Economy

Economy of Tajikistan

Economy-performs

Economic Reforms. After gaining independence, the country has been implementing economic reforms and institutional and structural changes on a regular basis, which is very important and reasonable for improvement of the banking and financial system meeting the contemporary international standards requirements.

During 20 years of independence, a number of challenges and barriers existing in the new society have been addressed, a ground for establishment of independent country was laid, large-scale construction and development activities as well as steady economic and social reforms started, achieving energy sufficiency, ensuring country’s connectivity with other countries of the world and ensuring food security were identified as strategic priorities of the Government’s policy.

Since 1997, i.e. since the achievement of peace, the country’s economy started growing. Even, in 2009, when the global economic and financial crisis reached its height, Tajikistan was able to minimize the affect of the crisis on the country’s economy and preserve positive economic growth dynamic.

The Republic of Tajikistan implements its economic relations within the international platform based on the principles of mutually beneficial partnership and cooperation. Consistent efforts of the country’s President in this aspect are aimed at boosting cooperation with development partners and the world community, which significantly increased the reputation of Tajikistan during its independence period among the international community.

By the direct initiative and support of the President of the country Emomali Rahmon the Government of Tajikistan established sustainable economic relations with high-ranking international organizations and developed countries of the world, which have been making contribution in the implementation of the country’s economic reform policy and improvement of population’s living standards.

As early as at the beginning of the 21st century, i.e. in 2000, by the initiative of the President, the Government of the Republic of Tajikistan signed the United Nations Millenium Declaration together with 191 countries of the world. To this end, the Government of Tajikistan has implemented measures within its commitments to ensure international cooperation and to achieve Millenium Development Goals.

In 2010, since the beginning of the Millenium Declaration has passed ten years and by the initiative of the United Nations International Summit on Millenium Development Goals was held to review the achievement of member states.

Emomali Rahmon, the President of the Republic of Tajikistan, in person participated in this important international event, which was held in the United Nations Headquarters in September 2010, and presented the achievements of the Republic of Tajikistan to the world community. In this international event, the country’s President called the world community for paying an utmost attention to the sustainable development issues, finding ways out of long-lasting challenges, including climate change, preservation of biodiversity and boosting cooperation in terms of water use.

With the view to establishing ground for sustainable econo­mic development in the country, by the initiative and support of the President, National Development Strategy (to 2015) and several other midterm strategies and programmes, which would make it possible to achieve the Millenium Development Goals, were developed and adopted and are under implementation at present. Tajikistan identified and included its priorities in these strategic documents and has been making efforts to achieve its strategic goals.

Effective implementation of strategic documents, rehabilitation of economy and achieving sustainable macroeconomic growth made it possible to reduce the poverty from 72.4% in 2003 to 46.7% in 2009.

The country’s President personally oversees reform process in all sectors of the country’s economy and implementation of national priorities through fruitful cooperation with development partners on a regular basis. In this regard, the President established National Development Council, which is responsible for ensuring implementation of the National Development Strategy and midterm strategies by encouraging foreign direct investments and contribution of development partners with a view to improving the population’s living standards.

Strategic documents on social and economic development such as National Development Strategy (to 2015) and the second midterm Poverty Reduction Strategy (2010-2012) are under implementation in the country. The goal and importance of adoption of these programs is to improve the population’s living standards, particularly socially vulnerable groups of people through ensuring economic development, making Tajikistan a democratic developed country, where people can benefit from all achievements of the political, economic and social development. A series of challenges were overcome in order to achieve these goals and now, Tajikistan became a country with established modern market-based economy and has laid a ground for implementation of its large-scale sustainable economic development plans.

The reforms and efforts enabled to improve the economic development trend lately, which promoted stabilization of macroeconomic indicators.

The country’s GDP has increased by 2.6 times since 1997, and its average growth has been equal to 7.1% per year. This level of economic development was achieved thanks to the consistent improvement of all sectors of the country’s economy.

From 1997 to present, the production of manufactured products increased by 2.5 times and the agricultural output by 2.8 times, the cargo shipment with the use of all types of transport by 1.7 times, passenger delivery by 4.3 times, retail trade by 3.2 times and real services to population by 7.8 times, the public budget by 75 times, GDP by 36.3 times per capita and monetary income of the population by 38 times accordingly.

During the independence period, a number of measures were implemented and more than 80 sectorial programmes were adopted with the view to ensuring national economic development, which promoted the improvement of different sectors of the national economy and population’s living standards.

Within the implementation of its Food Security Programme, Tajikistan has been implementing its national priorities based on the principle of partnership and boosting international cooperation and has been making constant efforts to improve its mutually beneficial economic relations at the regional and international levels.

In this regard, collaboration with international organizations, particularly with the UN FAO, UN WFP, World Bank Technical Assistance Programme on the food security in terms of food availability, accessibility and consumption in the country as well as on implementation of Program measures related to cooperation on resettling the exising challenges and coordination of joint programmes to ensure food security are established.

With the view of establishing the network of Trade Representatives Offices of Tajikistan in the regions favourable for production of local goods, practical measures have been implemented and at present, there are Trade Representative Offices in 23 countries of the world.

Having taken into account the importance of investment encouragement and study of the external market demands to local products and goods, the Chamber of Commerce and Industry of the country has established its representative offices in more than ten countries and individual areas of foreign countries.

In 2010, a number of measures were undertaken with a view to improving the business environment. As a result, Tajikistan has been included into the list of top ten reformers in the World Bank “Doing Business” Report for two years consequently. In 2010, the rating of Tajikistan increased by 13 points. Currently, a number of practical measures have been undertaken in order to regulate and harmonize existing laws and other legal and regulatory documents for ensuring effective and transparent business activities.

According to the Plan of measures for celebration of the 20th anniversary of the state independence of the Republic of Tajikistan, a number of important facilities, including the construction of “South-North” power transmission line with the capacity of 500kW and electric power substation of “Dushanbe” with the capacity of 500kW, construction of the tunnel of “Ozodi”, construction of highways of “Dushanbe-Chanoq”, “Kulob-Qal’ai Khumb-Kulma-Qaroqurum”, renovation of the highway of “Dusti-Panji poyon” (1st and 2nd phases) were commissioned.

In general, since the attainment of official independence, Tajikistan made a lot of economic achievements, some of which are as follows:

– the country’s transition to the market-based economy, establishment of different types of property, including private property;

– restoration of commercial relations with other countries, membership to high-ranking and authoritative international and regional organizations;

– construction of railways and highways.

During the independence period, with a view to reducing the distance in the highways of Dushanbe-Khujand and Dushanbe-Norak-Kulob tunnels were constructed and commissioned. Other tunnels are also under construction. It is expected to construct a highway connecting three Persian-speaking countries of Tajikistan, Afghanistan and Iran;

– construction of hydropower plants with a view to ensuring the country’s energy sufficiency, including the contruction and commissioning of HPP “Sangtuda-1” and continuation of construction activities in HPP “Sangtuda-2”, “Roghun” and other small and big power plants. In total, 235 small HPPs with the capacity from 5 to 2500kW were constructed and commissioned in Tajikistan after the attainment of official independence.

– with a view to ensuring food security in the country, significant number of measures have been implemented and sectorial programmes, which will make it possible to increase the production of agricultural and manufactured products and to improve the living standards of population, have been adopted. It should be pointed out that significant amounts are allocated from the public budget every year for implementation of these programmes.

– establishment of small and large industrial and agricultural enterprises, schools, cultural and leasure facilities, cultural centers, apartment houses, medical and recreation facilities and so forth.

Finance, Budget, Taxes and Customs. With a view to improving planning and effective utilization of financial resources, strengthening supervision of public budget revenues and expenditures as well as public debt management, Central Treasury Office and Department for External Debt Management was established within the Ministry of Finance of the Republic of Tajikistan in 1996.

Since 2000, within the strategic documents adopted by the Government of the Republic of Tajikistan, strategies on public finance management, securities market, public debt management and programmes on new mechanisms of sectorial financing (education, healthcare, social welfare, agriculture, transport and communications), serious reforms of the financial policy of the country have started, which has still been under way.

Starting from this year, the budget will be developed and implemented according to the new budget classification of revenues and expenditures, which will identify the budget structure, based on economic and executing standards and bring them in line with international standards.

The period of 2000-2008 was the beginning of achievements and new financial reforms in the financial, tax and budget policy.

With a view to enhancing financial and economic policy of the country, a number of vitally important laws, including Laws “On Public Finance”, “On Public Finance Supervision”, Tax and Customs Codes, Laws “On Treasury”, “On Accounting”, “On Auditing”, “On Public Borrowings and Loans Guaranteed by the State”, “On Securities”, “On Public Insurance”, “On Finance Management and International Supervision of the Public Sector”, “On Internal Audit in the Public Sector” were adopted. In general, more than 20 laws and legal and regulatory documents were developed and adopted only in the financial policy sector, the implementation of which will ensure and regulate the sustainable and unified financial system of the country.

As Emomali Rahmon, President of the country, pointed out in one of his statements, “Rational pursuance of financial policy and its stability in all periods is the key factor for sustainability of any state”.

Therefore, international standards are applied in the financial policy of Tajikistan to ensure the sustainable economic and social development of the country.

The system of tax agencies in all provinces and towns and districts of the country was established and national system of tax legislation, including the procedure of tax calculation, taxation of newly established private business and types of liabilities for violation of tax legislation was identified within a short period.

Despite the achievements, the taxation system was still not adapted to the market-based economy in that period. There were 24 types of national taxes, 11 types of national payments and 12 types of local taxes and payments, which used to be collected in accordance with different laws.

With a view to enhancing the tax supervision sector, Tax Committee under the Government of the Republic of Tajikistan was established by the Decree of the President of the Republic of Tajikistan of May 4, 1995 to replace Chief Directorate of Tax.

The independent system of tax agencies of Tajikistan was established mainly during the stabilization of political and economic situation in the country, sustainable development of economy and private sector as well as adoption of the first Tax Code of the Republic of Tajikistan.

All of the major administrative provisions, specific types of taxes and other mandatory payments collected in Tajikistan, were for the first time included into one law and the Taxpayer Identification Number was introduced for the first time and the number of tax and other mandatory payments was reduced.

The tax for property of enterprises and tax for immovable (real) property of individual entities was replaced by one type of local tax – immovable property tax in the new edition of the Tax Code. The taxation of the agriculture sector was simplified by introduction of a single tax for agricultural product producers and the local tax for public passenger transport holding and occasional income tax were annuled.

Introduction of official registration of legal entities through a simplified system, alongside with other measures implemented for support of business made it possible for Tajikistan to be included into the list of top ten reformers in 2009 and to improve the image of Tajikistan in the international arena.

Adoption of the Law of the Republic of Tajikistan “On moratorium for inspection of small and medium enterprises in the Republic of Tajikistan” of March 26, 2009 by the initiative of Emomali Rahmon, President of the Republic of Tajikistan, inclusion of amendments to the Tax Code of the Republic of Tajikistan on decrease of the VAT ratio from 20 down to 18% and profit tax ratio for the majoriry of sectors from 25 down to 15% based on the Annual Address of the President of the country to the Majlisi Oli (Parliament) of the Republic of Tajikistan, increasing up to 800 000 Tajik Somoni the minimum amount of income for taxpayers according to the simplified system, also determining the ratio of VAT for import of wheat equal to 10%, adoption of the Law of the Republic of Tajikistan “On official registration of legal entities and private entities” prove the above-mentioned statements.

One of the major indicators of efficiency of the tax agencies is the level of implementation of their plan of taxes and other mandatory payments. For instance, if in 2005 taxes and other mandatory payments amounting about 810 million Tajik Somoni were paid to the public budget, in 2010 this amount was equal to about 3 billion Tajik Somoni, which is more by about four times.

With a view to more enhancing the taxation system, new Tax and Customs Codes were developed and adopted. The new codes include the most important issues of tax policy and tax administration, necessary for the establishment of an integrated tax collection system, to make the taxes simple and understandable and to eliminate inefficient taxes.

Moreover, with a view to encouraging the local and foreign businesses for the import of production of equipment and technology and processing technology for establishment or replenishment of the statutory capital of enterprises and renovation of the existing production equipment, the import of agricultural machinery, medical equipment and supplies are exempted from the VAT and customs duty. Besides, newly established commodity manufacturing enterprises are exempted from income tax for a certain period based on the amount of their investments.

Poverty Reduction Strategy is one of the important docu­ments adopted by the Government of the Republic of Tajikistan. With a view to implementing this document, the public budget was transferred into a social, within which an utmost attention was paid to the development of education, healthcare, social welfare, support of small and medium enterprise, transport, energy and food security sectors.

Since 2006, for the first time the midterm public budget of the Republic of Tajikistan was developed for the next three years, on the basis of which financial reform of the budget and tax policy was continued and implementation of Midterm Expenditure Framework, Foreign Debt Reduction Strategy and Poverty Reduction Strategy were implemented and the expenditures for the social sectors were increased every year.

For comparison, if in 2001 the total amount of public budget expenditures based on all financial resources accounted for 314.0 million Tajik Somoni, in 2005 and 2011 this indicator accounted for more than 1.2 billion and more than 8.5 billion Tajik Somoni accordingly, which is 27 times more compared to 2001.

If in 2001, 126.0 million Tajik Somoni or 40% of the public budget was allocated for social sectors, so in 2011 this indicator accounted for more than four billion Tajik Somoni or 50% of the public budget, which is more by about 33 times. Thus, funding for the education increased by 28 times, for healthcare by 27 times, social welfare by 33 times, culture by 30 times and funding other sectors of the economy also increased accordingly.

From 2001 to present, the salary of the staff of government-funded agencies, pension, scholarships and different benefit payments increased by ten times in average.

Since 2007, while the public budget has been of social nature, it has also become development budget, i.e., real sectors of economy such as industry, construction, agriculture, transport, communication, small and medium enterprise and capital investment have also been funded and at present more than 25 percent of the total amount of the public budget is allocated for these sectors.

In 1992 – 1995, the public budget almost did not have any value, the inflation used to be comprised of more than four digits. In that period, the salary of teachers and doctors accounted for 3-5 Tajik Somoni and civil servants’ accounted 15-17 Tajik Somoni, which in addition was not paid in time. Since 1995, the budget relevant regulation started and its revenue share reached 110 million Tajik Somoni in 1997 and 250 million Tajik Somoni in 2000. This year, the public budget revenue share accounted for 8.3 billion Tajik Somoni, which is 75 times more compared to 1997.

During the 20 years of independence nationally important facilities such as hydropower plants of “Pamir-1” and “Sangtuda-1”, airport of Kulob, railway of Qurghonteppa-Kulob, natural gas deposit of “Khojasartez”, renovation and construction of highways of Dushanbe-Qurghonteppa-Danghara-Kulob, Kulob-Qal’ai Khumb, Murghob-Kulma-major highway of Qaroqurum, Shkev-Zighar, Shoghun-Zighar phases I and II, Dushanbe-border of Kyrgyzstan (phases I and II)”, highway tunnels of “Istiqlol” and “Ozodi”, highvoltage electricity transmission lines of “Lolazor-Khatlon” and “South-North” were constructed and commissioned.

Renovation of the highways of Dushanbe-border of Kyrgyzstan – phase III, Dushanbe-Chanoq, Dushanbe-Kulma – phases I and II, part of Dushanbe-Danghara and hydropower plant of “Sangtuda -2”, “Roghun” and other nationally important facilities is under way.

For the time being, based on the Economic and Financial Reform Programme, reform of the public administration sector and Midterm Poverty Reduction Programme, the indicators of prospect social and economic development of Tajikistan for 2010-2015 are adopted and transition to three-year planning of budget indicators have been implemented.

After attaining official independence, Tajikistan inherited only one customs point of Panji poyon and more than 2350 km. of its administrative border with former soviet countries were identified as state border.

Having recognized the importance of the country’s economic security through customs tools, a number of legal as well as administrative and structural measures were undertaken with a view to strengthening the customs infrastructure and to equipping the customs points, which laid a reliable ground for further improvement of the customs sector.

At present, the customs system is comprised of five Customs Regional Directorates and the customs control and clearance of goods and vehicles are implemented in 22 land border points, four railway points, one river point, five air points, 17 internal points and 21 internal customs checking points.

Tajikistan has been a member of the World Customs Organization and signee of ten Intenational Conventions on customs issues since July 1, 1997.

The foreign trade turnover of Tajikistan in 2010 accounted for 3 747.0 million U.S. dollars, which is more by 2780.0 million U.S. dollars compared to 1996.

The major part of the goods are exported to China, Turkey, Russia, Iran, Afghanistan, Italy, Pakistan and Latvia and are mainly imported from Russia, Kazakhstan, China, Iran, USA, UAE, Lithuania, Turkey, Azerbaijan and Kyrgyzstan.

If the customs duties in 1998 accounted for 18.0 million Tajik Somoni, in 2010 this indicator accounted for 1 695.7 million Tajik Somoni.

The Customs agencies, since their establishment, have revealed 52 090 cases of custom violations, and opened criminal case on 975 of them. Also, in 1992-2010, the Customs agencies have revealed 997 cases of drugs trafficking and confiscated 2 455 kg. of drugs, more than 20 000 plants of cannabis and 7 692 kg. of precursors. They confiscated 511 kg. 259 grams of drugs in cooperation with other law enforcement agencies of the country.

Formation of monetary and credit policy. The banking system of Tajikistan has gradually developed in the independence period on the basis of the banking network of soviet times and the newly established private banks and now became one of the important and fast growing sectors of the economy.

In such a short period, the banking system has experienced the improvement of legislation framework, establishment of banking supervision based on the international financial and economic standards, improvement of the activity of commercial banks, rehabilitation of large banks and other transformations and made significant achievements.

By the proposal of Emomali Rahmon, President of the Republic of Tajikistan, Majlisi Oli (Parliament) of Tajikistan determined Tajik rouble as the national currency of the Republic of Tajikistan and established State Committee on introduction of the national currency in 1995. In May 10, 1995, National Bank of Tajikistan issued the national currency “Tajik rouble issued in 1994” in Tajikistan in accordance with the Resolution of the State Committee on introduction of national currency.

The accession of the Republic of Tajikistan to the International Monetary Fund played a pivotal role in the process of establishment of a unified monetary system. This high-ranking international financial institution, the main goal of which is to assist developing countries and overcoming the consequences of political and social crises, recognized Tajikistan as its full member after the arrangement of documentation on August 23, 1993.

One of the IMF’s main programmes for new members is the Enhanced Structural Adjustment Facility (ESAF), which is comprised of a range of material and financial, professional and advisory as well as technical assistance. The great experience of this Organization in macroeconomic management has played a significant role in stabilization of the economic situation in the Republic of Tajikistan.

With a view to supporting the Economic Programme of the Republic of Tajikistan to improve the living standards of population and ensure economic growth, IMF has allocated long-term loan amounting 238.5 million U.S. dollars, including 30 million U.S. dollars in 1996-1998, 143.3 million U.S. dollars in 1998-2006 and 65.3 million U.S. dollars later.

The World Bank allocated about 520 million U.S. dollars to support subsector spheres, energy, healthcare, education, agriculture, social sectors, construction, the process of privatization and poverty reduction. Different ministries and agencies developed and proposed projects in these fields, the majority of which were already implemented and some of them are to be accomplished.

The monetary reform of 1995 made it possible to start a new phase of establishment of monetary policy and the most important frames of a proper banking system. In this period, there was a need to adopt a range of legal documents specifically identifying the main goal and objectives of the Central Bank in accordance with international standards. With this regard, the Law of the Republic of Tajikistan “On the National Bank of Tajikistan” was adopted in 1996, which laid a ground for making the National Bank of Tajikistan as a modern Central Bank.

Currency regulation policy has been one of the important aspects of the monetary policy. At the first stage, with a view to establishing market-based mechanism of foreign exchange trading, which should have operated based on “supply and demand”, Interbank Currency Exchange was established in April 1995. To this end, the Law of the Republic of Tajikistan “On currency regulation and currency control” was adopted in November 4, 1995. Adoption of this law also promoted the conditions and peculiarities of the local market, which has a great need in foreign currency. National Bank of Tajikistan has gradually started the implementation of the monetary policy, its currency section and regulation of national currency exchange mechanism.

One of the historically important events during the independence period is putting into circulation new national currency of “Somoni” by the personal initiative of Emomali Rahmon, President of the Republic of Tajikistan, which promo­ted increase of economic indicators in all sectors of the economy and made it possible to overcome the economic crisis and improve financial situation, stabilize the economy, finance, budget and social and political situation in the country.

During 20 years of its activity, the counry’s banking system made significant achievements in terms of cooperation with other international financial institutions, including the Islamic Development Bank, Asian Development Bank, European Bank for Reconstruction and Development. These institutions made a great contribution for the support of SME, development of education, healthcare, transport, energy (repair and rehabilitation of transmission lines), land irrigation and other sectors within the banking system of the country.

During 20 years of its activity, the country’s banking system also established fruitful cooperation with countries of Persian Gulf and made significant achievements. For instance, it strengthened cooperation with the Saudi Fund for Development, Kuwait Fund for Arab Economic Development and Fund of Organization of Petroleum Exporting Countries, and provided loans for implementation of different projects on construction of highways, private sector financing, especially small and medium enterprises through country’s commercial banks.

With a view to promoting the development of new financial institutions in the country, as well as encouraging more existing financial institutions to lending dehkan farms, providing the poor segment of population with employment and increasing their income, there was a need for development of legislative framework for development of microfinance institutions. With a view to regulating this process, the Lower Chamber of Majlisi Oli of the Republic of Tajikistan adopted the Law of the Republic of Tajikistan “On Microfinance Institutions” on May 17, 2004.

Later, with a view to implementing this Law, the National Bank of Tajikistan has developed regulatory documents on the procedure of licensing and regulation of the activity of microfinance institutions, as a result of which the number of these institutions reached 138 by the end of 2010.

Microlending has particularly significantly developed during the last five years and increased by up to three times compared to the previous years and accounted for 36 percent of the total amount of loans issued to different sectors of the economy.

The process of strengthening and improvement of different sections and aspects of the banking system, which are aimed at ensuring sustainability of macroeconomic indicators, compliance with the current international standards, meeting the growing demand of population and economy, are still continuing.

As of the end of 2010, in total 138 microfinance and loan institutions, including 14 banks, two nonbanking loan institutions, one nonbanking financial institution, 35 microloan deposit organizations, 42 microfinance organizations and 44 microloan funds operate in Tajikistan. Increase in the number of loan institutions and their branches will promote expanding and improving the access of population to loan resources.

During the independence years, the number of audit companies with the right to audit the loan organizations in Tajikistan increased by five institutions. Now, 13 audit companies operate in the country, the list of which is available at the website of the National Bank of Tajikistan.

Over the independence, the number of representative offices of foreign banks in the country increased by three times.

The balance of loan institutions accounted for 1.2 billion Tajik Somoni by the end of 2010, which increased by 3.4 times compared to previous years. This indicator increased due to the increase in the statutory capital paid and income of loan institutions. Banks and loan institutions’ assets account for 6.2 billion Tajik Somoni and increased by more than 2.7 times compared to 2006. The assets amount increased mostly due to the increase in the loan portfolio, fixed assets and other assets. The banks and loan institutions’ loan portfolio reached 2.9 billion Tajik Somoni at the end of 2010, which increased by 2.6 times compared to 2006. The loans’ amount increased mainly due to the increase in the balance of loans issued by the country’s banks, particularly for the development of trade, agriculture and SME.

Investments. National Development Strategy’s blocks, which include the objectives on the public administration reform, improvement of the investment climate, development of the private sector and business, regional cooperation and integration into the world economy, are set forth with a view to creating general structural enabling environment, which all together will promote the economic development and achievement of the major development goals in the country.

To this end, the issues of establishment of conducive investment climate, encouragement of more foreign investments into the country’s economy, coordination of foreign aid, support and development of business, as well as effective use of the state property were centralized and given to the authorites of a central executive agency and a series of measures were implemented with a view to making more achievements.

In this regard, conducting a number of important internatio­nal events on providing aid to Tajikistan, including Consultative Meeting of Development Partners, Development Forums during the independence period made it possible to boost cooperation with foreign countries, international financial institutions and improvement of the process of encouragement and utilization of foreign aid and the aspect of foreign aid management also improved significantly.

The country’s President highly appreciates the contribution of development partners in the implementation of economic reform policy and in the national economic development in general, and emphasizes the importance of boosting cooperation between the Government of the Republic of Tajikistan and Development Partners on a regular basis.

In this connection, in 2010, on the initiative of the country’s President, Development Forum of Tajikistan was held within the National Development Council under the President of the Republic of Tajikistan with a view to discussing the most important economic and social issues of the country, the participants of which included the President of the Republic of Tajikistan, high-ranking representatives of development partners and civil society. Representatives from more than 20 countries and 19 high-ranking International Organizations attended this event.

During discussions, the Government of the Republic of Tajikistan and Development Partners drafted a joint statement, which would serve as a reliable basis for further improvement of cooperation and encouragement of additional resources for ensuring achievements in macroeconomic development, public administration reform, improvement of business environment and encouragement of investments and implementation of further economic reforms in general.

The personal contribution of Emomali Rahmon, President of the country, both in strengthening partnership relations and in boosting regional and international cooperation is really significant, because in this period, the reputation of Tajikistan as a member of the world community increased and it was recognized as an independent developing country with its national values, political will and economic potential.

Development partners mainly started funding investment projects of Tajikistan in 1997, and during 1997-2009 the total amount of investments within agreements accounted for 2338.63 million U.S. dollars, including loan facilities for implementation of investment projects – 1821.54 million U.S. dollars or 77.89 percent of the total amount of investment resources, grants – 290.67 million U.S. dollars or 12.43 percent, contribution of the Government of the Republic of Tajikistan – 183.69 million U.S. dollars or 7.85 percent and other sources – 42.73 million U.S. dollars or 1.83 percent of the total amount of investment.

The investments amounting 1792.33million U.S. dollards or 76.64 percent of the total investments pointed out in agreements, including loans amounting 1458.32 million U.S. dollars, grants amounting 214.43 million U.S. dollars, contribution of the Government of Tajikistan amounting 93.33 million U.S.dollars and other resources amounting 26.26 million U.S. dollars were utilized in this period.

As a result of specific measures undertaken by the Govern­ment of the Republic of Tajikistan with a view to improving the investment policy, the amount of the governmental investment projects portfolio increased in 2010 compared to 2009 and accounted for 2281.5 million U.S. dollars. This proves the positive results achieved in the process of political and economic reforms in the country and has been making it possible for Tajikistan to much more deserve the trust of the world community.

Only in 2010, agreements on 27 new investment projects were signed with international financial institutions and 559.7 million U.S. dollars, including loans amounting 334.2 million U.S. dollars and grants amounting 225.5 million U.S. dollars were encouraged for the implementation of these projects.

During the last ten years according to the statistic data some 1.6 billion U.S. dollars of foreign direct investment were invested into the economy of Tajikistan. In 2010, 459.1 million U.S. dollars of foreign investments were invested into the country’s economy, 230.9 million U.S. dollars of which is direct investment.

Lately, the implementation of large foreign direct investment projects such as construction of HPP “Sangtuda-1” funded by the Russian Company of “INTER RAO EES” with the capacity of 400MWt, rehabilitation of HPP “Pomir-1” with the investments of the USA and Switzerland, construction of five-star hotel “Hyatt Regency” in Dushanbe funded by the Russian Company of “Sozidanie”, hotel “Serena” funded by Aga-Khan Foundation finished and rehabilitation of mining enterprises such as “Zarafshon-Panjakent”, “Anzob” and “Adrasman” with the investments from People’s Republic of China started.

It is obvious that the foreign aid provided to the country is utilized for the implementation of the Poverty Reduction Strategy. With this regard, Tajikistan signed the Paris Declaration with a view to regulating its relations with its development partners and ensuring encouragement of foreign aid into the priority sectors of the country. Within this Declaration all development partners cooperate with the Government of the Republic of Tajikistan only directly with a view to developing the country’s promising and priority sectors.

At the same time, in 2009, Joint Country Partnership Strategy (JCPS) was signed between the Government of the Republic of Tajikistan and Development partners, the main goal of which is to improve the level and boost mutual cooperation and ensure effective use of foreign aid.

With a view to undertaking timely measures, the Consultative Council on improvement of the investment climate under the President of the Republic of Tajikistan was established. This Council conducts its meetings on a regular basis to discuss the important issues of investment and business and undertakes necessary measures to address each of these challenges.

Privatization of state property. The Government of Tajikistan has started privatization of state property as the main aspect of its economic reform policy from the very beginning of its independence and has been continuing this process so far.

The important process of economic reform starts from the privatization of state property and establishment of different types of ownership, which means the period of transition to market-based economy.

In 1999, six international bidding competitions on the sale of the shares of the Government within the cotton gins were conducted. In 2000, focus precisely was made on the accomplishment of the privatization of cotton gins, organization of auctions, privatization of small and medium enterprises, and efficient use of the state property.

With a view to expanding the process of state property privatization, on November 7, 2003, the Government of Tajikistan approved the Strategic Plan of Privatization of medium and large enterprises, restructuring of the natural monopoly agencies and huge enterprises for 2003-2012, after adoption of which the major phase of privatization started in Tajikistan.

As of January 1, 2010, 424 out of 459 medium and large enterprises included in the Plan were privatized and ten joint-stock companies were liquidated due to that the shares package was not sold out and five joint-stock companies are under liquidation process now. Furthermore, on the basis of the Resolution of the Government of Tajikistan six joint-stock companies were removed from the list of the Strategic Plan.

In general, more than 10 000 small enterprises and more than 1 300 medium and large enterprises have been privatized in Tajikistan from 1991 to present.

Business development. Emomali Rahmon, President of the Republic of Tajikistan and the Government of the Republic of Tajikistan pay a particular attention to the business development and identified the governmental support and protection of business as a priority economic policy of the country.

Meetings of Emomali Rahmon with local entrepreneurs, introduction of moratorium for inspection of SME, reform of the licensing system, improvement and adoption of legal and regulatory documents to overcome administrative barriers of business are the priorities implemented by the Government of Tajikistan, which will promote the improvement of the business environment and economic development.

The aspects, in which significant achievements are made, first of all include the introduction of “One-stop shop” in the system of official registration of businesses, obtaining license for construction, protection of investors’ rights through improvement of legislation on joint-stock companies and simplification of the bankruptcy procedure.

Energy and industry. Achievement of energy suffiency and ensuring the country’s connectivity are the strategic aspects of the Government’s policy. With a view to implementing this plan in reality and supplying the social and economic sectors of Badakhshon province with electricity, two turbines of the HPP of “Pomir-1” with the capacity of 14MWt was commissioned in 1994. On December 4, 2008, OJSHC “Barki Tojik” and the Indian Company of “KEC International Ltd.” signed an agreement on “Construction of Regional 220kV Line connecting Tajikistan to Afghanistan” within the Project of “Regional Power Transmission Interconnection”.

The project is in implementation stage and it will interconnect two countries with a transmission line between HPP “Sangtuda-1” in Tajikistan and Pul-e Khumre of the Islamic Republic of Afghanistan with the distance of 279 km. The Tajik part of the project consists of 116 km, for which about 26 million U.S. dollars is allocated and it has been implemented by the Indian Company of “KEC International Ltd.”. The Afghan part of the project will also be implemented by the Indian Company of “KEC International Ltd.”. According to this Agreement, there are plans to construct ETL of 220kW in 2011 and two substations with the capacity of 220/110/10kV in Baghlon and Kunduz in 2011 in Afghanistan.

In 2006, Memorandum of Understanding on construction of regional electricity transmission line and establishment of electricity market with the capacity of 1000 mWt was signed between Kyrgyzstan, Tajikistan, Afghanistan and Pakistan. The technico-economic assessment of the electricity transmission line of “Kyrgyzstan – Tajikistan – Afghanistan – Pakistan” (750km) is being developed now.

During 1991 – 2000, 235 small hydropower plants with the total capacity of 16mWt were constructed and commissioned in Tajikistan. Some 73 small HPPs were constructed and commissioned within the “Long-term Programme for Construction of Small Hydropower Plants in 2009-2010”.

The Governments of Tajikistan and Russia signed an agreement on the construction of HPP “Sangtuda-1” on November 16, 2004. The construction of the HPP “Sangtuda-1” started on April 21, 2005. The capacity of this HPP is 670MWt and it is comprised of four turbines with the capacity of 167.5MWt each. This facility was commissioned by the State Commission with participation of Emomali Rahmon, President of the Republic of Tajikistan, and Dmitry Medvedev, President of Russian Federation, in July 2009.

Emomali Rahmon, President of the Republic of Tajikistan, laid the corner stone of the HPP “Sangtuda-2” on February 20, 2006. The HPP “Sangtuda-2” with the capacity of 220MWt and annual capacity of 0.9 bln kWh has been constructed by the Iranian Company of “Sangob” and it is co-funded by the Government of Iran (189 million U.S. dollars), Tajikistan (40 million U.S. dollars) and the Iranian Company of “Sangob” (36 million U.S. dollars). According to the plans it is expected to commission the HPP in 2011 fully.

Renovation of the HPP “Varzob-1” with the financial support of the Government of India started in 2010. The project cost is 17 million U.S. dollars. The renovation and rehabilitation of the HPPs of “Varzob -1-2-3” are included into the Strategic Plan of OJSHC “Barki Tojik” for 2009-2011 and the cost of these activities will account for 35-40 million U.S. dollars.

Alongside with commissioning of the HPP “Sangtuda -2”, which is planned by the end of this year, continuation of activities on rehabilitation of the HPP “Roghun”, renovation of the existing HPPs, including HPPs of Norak, Qayroqqum, cascade of HPPs in the basin of rivers Varzob and Vakhsh and construction of other planned HPPs will make it possible to achieve energy sufficiency in the country within the next three years.

The cost of Electricity Transmission Line of “South-North”, the goal of which is to transmit electricity to the north of the country, accounts for 280 million U.S. dollars, 14 million U.S. dollar of which was allocated by the public budget and the rest of 270 million U.S. dollars was allocated by the Chinese “ExImBank”. The project was commissioned in October 2009.

Alongside with this, additional measures were implemented in substations and electricity transmission lines within the Project of “Construction of additional line for transmission of 500kW within “South-North” with the use of the loan of Chinese “ExImBank” amounting 53 million U.S. dollars and the contribution of OJSHC “Barki Tojik” amounting about 11 million U.S. dollars.

The Ministry of Energy and Industry of the Republic of Tajikistan and the Chinese Company of “TBEA Company Ltd.” signed an Agreement on the construction of coal-based thermal power plant with the capacity of 270MWt and with the prelimina­ry cost at 405million U.S. dollars on the basis of coal deposit of “Ziddi” based on exchange of natural resources principle and the construction activities have already started.

Decree of the President of the Republic of Tajikistan “On additional measures for energy saving” with a view to achieving energy sufficiency is another initiative of the President of the country to ensure high level of living standards of population and the primary goal of this Decree is to save the energy and to reduce the loss of water and energy resources of the country through the use of energy-saving electric equipment.

HPP Roghun’s overall capacity is 3600MWt, it is comprised of six turbines with the capacity of 600MWt each, its dam’s height is 335 meters, its reservoir capacity is 13.3km3 and its effective capacity is 10.3km3, its annual generation capacity is 13 bln kWh, the amount of stone and earth of its dam is 71 mln m3, and the total amount of its concrete is 2.5mln m3. In 2008, activities on construction and rehabilitation of HPP Roghun restarted and are underway with the financial support of the Government of the Republic of Tajikistan.

During 20 years, 125 new construction material enterprises were constructed and commissioned. Some 5000 people work for these enterprises. Now, six small and large cement plants, 80 brickyards, 46 sand and gravel enterprises, six stone processing enterprises, six lime and plaster enterprises and so forth operate in the country. Only in 2010, these enterprises produced products amounting more than 350 million Tajik Somoni, which is 46 million Tajik Somoni more and accounts for 115 percent compared to 2009.

Out of 143000km2 of the overall territory of the Republic of Tajikistan, 34.6 000 km2 of it are areas with oil and gas deposits. Natural gas has been produced in Khoja Sartez deposit. Tajikistan will make significant achievements in production of oil and gas in the nearest future.

Some 25 new light industry enterprises were established in Tajikistan during its independence. These enterprises process local raw materials and about 7000 new jobs were created within these enterprises. In industrial zone of Khujand city, “Niku Khujand Ltd” with the capacity of annual processing of 2500tones of cotton fiber co-invested by CJSC “Khujand Invest Cotton” and Iranian Company of “Niku Group” started operating on June 27, 2009. In March 2011, the second and third units of a sock factory with the full capacity of annual production of 7 mln pieces of sock were commissioned in Zafarobod district with the participation of the country’s President. “Olim Textiles Ltd.” was established in Mastchoh district for processing of 5700 tones of cotton per year, which was commissioned during the Navruz holidays in 2011 with the participation of the President of Tajikistan.

Overcoming the communication deadlock. Ensuring country’s connectivity with other countries of the world is the vitally important issue of the economic development of the country. Strategy of renovation of highways, construction of major highways, new bridges, railways, modern airports and establishment of connection with other countries of the world through launching new flights became determining factor of the development of internal and foreign trade and economic relations. This huge plan has been gradually implemented within the Concept of rehabilitation of the “Silk Road”.

During 20 years of independence, the highway of Kulob-Khorugh-Kulma-Qaroqurum, parts of Murghob-Kulma, Shohon-Zighar and Shkev-Zighar were constructed and the highways of Dushanbe-Qurghonteppa-Kulob, Dusti-Panji Poyon were reconstructed, and the tunnels of Istiqlol and Ozodi and an international bridge over the river Panj were commissioned. Renovation and reconstruction of the highways of Dushanbe – Chanoq, Vahdat – Jirgatol – Saritosh (Kyrgyz border), Dushanbe – Kulob – Khorugh – Murghob, the section of Dushanbe – Danghara, Qurghonteppa – Dusti and construction of the tunnel in the path of Shahriston and Chormaghzak are about to be accomplished.

In total, 1.6 000 km of highways, 18km of tunnels, 250 bridges and four km of antiavalanche facilities were repaired with the use of budget resources and foreign investments. During this period, also the construction of the railway of Qurghonteppa-Kulob and four interborder bridges over the river Panj were also accomplished. Construction and renovation of the highways of Dushanbe-Tursunzoda, Kulob-Qal’aikhum, Ayni-Panjakent are the priority projects, which are expected to be implemented in the nearest future.

Implementation of the above-mentioned projects enabled Tajikistan to become a favourable country to ensure the movement of people and shipment of goods to all regions of the country and to other neighbouring countries from four gates.

It was planned to implement several investment projects on improvement of the local railways and air traffic system with a view to establishing enabling environment for fuel saving, shipping goods and products in a short period and improving the quality of services to passengers. The construction of the railway of Vahdat-Yovon, highway of Vahdat-Qaramiq, Jaloliddini Rumi-Panji Poyon, modern terminal in Dushanbe airport, renovation of the airports of Khujand, Qurghonteppa and Khorugh are under way.

Connection of all regions of the country through railway is one of the main aspects of the transport sector. It is the time requirement to connect our country to railways of the neighbouring countries with a view to increasing the transit potential and getting access to seaports of Pakistan and Iran in the nearest future. In this regard, agreement has been reached among the neighbouring countries of China, Kyrgyzstan, Afghanistan, Iran and Turkmenistan and the projects of construction of trans-Asian railways of China-Kyrgyzstan-Tajikistan-Afghanistan-Iran are developed and included into the Governmental programmes.

As for the aviation, the structural reform of the sector was conducted with a view to harmonizing the level and quality of services and ensuring access of the local air companies to the international market. This measure made it possible to lay a sustainable ground for the further development of the sector.

The airplane park of Tajik air companies, including Tajik Air, Somon Air and East Air are being renewed step by step. Tajik airlines fly to over 20 cities in 8 far and near countries with flights directions being continuously extended. National airlines maintain flights on 73 routes including 8 local flight routes. There are 116 flights including 61 local ones being conducted on a weekly basis. There are also 19 foreign airlines that have flights to Tajikistan from 22 various Tajik cities. Foreign airlines have 55 flights a week. In 2010, Tajik airlines carried more than 700 thousand passengers and 3 thousand tons of cargo.

Telecommunication and information technologies are being developed within programs and strategies that have been previously adopted. In this regard, it is scheduled that major telecommunication services, namely local, inter-municipal and international telephony as well as access to the Internet will be ensured in all communities regardless of their geographical situation.

Therefore, the Infrastructural and Telecommunication Network Development Strategy is being implemented step-by-step by the Tojiktelekom national operator.

Cutting-edge digital technologies have been introduced in all telephone stations of the Tojiktelekom OJSC since 2002. Need for modernization of customers’ network followed introduction of digital technologies and this goal has been also achieved.

In 2005, the Tojiktelekom OJSC launched implementation of a project on construction of fiber-optic communication lines with outlet into neighboring countries. The project provides for replacing obsolete and outworn interurban network made of copper and aluminum cables by a new fiber-optic.

Implementation of the project in Badakhshoni Kuhi Autonomous Region provided opportunity to link our fibro-optic network up with the network in People’s Republic of China and that gave us an alternative outreach to global information society.

It is expected that the construction of connection lines will make it possible to connect the country with all neighbouring countries (in the west-north with Uzbekistan, in the south with Afghanistan, in north-east – with Kyrgyzstan, and in the east – with China).

The 25 km. STM – level connection line between Isfara (Tajikistan) and Batken (Kyrgyzstan) was built in 2009 and currently is under technical assessment.

Construction of the high-speed connection network in Khatlon region allowed connect telecommunication networks of Republic of Tajikistan and Islamic Republic of Afghanistan.

During 20 years of independence a rapid development of telecommunication sphere in the Republic of Tajikistan can be observed. With implementation of new technologies the connec­tion networks have been expanded, which, in turn, contributed into emergence of new forms and methods to restructure activity of the entire connection system.

In 1996 the very first common Tajik-American enterprise Close Joint-Stock company “TojikTel” was established: it offered its mobile connection services based on AMPS standards. During 15 years mobile connection of Tajikistan began from AMPS, and further has achieved to different standards of mobile connection – GSM, CDMA 20001Х, CDMA450 and 3G-UMTS.

In 1998 “Indigo Somoncom” mobile operator started its activity with the GSM-standard in Sughd region and from October 2001 till September 2002 three more mobile operators – “Indigo Tojikiston”, “TT-Mobile”, and “Babilon-Mobile” started offering their services based on GCS-standard, which resulted in reducing of the prices for this type of service. In 2004 “TK Mobile” operator started its activity, offering CDMA-based services.

Now 15 permissions are given to 8 operators based on the type of service. The quantity of the clients of mobile connection has achieved now 3,8 million people and continues to increase.

In Tajikistan a new WIMAX wireless connection has appeared, the non-mobile network, based on NGN technology is being widened, and within the connection structure system the wireless systems are being developed.

Construction and architecture. The state and the Government of the Republic of Tajikistan respectively create favorable conditions for the development of the construction and architecture sector in the country. Development of cities and towns of the country depends, first of all, upon the General Plan. In many cities and towns, where the General Plans were approved before the independence, the elaboration of a new project has become of an urgent necessity. Today, with a direct support of the President and the Government the General Plans are being designed step-by-step, for it will promote a better order of the new contemporary buildings, and will create conditions for beautiful streets.

In the capital city of Tajikistan – Dushanbe, construction of houses, hotels, and other cultural and social buildings is rapidly developing. While not a long time has elapsed, the image of the capital changed and it will get a new blossom in the near future. The method of mixing eastern and western styles in architecture, being used in construction of new buildings, will contribute in transformation of Dushanbe city into a modern and matchless city. The image of the capital city will change soon, blossoming and flourishing.

Construction of modern administrative, cultural, social and sport buildings and settings, in cities of Kulyab, Khujand, Tursunzoda, Danghara, Khorugh, Roshtqal’a, Panjakent and Vanj, beautiful gardens and parks in cities of Dushanbe, Khujand, Khorog and Danghara, sprunging up of multistoried houses and buildings in all cities and districts testifies that independent Tajikistan is prospering and the people’s lives and work conditions are becoming better.

For many years, indigent people of the country were waiting for a plot of land to build a private house. Fortunately, on the initiative of the President of the country only during two last years in all cities and districts the Government of the Republic of Tajikistan has granted plots of land to 127 thousand families in need in the quantity of 20 thousand hectares. This unique initiative has still been continuing.

Ensuring food security. Agriculture sector of Tajikistan is considered the main source of food production and raw materials for the industry. Provision of food security and economic well-being of the people depends on stable development of agriculture sector.

The President of the country in his address to the Parliament of the Republic of Tajikistan on 24th of April 2010 stressed that “The agriculture sector is one of the most important sector of the national economics, and provision of strategic Government’s goal – the food security, mainly depends on the level of development of this sector.”

During the independence, the Government of the Republic of Tajikistan has done a lot towards development of agricultural sector: implementation of land reform, renewal of households, and adoption of governmental programs on development of vegetation, cattle-breeding, seed planting sectors, and supply of agricultural machines have really pushed progress of the sphere. As a result, 13 Governmental field programs were adopted in agricultural sphere by today.

It was a result of measures and financial support of the Government of the Republic of Tajikistan, and instructions and tasks of the President Emomali Rahmon, that in 2009, in spite of difficulties, the crops production for the first time has achieved 1,5 million tons. Alongside with this, production of other agricultural products has increased significantly, for instance, production of vegetables – more than one million tons, cucurbitaceous – more than 400 thousand tons, potatoes – about 700 thousand tons, grapes – 140 thousand tons, meats – about 135 thousand tons, milk – 630 thousand tons, and eggs – 188 million pieces.

As a result of realized measures and hard work of glorious Tajik people, in general during last years, production of agricultural production has increased, and in comparison with 1997 agricultural production has increased in 2010 as much as 2,8 times. In particular, crops production has increased 2,3 times, potatoes – 6 times, vegetables – 3,3 and fruits – 2 times.

Increasing of an aggregate amount of agricultural production is connected to the increasing of export of agricultural production. The total volume of the exported fruits and vegetables in 2010 has increased for 30% and constituted about 250 thousand tons, including 4790 tons of canned food. The goods are exported to Russia, Ukraine, Kazakhstan, Uzbekistan, China, Pakistan, Iran, Afghanistan and several other countries.

After gaining of state independence, according to the state programs, the collective farms (known as “kolkhoz”) and state farms (known as “sovkhoz”) were transformed into more than 40 thousand social and public farm households.

Two historical orders of the President “About allocation of 50 thousand hectares of land for establishment of individual agricultural farms” as of 9 September 1995, and the second order as of 1 December 1997 about allocation of land to the population, which covered 25 thousand more hectares of land: these two orders created a good base for changes in agricultural sector. These documents played an important role in bridging over the difficulties of transition period. Realization of these initiatives contributed into attraction of the majority of rural people to profitable work, and by these means into reduction of unemployment rate in the country. Provision of the people with first need products, especially, flour, has improved.

During the years of independence, 141 thousand families were provided with more than 8,4 million square meters of housing. At the same time, in regard to construction of building for life, about 120 thousand additional hectares of land were allocated for 900 thousand families in the form of plots of land near their houses. In particular, during two last years with the same purpose, 20 thousand hectares of land were and still are being allocated to 127 thousand families, where majority of members are young people.

With the independence of the country and with the end of the civil war, economic and social infrastructure of the rural area, which was in critical situation, began to improve. Thereby, the decrease of agricultural production was stopped in 1996, and from the 1997 the development of agricultural sector started. Comparative increase of agricultural production during last 5 years constituted 20-25% of the gross domestic product.

The main aspects of agrarian sector are cotton growing, grain crops growing, potatoes growing, vegetables, watermelon, melon and gourd cultivation, gardening and viticulture, and cattle breeding. Today such sectors as bee-farming, poultry farming and fish farming are gaining a new development. In 2010, realization of Program of horse-breeding sector development has started. In general, today there are seven state programs, acting in the cattle breeding sector.

In the past, the Republic of Tajikistan was well known for the export of dried fruits, dried grapes and fresh fruits. During the last years cultivation of sunflower, stone fruits and subtropical fruits, which are being used as dietary and medical production, is being developed. The climate of the region is suitable for it, and due to the climate, the quality of Tajik fruits differs from the fruits of other countries.

The volume of the export of fresh and dried fruits was brought to 262 thousand tons, which was remarkable progress for Tajikistan. There are still wide opportunities in the country for increasing of the export of these sorts of agricultural production. To provide food security in the country, further development of cattle breeding sector is very critical. By 1 January 2010, amount of bovine animals in all categories of animal breeding farms was 2 million, small cattle – 4,2 million, all types of poultry – about 4 million, and 80 thousand horses. Sorts of special and unique strains of Tajikistan sheep are included into the gene pool of the world sheep-breeding, and they are used for improvement of the local strains of cattle. For example, Hissar sheep is recognized in the world market as most fatty and fast-growing sort of the regions of Tajikistan.

Thanks to favorable climate conditions of Pamir, our country joins the number of yak breeding countries. Tajikistan can further receive additional income from export of yaks and their meat.

The sector of poultry breeding is being established during three last years after acception of related state programs. To date, 23 poultry farming enterprises were established or reestablished, and now they supply the country population with their production.

Under the Resolution of the Government of the Republic of Tajikistan, the Program of the fish farming development in the Republic of Tajikistan for 2009-2015 was adopted for fish farming is one of the perspective agricultural spheres in future.

The effective development of agriculture cannot be imagined without use of modern science achievements. For this, the Government of the Republic of Tajikistan always pays a special attention to the development of scientific research institutions. In the sphere of agricultural industry the Academy of agricultural sciences deals with scientific research, 29 doctors of science and 118 candidates of science work in 6 Academy’s research institutions. 42 doctors of science and 147 candidates of science work in the Agrarian University of Tajikistan.

The scientists mainly do their research of the issues of animals and poultry selection, high-yielding and defensive to different climates seeds, methods and technologies of growing of agricultural cultures in all regions of the country, from high mountains of Pamir to valleys.

Tajikistan as a land of mountains possesses great water resources. After gaining the state independence, taking into account a limited amount of other mineral resources, for example, gases and oil, water resources are considered strategic resources of the country, and their rational and effective use is seen as the main tasks of the country’s development and realization of the state policy.

The issue of water resources use is considered the main direction of the state policy of the Republic of Tajikistan; related to the issue, our country is recognized as the leader of global trends related to water by its interesting and valuable proposals on the international level. It was an initiative of Tajikistan that 2003 was declared an International Year of Fresh Water, the Decade 2005-2015 – the International Decade of Actions “Water for Life”, and 2013 as Year of International Water Cooperation: all these testify about the success of the policy of the President of the Republic of Tajikistan in this trend.

Several international events were held in Dushanbe in reference to practical realization of these initiatives by the Government of the Republic of Tajikistan in cooperation with the UN, for instance, the International Fresh Water Forum in 2003, International Conference on Regional Cooperation on Transborder Rivers in 2005, International Conference on Water Related Disaster Reduction in 2008, and High-level International Conference on the mid-term review of the implementation of the International Decade “Water for Life” 2005-2015; the representatives and officials of UN member states and representatives of dozens of international organizations and non-governmental organizations have attended the conference.

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