is 1 USD.

25

PRIORITY SECTORS FORINVESTMENT

Prospective sectors of Tajikistan’s economy for attracting investments:
Hydropowerindustry
Agricultureandprocessingofagriculturalproducts
Miningandchemicalindustry
Lightindustry
Transport
Financialsector
Tourism

26

HYDROPOWER
INDUSTRY

The Republic of Tajikistan has
inexhaustible reserves of hydroelectric
resources, occupying the 8th place in theworld in terms of their specific reserves(per capita and area unit). Tajikistan has
the potential to produce 527 billion kW/hr.
of electricity per year, but today only 6%of this potential is being used.
Over the years of independence, theGovernment of the Republic of Tajikistan
has been implementing raft of measureson the way to achie ving one of the strategic
goals, which is energy independence. So,for example, the following facilities werebuilt and put into operation:

27-the Sangtuda-1 hydroelectric power
plant with a capacity of 670 MW;-the Sangtuda-2 hydroelectric power
station with a capacity of 220 MW;-283 small hydroelectric power plants
with a capacity of 30 thousand kW;-Dushanbe-2 CHP plant, with a capacityof 400 MW;-North-South PTL - 500 kW.
In November 2018, the first power
turbine of Rogun HPP was launched,marking another important milestone
for the energy sector of Tajikistan. The
Rogun hydropower plant (HPP), being
embedded into broader reforms anda sound macro-fiscal framework, will
create greater prosperity for the people of
Tajikistan. The final project capacity willbe 3 600 MW, thus being the biggest HPP
in the region.

In addition, projects on modernization
and reconstruction of existing facilities
in the electric power industry have been
continued.
At present, by the financial support of
the Asian Development Bank and theEuropean Bank for Reconstruction andDevelopment, a project feasibility study
has been conducted on the rehabilitationand modernization projects for the HeadHPP (240 MW) and Kairakkum HPP (126MW). The Government of the Republicof Tajikistan signed an agreement with
the Asian Development Bank to allocate
a grant of 136 million USD for themodernization of the Head HPP. Projects
for the modernization of hydroelectric
power plants also envisage an increase in
the capacity of hydroelectric generators
up to 10%, which will ensure an increasein their installed capacity.

28

THE HIGH VOLTAGE PTLCASA – 1000 PROJECT
The opening ceremony of the CASA-1000 (Central Asia South
Asia Electricity Transmission and Trade Project) regional
project for the construction of a transnational PTL washeld in Tajikistan on May 12th, 2016. It was attended by thegovernment executives of the four participating countries ofthe project - Tajikistan, Afghanistan, Pakistan and Kyrgyzstan.
The CASA-1000 project for construction of high voltage powertransmission line, by which the export of electricity will betransported from Tajikistan and Kyrgyzstan to Afghanistan
and Pakistan, is planned to be realized within two years. The
project costs exceed 1 billion USD.
The realization of the project will connect the electrical
networks of Central and South Asia, and facilitate the creationof a common electricity market in the region.

29
29

AGRICULTURE
One of the main sectors in the economyof the Republic of Tajikistan is agriculture,
due to which curre
ntly the country
provides about 23.3% of GDP, more than
70% of jobs, 25% of exports and 35% of
tax revenues to the state budget.
Despite the fact that the climaticconditions of the republic are ideallysuited for the cultivation of virtually all
varieties of grain crops, the mountainous
terrain yet still slightly narrows down
the possibilities of the population inagricultural production.
The total area suitable for agriculturalactivities is 7.2 million hectares, however

most of it used as pastureland for livestock.
The cultivated land for agricultural crops
is total of 675 thousand hectares, of which
only 470 thousand hectares are irrigated.
Another 180 thousand hectares of theseareas are cultivated under gardens andvineyards.
Every year, more than 1.4 million tons ofgrain, 900 thousand tons of potatoes,
1.6 million tons of vegetables,
595 thousand tons of melons and
300 thousand tons of fruits are producedon irrigated and rainfed lands of sunny
Tajikistan. It should be noted that in 2017the volume of export of Tajik vegetables
and fruits exceeded 200 thousand tons.

FRUIT PROCESSING
Tajik fruits are highly valued in many
countries of the world not only becauseof their ecological compatibility, but also
excellent taste qualities. Unique climaticconditions of the republic allow to growhere apricots, peaches, grapes, apples,
pears, persimmons, pomegranate andcitrus fruits. Vegetables and fruits occupy
the second place in the republic, after
cotton, by volume of export.

Today, there are more and moreenterprises working on fruit processingin Tajikistan. One of the important factors
in this case is that dried fruits are easilytransported, stored and sold at higher
prices. Over the past few years, thisindustry in Tajikistan has demonstrated
stable growth rates, mainly due to exportsof manufactured products.

31
31

COTTON
Cotton up to the present day continues
to form the basis of Tajik export. That
is why this agricultural crop occupies
1/3 of the entire ploughed area of therepublic. Due to suitable agro-ecologicalconditions, in which 10 months of sunnydays a year play an important role, anddue to abundant water resources, one
can annually produce in the country up to
400 thousand tons of high-quality cotton.

32

TEXTILE INDUSTRY
The volume of foreign investment in
the textile industry of the Republic of
Tajikistan has significantly increased inrecent years. A remarkable example ofthis is the construction of the first stageof the Textile Complex of Juntai Dangara
Sin Silu Textiles CJSC in Dangara city. The
capacity of this enterprise allows annually
to process 52000 tons of cotton fiberand producing up to 150 million square
meters of cotton fabric. The enterprises
for the production of cotton-fiber OlimTextiles and Khujand-Invest-Cotton werealso no less successful.

It should be noted that currently cotton
fiber, fabric and cotton yarn, clothes
and clothing with additional textile
improveme
nts are produce
d in therepublic. Currently, 107 cotton ginning
factories operates on the country’s
territory, which produce more than 120
thousand tons of high-quality cotton
fiber, of which only 12 000 tons per year
is processed by textile enterprises of
Tajikistan. Even though the capacity ofspinning factories allows processing morethan 70 000 tons of cotton fiber per year.

33

ANIMAL BREEDING
Animal breeding is one of the component
parts of the agrarian se
ctor of theeconomy of the Republic of Tajikistan,which, from the point of view of the total
production of agricultural products inthe country, ranks second after the crop
production.
In the mountain regions of the republic,
animal breeding is the main source ofincome for the population. Comfortable
natural and climatic conditions, soil

quality and abundance of various wild
plants in the republic form favourable
conditions for raising various breeds offarm animals. That is why the number oflivestock inventory and poultry stock in
Tajikistan annually increases on averageby 8-10%. The portion of farm units
among the population in the productionof all livestock products, except for eggs
and poultry meat, has been steadily
increasing in recent years, exceeding 8590%.

34

BEEKEEPINGIn Tajikistan, beekeeping is part of thenational culture and has its own ancienthistory. Even the famous scientist Abuali
ibn Sina (Avicenna), in his work The Canonof Medicine told about the benefits ofhoney and bee venom for human health.
The abundance of nectariferous plants
in the republic allows to breed from 500
to 600 thousand honey-bee colonies,
which could bring from 10 to 12 thousand
tons of honey per year, as well as a large

number of other related products such as
wax, propolis, pollen, royal jelly and bee
venom.
In the conditions of Tajikistan, a huge bee
forage for the development of beekeeping
is available. To date, honey-bearing
farmland is about 5 million hectares,
which allows raising the production ofhoney to more than 4 thousand tons per
year.

35

FISH FARMING
Taking into consideration the geographic
features of the republic and the large
number of mountain rivers and lakes,
fishing in Tajikistan is considered one of
the most profitable areas of activity.

To date, the demand of the republic’s
population in fish is 14 thousand tons.
Taking into account the available volumesof water resources, the country plans toincrease the production of fish products
to 20 thousand tons. It should be notedthat as of January 1st, 2021, the volume
of fish production in the Republic of
Tajikistan was 3570 tons.

36

MINING INDUSTRY

Today, on the territory of the Republicof Tajikistan, about 40 kinds of minerals
are mined. About 100 deposits are being
exploited. More than 600 deposits ofpolychime, rareand precious metals
have been identified and explored, andare partially prepared for industrial
development.

The country’s soil is rich in zinc, lead,bismuth, molybdenum, tungsten, copper,
gold, silver, antimony, mercury, fluorspar,tin, uranium, iron, manganese, table salt,
magnesium and many other mineral
resources with a high export potential.

37
37

ALUMINUM
The Tajik Aluminum Company (TALCO)
is the main aluminum producer in the
Republic of Tajikistan, an estimatedcapacity of which amounts to
517 000 tons of primary aluminum per
year. Undoubtedly, the fall in world prices
for aluminum has adversely affected the
Tajikistan production, as a result of whichin 2016 only 156 tons of primary aluminum
was drawn.

Anotherachievement
of
TalcoManagement Ltd is the launch of anenterprise for the production of electricalcable in 2011. Currently, 10000 tons ofelectrical cables are produced per year.

Since 2009, the Tajik Aluminum Company
has also been working on the productionof 40 types of cable products within theframework of the TALCO Cable project,which meets all international quality
standards and has been exported to CIS
and European countries.

The high quality of the products and its
undeniable competitiveness were marked
out with international awards. In 2008
the Tajik aluminum Company became
the winner of the international award
The Best Enterprises of Europe, and the
products produced by this company weremarked with the European quality label.

The year of 2015 for TALCO was no lesssignificant, when the company opened
in Tajikistan the first cable plant based on
the use of domestic copper.

38

GOLD, SILVER AND
PRECIOUS STONESThe volume of the gold rese
rve ofthe Republic of Tajikistan amounts to
400 tons. Annually, more than 10 tonsof gold is extracted in the country, butcurrently the prospect of a possible
increase in production up to 20 tons per
year is being considered.
Tajikistan is famous for one of theworld’s largest silver deposits. Bolshoi
Konimansur (Big Konimasur) is the prideof the northern region of the republic,
where more than 60 000 tons of silver areconcentrated.

Anotherwealthoftherepublicarenumer
ousdepositsofpreciousstones. Only in2020 the total amount from the exportof precious, semiprecious stones andmetals amounted to about 690 million US
dollars, and the amount from the exportof non-precious metals and their articles
made therefrom amounted to 187 million
US dollars.

39
39

COAL
The bowels of Tajikistan abound withalmost all types of coal, from brown
coal of Shurab to unique ultra-pureanthracites of Nazar-Aylok. Currently coalreserves of the country are estimated at
4,3 billion tons.
At the moment, 40 coal deposits havebeen identified and partially studied in
the republic. The extraction is carriedout by 18 enterprises, the largest ofwhich is the Shakhta Fon Yagnob UE,with the potential of 600 thousand tons
per year. Due to effective state support
and attraction of investments into thedomestic coal industry, the level ofproductivity of enterprises in the republic
has significantly increased in recent
years. Therefore, in 2020, coal productionin the country amounted more than
2 million tons. This is 100 times higher thanit was mined in 2000. Huge coal reserves
in Tajikistan are a good opportunity toincrease the volume of its extraction andprocessing for the purpose of improving
the production of fuel, chemical andtechnological materials on an industrial
scale. In this case, the rational use ofcoal can promote the development of
the chemical industry and non-ferrous
metallurgy in the country.

40

OTHER MINERALRESOURCES
Republic of Tajikistan is among the richest
countries in antimony reserves, ranking
second in Asia, after China. In the bowelsof the deposit Skalnoe, 50% of all thereserves of antimony are hidden at thearea of the CIS.

Central Tajikistan is famous for its wolfram
deposit Maihura, which is unique also
because only 95 kilometers away fromthe city of Dushanbe it is possible to build
a mining enterprise with a capacity of up
to 150 thousand tons of ore per year.

On the territory of Sughd region there are
more than 214 richest deposits of natural
resources. The value of the hidden volume
of metal ores in these bowels according
to preliminary estimates is estimated at
10 billion USD.

It is noteworthy that oil and gas reserves
were discovered in the days of existenceof the Soviet Union. Currently, more than
7.9 million tons of oil and 5.6 billion cubic
meters of gas are hidden in the bowels of
Tajikistan.

26 deposits of lead and zinc in this regionof the republic, 3 deposits of copper andbismuth, 1 molybdenum and wolfram, 3iron, 15 gold, 7 silver, 1 stannum, 11 hardcoal, 11 oil and gas, 5 fluorspar deposits,
and 1 rock salt deposit fall on this area ofthe republic.

41
Khatlon region of Tajikistan is aperspective region for the constructionof an enterprise for the extraction of ores
containing strontium. The total reservesof the Chaltash, Daudyr and Chilkutan
deposits located here, allow extracting
more than 180 thousand tons of ore
annually.
Besides that, several gas fields are
currently being developed in the
territories of the Baljuvan and Jaloliddini
Rumi districts of the Khatlon region.
Kabodiyon and Shaartuz districts are alsorich in large reserves of raw materials forthe production of cement in this area,
amounting to 200 million tons.
In the south of the Republic of Tajikistan,hugereservesofrocksaltareconcentrated.
Tens of billions of tons are hidden in thebowels of the richest deposits of KhodjaMumin, Khoja-Sartez, Tanobchi andSamanchi.

Gorno-Badakhshan is as much as rich inminerals, where the only deposit of boric
raw materials is located there in Tajikistan
named Ak-arkharskoe. The Earth’s depthsof Pamir store in themselves the reservesof gold, silver, copper, wolfram, mica andgemstones.
The mining industry in the Republic of Ta
jikistanisoneofthemostpromising areas
in terms of attracting foreign investment.
Joint ventures such as Zarafshon, Anzob,
Adrasman, Pakrut, Aprelevka, operating in
the country for the extraction of preciousand semiprecious metals, have alreadybecome successful examples of fruitfulcooperation with foreign companies.

42

TRANSPORTThe development of the transportindustry is of great importance for theRepublic of Tajikistan, and the withdrawal
from the communication impasse isundoubtedly one of the strategic targetsof the state.
Tajikistan has no direct access tothe seaports. That is why roads andrailway system of Tajikistan are of
crucial significance for the economic
development of the country. More than
90% of the passenger turnover and about
70% of cargo transportation falls on theroad transport.
The Republic of Tajikistan is a memberof 10 international programs in the fieldof transport, including ESCAP, UNO,TRACECA, SCO, SPECA, and ECO.
The most successful of these projects are
the following:- Construction of the Dushanbe-Dangara
highway together with EximBank of the
PRC for the amount of 256.27 million US
dollars;- Construction of the DushanbeUzbekistan Border highway in cooperation
with the Asian Development Bank in theamount of 131.2 million US dollars;- Construction of the DushanbeKyrgyzstan Border highway in cooperation
with the Asian Development Bank in theamount of 76.5 million USD;
- Construction of the Kulyab-KalaiKhumb highway, the Shurabad-Shohonarea, together with the Saudi Fund forDevelopment, the OPEC Fund, the Islamic
Development Bank, the Kuwait Fund forDevelopment and the Abu Dhabi Fund fora total of 92.9 million USD.
- Construction of the Dushanbe-KhujandChanak highway and the Shahristan
tunnel, together with the China Road andBridge Corporation, totaling to 310 million
US dollars.

43

The length of railways in Tajikistan
is 935 km. Tajikistan is a party to theagreement of the Trans-Asian Railway(TAR), which connects the railway systemwith 28 countries in Asia and Europe. Thisagreement entered into force on June
11th, 2009. It is aimed at easing the cargoand passenger transportation within Asiaand between Asia and Europe.
The Governme
nt of the Re
public of
Tajikistan, together with the Governments
of Turkmenistan and Afghanistan,
implements a project for the constructionoftheTurkmenistan-AfghanistanTajikistan railway. It is assumed that thisrailway will create favorable conditions forincreasing the rate of social and economic
development of the region.

Air transportation is carried out by both
local and international airlines. Tajikistan
has
4 international airports in the cities of
Dushanbe, Khujand, Bokhtar and Kulyab.
During the period of state independence,agreements on aviation communications
were signed with 21 states of the far
and near abroad. In addition, domestic
companies «Tajik Air» and «Somon Air»provide services to citizens on 33 airroutes to 9 countries of the far and nearabroad.
On September 3, 2014, a modern
passenger terminal with a capacity of
500 passengers per hour was put into
service in Dushanbe International Airport,
which was constructed out of the funds of
Tajikistan and France.

44

FINANCIAL SECTOR

Today financial system of the Republicof Tajikistan is characterized bysuch properties as transparency,
accountability and efficiency, as due toobtaining independence, the country’s
legislative framework began to be formedin accordance with the requirements
of international standards. There are

69 credit financial institutions that arefunctioning in the Republic of Tajikistan
as of December 31, 2020, including
15 traditional banks, 1 Islamic bank,18 microcredit deposit organizations,
3 microcredit organizations and 26
microcredit funds.

45
There is a noticeable development in thesphere of banking services in the republic.
According to official statistics, the numberof users of payment cards over the past
years has significantly increased andtoday there are about 3 million cards. The
number of electronic terminals for cash
withdrawals has also increased. If in 2006,
only 73 terminals were operating in the
country, then their number had alreadyreached more than 800 units.
In order to reduce the level of risks of bankcredits, to increase the transparency ofthe credit system, to increase the accessof the population to credit resources
and increase the level of responsibility ofborrowers, a Credit Information Bureau
was established in Tajikistan. This served
as a positive impetus for the developmentof the financial infrastructure of thecountry.
It is important to stress out that to datethe banking system of the Republic of
Tajikistan is in the process of reforming.

The National Bank of RT makes every
effort to increase its financial stability.
International rating companies «Standart
and Poors» and «Moody’s InvestrosService» rated Tajikistan’s independent
credit rating to «B3, Outlook Stable».
Currently, Tajikistan is actively developing
the securities and bonds market, which isclearly demonstrated by the creation of
the Central Asian Stock Exchange, which
is currently successfully operating. The
legislative framework of the republic caterto the needs of our times, based on which,the relevant amendments were made to
the Law of the Republic of Tajikistan On
Securities and Stock Markets.
In 2017, due to the issue of government
securities (Eurobonds) of Tajikistan andtheir conversion in the world market,
the economy of Tajikistan attracted 500
million USD of foreign investment frommajor international and multinational
companies.

46

TOURISM
Tajikistan is a territory of the highest
mountain peaks, giant glaciers, rapid
rivers and unique in its beauty lakes,
unique vegetation and rare animals. It is
the mountain landscape that determines
the originality of the unique nature of
Tajikistan, the richness of its forms, honedby the diversity of climatic zones. In just anhour and a half flight one can find himself
from the hot heat of the Vakhsh Valley in
the Arctic colds of the permanent snowsof Pamir. That is why the Government of
the Republic of Tajikistan defined tourism
as one of the priority directions of thecountry’s economic policy.

The rich cultural and historical heritageof the Tajik people, the advantageous
geographical location, the identityof the local culture, the diversity ofnatural landscapes and unique naturalmonuments suggest the developmentof both domestic and international
inbound tourism. Based on this, aseparate Committee for the Developmentof Tourism was created in 2017, on theinitiative of the Founder of Peace andNational Unity, the Leader of the Nation,
the President of the Republic of Tajikistan
Mr. Emomali Rahmon.

47

The tourist market of the Republic of
Tajikistan is currently represented morethan 100 tour companie s. The Gove rnme ntof the country promotes the developmentof international tourism in every way andconstantly works on simplifying the visa
regime. Currently, citizens of 81 countries
have the opportunity to obtain visa
directly upon arrival at the international
airport. In 2016, an electronic visa wasintroduced, which can be obtained on
the Internet simply from any part of theworld. From 01.01.2022 a visa-free regime
for citizens of 52 countries was introduced

65% of Tajik sanatorium resorts havebeen restored in the country, over 300
private tourist recreation zones and morethan 74 sanatoriums been constructed,
which undoubtedly forms a favourable
environment for the development ofinternational tourism, attracting foreign
investment and providing employment
for the population. The most promising
trends of tourism in Tajikistan are thefollowing:- historical and ethnographic tourism;- health resort treatment and rest;- ecological tourism;- rafting, paragliding, mountain skiing;
and a lot more.

GOVERNMENT AUTHORITIES(OFFICIAL WEBSITES)
President of the Republic of Tajikistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.president.tj
Parliament of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.parlament.tj
State Committee on Investment and State Property
Management of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.investcom.tj
State Unitary Enterprise “Tajinvest”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.tajinvest.tj
Ministry of Justice of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.minjust.tj
National Bank of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.nbt.tj
Ministry of Foreign Affairs of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.mfa.tj
National Patent and Information
Center of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.tjpat.org
State Statistics Committee of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.stat.tj
Ministry of Economic Development andTrade of the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.medt.tj
Tax Committee under the Government of the Republic of Tajikistan. . . . . . . . www.andoz.tj
Customs Service under the Governmentof the Republic of Tajikistan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.customs.tj

USEFUL LINKS:
Business Portal of Tajikistan .............................................................................................www.b2b.tj
Trade Portal of Tajikistan...........................................................................................www.tajtrade.tj
Chamber of Commerce and Industry of Tajikistan.....................................................www.tpp.tj

The State Committee on
Investment and State
Property Managementof the Republic of
Tajikistan