Tajikistan to Attract More Than $15 Billion over Next Three Years
Saturday 3 December 2011
DUSHANBE (CA-News) – The Tajik government has approved an employment program, which provides for creating about 250,000 new jobs in the country in the next two years, and more than 27,200 unemployed people will be involved crafts.
Tajikistan is planning to attract more than US $15 billion in the next three years to implement over 100 projects, CA-News reported citing the president’s press service. According to the source, a cabinet meeting resulted in adopting a government investment program. In addition, the cabinet council approved an employment program for the population. 250,000 jobs are expected to be created in the country within two years. More than one billion US dollars was allocated for this purpose.
After independence, Tajikistan’s government emphasized the promotion of foreign investment particularly to develop labour-intensive manufacturing industries. With ongoing civil unrest, however, few investments have flowed into the country and most foreign aid except that of Russia has been stalled. Difficulties also exist with currency convertibility, a prohibition on land ownership, and repatriation of profits and capital. In 1996 the government amended the foreign investments law to offer a two year exemption from taxes on profits to enterprises with investments of $100,000-500,000, and a four year exemption to enterprises with investments totalling $2-5 million.
Since 1999 a new tax code development together with international experts has been in force in the Republic of Tajikistan. Enforcement of the TAX Code tax allowed to significantly simplified tax system by reducing number of taxes and simplifying the mechanisms of tax collection, shortening administrative expenses associated with state revenue collection.
Since 1996 total volume of Foreign direct investment (FDI) reached approximately $277 million. In 2002 foreign direct investments in economy of Tajikistan reached $36 million, which exceeds 2001 level by 3.8 times. Significant growth of FDI followed economy economic stabilization in the country and was directed in equity of Tajik companies.
There are more than 300 enterprises with foreign capital operating in Tajikistan. Primary targetsof FDI were gold mining (30%), commercial activity (19%), food (17%), construction (16%) and chemical industry (8%). In 2002 major sources of FDI included the United Kingdom (40.2%), Russia (23.4%), the USA (7.8%), Cyprus (7.6%), Pakistan (6.9%), Canada (6.8%). Apart from Pakistan, among IDB member-countries major FDI sources also included Turkey (US$ 848.300), Iran (US$385,500) and UAE (US$200.000).
A lack of investment is an acute problem. It is the cause of low productivity and production volumes in manufacturing as well as of a weak infrastructure. The government started active development of national infrastructure. Several large road and bridge reconstruction and rehabilitation projects with the view to upgrade them internationally acceptable standards. Electricity distribution facilities are also undergoes a serious overhaul, as well as system of air navigation and telecommunications. New infrastructure facilities are also built with the use of own reserves and with assistance provided by bilateral donors.