Business Environment and Regulatory Reforms In Tajikistan

Tajikistan has taken steps in recent years to improve its business environment through reforms around registration, taxation, licensing etc. Key facilitative measures include - a one-stop shop for business registration bringing down time taken to just 3 days; online filing and payment systems for taxes and customs duties; eliminating minimum capital requirements for business start-ups.

However— challenges remain around financing, skill development, corruption and red tape. Access to credit is still limited— with high interest rates around 28% deterring SME investments. Skills shortages, especially for technical and vocational skills, impacts hiring and productivity. And while procedures have eased substantially, complicated regulations still pose issues for doing business.

Going forward the government aims to improve Tajikistan's ranking in the World Bank's Ease of Doing Business index to 80 by 2025, from the current 106. This involves further modernizing commercial laws around insolvency, contract enforcement and arbitration. Improving connectivity and logistics infrastructure is also a priority.

To further streamline regulations, a new Tax Code and revised Customs Code were introduced in 2021. This simplified tax compliance, eliminated duties on various imports and rationalized customs procedures.

Reforming commercial laws around contract enforcement through commercial courts modernization is another priority reform area to boost investor confidence in the local dispute resolution system.

Developing public-private partnerships (PPPs) is also being encouraged to attract private capital for infrastructure and social service delivery projects. If successfully implemented, ongoing reforms can significantly cut operating costs and risks for businesses over the long term.Infrastructure Development and Connectivity Projects in Tajikistan

Tajikistan's mountainous terrain poses challenges for domestic and regional connectivity. However, massive investments are planned in— roads, railways, airports and power transmission networks to enhance linkages.

Dushanbe-Qurghonteppa railway line, estimated at $3.9 billion, to connect Tajikistan's major cities as well as provide freight access to the Fergana Valley region and broader Central Asia.

Upgrade and modernization of Dushanbe, Kulob and Qurghonteppa domestic airports along with construction of a new $200 million airport terminal in Dushanbe. CASA-1000 project transmitting excess summer electricity from Tajikistan & Kyrgyzstan to Afghanistan & Pakistan with investments of around $1.17 billion funded by development banks.

Various highway construction and modernization projects like the $225 million Isfara-Shakhristan highway linking major population centers domestically and regionally. Improving connectivity will not only link Tajikistan to major markets but also enable greater tourism inflows to drive economic growth.

In addition, the government plans to upgrade and expand Tajikistan's road network by 3,500km with investments of $2.2 billion under the National Transport Corridor Program. This will link all regions and border crossing points through a network of national and regional highways.

Modernizing border crossing infrastructure at key entry points like- Khujand and Kulyab through installation of scanning and automation equipment worth $30 million will also enhance transit potential. Completing these ambitious infrastructure projects remains vital to realize Tajikistan's economic growth and integration objectives.