Tajikistan Business Economy - The Times Of Central Asia

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Banking Regulation

Tajikistan and UK Discuss Banking Regulation and Sanctions Compliance

Representatives of Tajikistan’s government and banking sector met with Douglas Clark, the United Kingdom’s regional sanctions attaché, in Dushanbe to discuss banking regulation, risk management, and the development of bilateral cooperation in the financial sector. According to the National Bank of Tajikistan, the meeting was attended by First Deputy Prime Minister Hokim Kholikzoda, senior National Bank officials, and representatives of the Ministry of Foreign Affairs and the Ministry of Finance. During the talks, participants reviewed the current state of cooperation and discussed coordination in the financial sector. The agenda included Tajikistan’s banking system, compliance with international standards, supervisory mechanisms, and risk management. Kholikzoda said Tajikistan is interested in expanding mutually beneficial cooperation with international partners. He said the government is taking measures to improve the transparency and resilience of the country’s financial system and align the sector with international standards. Firdavs Tolibzoda, chairman of the National Bank of Tajikistan, briefed participants on efforts to support the stability of the banking system. These include compliance with international supervision and risk-management requirements, along with tighter compliance controls in credit and financial institutions. Clark praised Tajikistan’s engagement with international partners and its work on coordination mechanisms in financial-sector cooperation. At the conclusion of the meeting, both sides reaffirmed their readiness to continue cooperation in areas of mutual interest. As previously reported by The Times of Central Asia, the European Union removed three Tajik banks from its sanctions list in April.

Hydropower

Tajikistan Uses Only 5% of Its Hydropower Potential

Tajikistan is using only a fraction of its vast hydropower resources despite possessing the largest hydropower potential in Central Asia, according to the State Committee on Investment and State Property Management. The committee said Tajikistan remains the regional leader in hydropower resources and ranks among the world’s leading countries in terms of renewable water-energy potential. Although most of Tajikistan’s hydropower potential remains undeveloped, hydropower already dominates the country’s electricity mix. Tajikistan currently generates around 98% of its electricity from renewable sources, primarily hydropower. The figures underscore both the scale of Tajikistan’s renewable energy resources and the challenges the country faces in attracting the investment needed to fully develop them. Significant untapped potential also exists in other renewable energy sectors. The country’s economically viable solar energy capacity is estimated at 369,600 megawatts, although development of solar generation remains limited. Wind power resources are estimated at 4,485 megawatts, but the sector is still at an early stage of development. Despite the limited use of much of its renewable energy potential, Tajikistan already generates approximately 98% of its electricity from renewable sources, primarily hydropower. The government aims to increase that share further. Under the country’s national energy development strategy, Tajikistan plans to generate all of its electricity from renewable sources by 2032 and achieve the status of a fully “green” country by 2037. Officials also highlighted the sector’s considerable investment potential, citing opportunities in hydropower development, solar and wind generation, energy infrastructure modernization, energy storage systems, and the export of clean electricity to regional markets. Tajikistan has increasingly positioned renewable energy development as a cornerstone of its economic strategy, seeking to leverage its abundant natural resources to strengthen energy security, attract foreign investment, and expand regional electricity exports.

Bilateral Relations

Iran and Tajikistan Seek Closer Economic, Security Ties

Tajikistan and Iran have moved to deepen a relationship steeped in close cultural ties, holding talks on trade, security and the environment last week even as conflict in the Middle East weighs heavily on Iran. Sherali Kabir, Tajikistan’s industry and new technologies minister, and his Iranian counterpart Seyed Mohammad Atabak agreed that industrial cooperation between their two countries had entered “a qualitatively new stage,” the Tajik ministry said after they met on the sidelines of a gathering of the Shanghai Cooperation Organisation, a regional forum that includes Russia and China. At the meeting on June 5 in Kyrgyzstan, the two men talked about “the establishment of textile clusters based on Tajik cotton raw materials and Iranian technologies; joint projects in metallurgy and mineral processing; the production of agricultural machinery; pharmaceuticals and biotechnology; construction materials; as well as the chemical industry and coal processing,” according to the ministry. They also reviewed a plan to open a joint industrial park in Tajikistan and the application of digital technologies and artificial intelligence in industrial management. Earlier this year, the two countries said they planned to increase bilateral trade to $1 billion, which would roughly double the current annual amount. Tajik officials said trade had increased in the first quarter of this year, and the government sent a convoy of more than 100 trucks carrying what it said was humanitarian aid to Iran in March. On Monday, Iran and Israel appeared to be de-escalating after carrying out airstrikes on each other as a regional ceasefire came under strain. However, Tajikistan has not publicly taken a side in the war and instead called for a diplomatic solution. It is also working to deepen trade and other ties with the United States, which is seeking access to critical minerals and energy resources in Central Asia. The U.S. joined Israel in launching airstrikes on targets across Iran in February. In a separate meeting in Bishkek on June 5, the internal affairs ministers of Tajikistan and Iran discussed ways to counter transnational organized crime and build cooperation between their law enforcement agencies. The two countries, which don’t share a border, have long been concerned about instability and militant threats from Afghanistan, which shares a long border with both countries. According to state-run Iranian media, Interior Minister Ramazon Rahimzoda of Tajikistan also praised Iran during the encounter with counterpart Eskandar Momeni, saying it had shown resilience against “superpowers” in what the minister described as a testament to its technological skills and leadership. In another meeting last week, Shina Ansari, Iranian vice president and head of the environment department, and Bahadur Shiralizadeh, Tajikistan’s environment minister, talked on the sidelines of a Global Environment Facility forum in Samarkand, Uzbekistan. They discussed endangered species protection and pollutant monitoring, and Shiralizadeh said Tajikistan would welcome Iranian specialists on biodiversity, Iran’s state-run IRNA news agency reported. Iranian experts are involved in major hydropower projects in Tajikistan, which sees the technology as a way to alleviate energy shortages and reduce pollution from the use of...

Transport Infrastructure

Tajikistan EBRD Cooperation Targets Telecoms and Border Logistics

Tajikistan is set to attract approximately $43 million in financing to modernize its telecommunications infrastructure, while the government and the European Bank for Reconstruction and Development (EBRD) are also advancing plans for a new logistics hub on the border with Uzbekistan. The initiatives were discussed during the EBRD Annual Meeting and Business Forum and reflect the bank’s broader support for improving digital and transport connectivity in Tajikistan. A memorandum of understanding was signed between Tajikistan’s Ministry of Finance, the Communications Service under the government, and the EBRD to support the modernization and expansion of the country’s telecommunications network. The document was signed by First Deputy Finance Minister Yusuf Majidi, First Deputy Head of the Communications Service Parviz Noriyon, and Holger Münt, EBRD director for telecommunications, media and technology. The project aims to expand digital infrastructure, improve access to modern communications services, enhance service quality and support the country’s ongoing digital transformation. The planned investment of approximately $43 million is expected to strengthen regional connectivity while creating new opportunities for businesses and consumers. Separately, Transport Minister Azim Ibrohim met with EBRD Country Director for Tajikistan Holger Wiefel and other bank representatives to discuss transport infrastructure projects, including plans for a logistics center at the Dusti border crossing in Tursunzade, on the Tajik-Uzbek border. The talks focused on a preliminary feasibility study for the proposed logistics hub, covering legal, technical and economic aspects of the project. Officials said the preparatory work should allow the initiative to move to the next stage of implementation. The parties also reviewed the progress of ongoing transport-sector investment projects and discussed opportunities for further cooperation. The discussions come as Tajikistan seeks to strengthen both its physical and financial links with external partners. Last week, TCA reported that officials from the National Bank of Tajikistan and the Agricultural Bank of China had discussed expanding interbank cooperation, easing trade payments, supporting Chinese-backed investment projects and using digital tools in Tajikistan’s financial sector. The two sides also discussed the possibility of opening branches of Chinese banks in Tajikistan. That push reflects the growing role of external finance in Tajikistan’s infrastructure plans. TCA has previously reported that more than 70% of funding for the country’s state investment projects comes from three institutions: the World Bank, the Asian Development Bank and the EBRD, with China also remaining an important source of trade and investment financing. Tajikistan EBRD cooperation goes back more than three decades. Since beginning operations in the country in 1993, the bank has invested more than €1 billion across 192 projects. Under its 2025-2030 country strategy, the EBRD is focusing on private-sector competitiveness, sustainable energy, transport, municipal infrastructure, financial-sector development and support for small and medium-sized enterprises, with connectivity projects expected to play an increasingly important role in Tajikistan’s economic development and regional integration.

Cooperation

China Tajikistan Financial Cooperation Talks Focus on Banking Links

China and Tajikistan have discussed expanding financial cooperation, as Dushanbe looks to deepen banking links with one of its most important economic partners. The discussions took place on June 2 during a meeting between Firdavs Tolibzoda, chairman of the National Bank of Tajikistan, and Gu Shu, chairman of the Agricultural Bank of China, one of China’s largest lenders. The talks focused on practical banking links between the two countries, including easier settlement of trade payments, support for Chinese-backed investment projects, and the use of digital tools in Tajikistan’s financial sector. Tolibzoda described China as one of Tajikistan’s key strategic and economic partners and said cooperation has continued to grow. He noted that long-standing cooperation between Chinese banks and Tajik financial institutions has helped facilitate trade and investment flows between the two countries. The two sides also discussed the possibility of opening branches of Chinese banks in Tajikistan, a move Tajik officials said could further expand bilateral cooperation. The Chinese finance sector's role in Tajikistan has expanded alongside its wider economic presence. In 2025, China overtook Russia as Tajikistan’s largest trading partner for the first time, with bilateral trade reaching $964 million in January-May, up nearly 30% year-on-year. China’s share of Tajikistan’s foreign trade stood at 24.8%, compared with Russia’s 23.2%. During the meeting, Tajik officials presented an overview of the country’s economic performance, highlighting strong growth, stable inflation, and a banking sector they said had become more resilient. According to Tolibzoda, recent reforms have improved the performance of financial institutions, increased deposits, expanded lending to the real economy, and strengthened overall financial stability. Gu Shu welcomed the prospects for Tajikistan’s economic development and expressed the Agricultural Bank of China’s readiness to deepen cooperation with the National Bank of Tajikistan. Potential areas of cooperation include professional training and knowledge exchange, support for green finance initiatives, digital transformation projects, cybersecurity, compliance systems, and workforce development, he said. The meeting concluded with both sides reaffirming their interest in expanding financial cooperation and exploring new opportunities to strengthen economic ties between Tajikistan and China.

Bilateral Trade

Tajikistan and Pakistan Agree to Expand Trade and Economic Cooperation

Tajikistan and Pakistan have agreed to deepen trade and economic cooperation following the eighth meeting of their Joint Commission on Trade, Economic, Scientific, and Technical Cooperation in Dushanbe. The meeting concluded with the signing of a protocol outlining measures to expand bilateral cooperation across a range of sectors, including trade, investment, energy, agriculture, and transport. According to Tajikistan’s Ministry of Energy and Water Resources, the discussions also covered banking, education, science and technology, tourism, youth policy, sports, and communications. Tajikistan’s delegation was led by Minister of Energy and Water Resources Daler Juma, while Pakistan was represented by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari. Officials from both countries said bilateral relations have improved in recent years, supported by growing political engagement and economic cooperation. Trade between the two countries reached $43 million in 2025, according to figures presented during the meeting. Bilateral trade totaled $8.9 million in the first quarter of 2026. The two sides agreed on the need to increase trade volumes by expanding the range of goods exchanged, identifying new areas of cooperation, and developing ties between businesses and investors. Particular attention was given to the CASA-1000 electricity transmission project, which aims to export surplus hydropower from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan. Participants described CASA-1000 as a key element of regional energy cooperation and an important platform for expanding economic links between Central and South Asia. The protocol of the commission’s eighth session is expected to help advance future cooperation and support the implementation of joint initiatives. The meeting ended with the signing of the protocol of the commission’s eighth session, which both sides said would help advance future cooperation and support the implementation of joint initiatives.