Over the last two decades, significant reforms have been undertaken by the Government in Tajikistan to open up the economy and introduce market-based mechanisms. However, several regulatory obstacles persist, and Tajikistan lags behind other countries in the region in terms of investment attraction.
Recognizing the need to attract more and more diversified FDI to support the country's economic and social development objectives, and the role that FDI could play in key sectors, such as agribusiness, tourism and textiles, the authorities have acknowledged the need for further reforms.
In this context, the Investment Policy Review (IPR) proposes concrete measures to improve the investment environment and attract FDI projects for sustainable development. This includes clearer definitions and objectives in the legislation on investment, further changes to the business registration procedures, improved land market, and actions to strengthen the tax, competition, labour and commercial justice regimes.
The IPR also provides recommendations for implementing a modern investment promotion strategy and upgrading existing promotion structures.
The Review also calls for adopting policies and programmes to orient and maximize the sustainable development impact of FDI on the local economy.
To this end, the IPR recommends enhancing policies to promote skills development, entrepreneurship and knowledge transfer, as well as improving the conditions for technology transfer and the development of linkages between small and medium-sized enterprises (SMEs) and larger companies.