Tajikistan Business Economy - The Times Of Central Asia

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Foreign Trade

Switzerland Becomes Tajikistan’s Third-Largest Trading Partner

Switzerland became Tajikistan’s third-largest trading partner in the first five months of 2026, overtaking Kazakhstan and ranking behind only China and Russia, Avesta reported, citing Tajikistan’s statistics agency. Trade turnover between Tajikistan and Switzerland exceeded $1.013 billion between January and May, marking a sharp rise that pushed the country into the top three trading partners for the first time. The shift represents a significant change from 2025, when Kazakhstan held third place with trade turnover exceeding $1.19 billion, while trade with Switzerland totaled about $386.5 million, nearly half the 2024 level. In the first five months of 2026, Kazakhstan fell to fourth place with around $649 million in bilateral trade, while Switzerland moved up to third. Switzerland also became the leading destination for Tajik exports, accounting for 36.3% of the country’s total exports, or $508.2 million. China ranked second with a 25.7% share, followed by Turkey at 7.6%. China and Russia remain Tajikistan’s two largest trading partners overall. Trade with China reached nearly $1.44 billion during the reporting period, up 50% year-on-year, while trade with Russia rose 23.1% to $1.11 billion. In imports, China accounted for 24.7% of total inbound trade, followed by Russia at 24%, Kazakhstan at 13.8%, and Switzerland at 11.6%. Tajikistan’s total foreign trade turnover for January-May 2026 exceeded $5.7 billion, up 48.5% from the same period a year earlier. Imports accounted for nearly $4.37 billion, while exports totaled about $1.4 billion. The country’s main exports included mineral products, base metals and metal goods, textiles, and agricultural products. Imports were dominated by mineral products, machinery and equipment, metals, food products, and chemicals. The sharp increase in trade with Switzerland likely reflects the role of precious metals and other commodity-linked transactions in Tajikistan’s trade structure.

Free Economic Zones

Tajikistan Secures $1.7 Million Grant to Digitize Free Economic Zones

Tajikistan will receive a $1.7 million grant to introduce a “Single Window” digital system in the country’s free economic zones to simplify administrative procedures and improve the investment climate. The project agreement was signed in Vienna during a meeting between representatives of Tajikistan’s government, the United Nations Industrial Development Organization, and the Russian Federation. According to Tajikistan’s Ministry of Economic Development and Trade, the talks were attended by Minister of Economic Development and Trade Abdurakhmonzoda Abdurakhmon Safarali, Tajikistan’s ambassador to Austria, Manuchehr Jobir, UNIDO Director General Gerd Müller, and Russia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov. Following the meeting, Abdurakhmonzoda and Müller signed the grant agreement, with the funding to be provided by Russia through UNIDO. The new system is expected to speed up the digitalization of Tajikistan’s free economic zones by simplifying administrative procedures and making their work more transparent. Officials say the platform will also improve conditions for attracting foreign investment and supporting business development. The “Single Window” model is widely used internationally to simplify interactions between businesses and government agencies by centralizing permits, customs procedures, and regulatory approvals within one digital platform.

Connectivity

EU Launches Platform to Mobilize Up to €2 Billion for Europe–Central Asia Connectivity

The European Commission launched a Connectivity Agenda Platform on June 23, 2026, and concluded statements of intent with international financial institutions expected to mobilize up to €2 billion ($2.3 billion) for transport, border-crossing and trade-facilitation projects across the Black Sea region and the South Caucasus. The initiative was unveiled at a high-level ministerial meeting in Brussels, hosted by European Commissioner for Enlargement Marta Kos, Commissioner for International Partnerships Jozef Síkela, and Commissioner for Sustainable Transport Apostolos Tzitzikostas. The meeting brought together transport ministers and senior officials from EU member states, as well as representatives from Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Türkiye, Ukraine, and Uzbekistan, alongside international lenders, to advance connectivity projects under the EU’s Global Gateway strategy. The new platform is designed to coordinate investments and policy actions across transport, energy, digital connectivity, and trade. Participants also agreed to improve the operational efficiency of the Trans-Caspian Transport Corridor, a wider framework that includes the Trans-Caspian International Transport Route, or TITR, also known as the Middle Corridor. The route links China and Europe through Central Asia and the South Caucasus, offering an alternative to transport routes crossing Russia. The European Commission said the expected financing would support transport infrastructure, border-crossing modernization, and trade-facilitation projects aimed at improving freight movement across the corridor. “The Trans-Caspian Transport Corridor is becoming a vital bridge between Europe and Asia,” Síkela said, adding that the investments would help make the route faster, more reliable, and better integrated. Tzitzikostas said stronger transport links were critical for economic competitiveness and regional resilience. The platform’s launch came during Kazakh President Kassym-Jomart Tokayev’s official visit to Brussels, where he met with European Council President António Costa and European Commission President Ursula von der Leyen. In an EU–Kazakhstan joint statement, the leaders reaffirmed the strategic importance of the Trans-Caspian corridor and pledged deeper cooperation under the EU’s Global Gateway strategy. They also highlighted the EU’s role as Kazakhstan’s largest trade and investment partner and agreed to deepen cooperation in critical minerals, energy, transport, digitalization, and emerging technologies. Speaking at the Kazakhstan-EU roundtable in Brussels, Tokayev said Kazakhstan was investing heavily in infrastructure to position itself as a regional logistics hub connecting Europe, Central Asia, China, the Caucasus, and the Middle East. According to Tokayev, cargo volumes along the Middle Corridor have risen fivefold over the past six years, from 0.8 million tons to 4.1 million tons annually, with Kazakhstan targeting a capacity of 10 million tons. He said Kazakhstan has invested more than $35 billion in transport and logistics infrastructure over the past 15 years, with the Caspian ports of Aktau and Kuryk serving as major transit gateways. Tokayev also welcomed logistics agreements worth nearly $1 billion signed on June 23 by the Development Bank of Kazakhstan: one with the European Investment Bank, and a separate agreement with a banking syndicate including Commerzbank, JPMorgan Chase, and Standard Chartered, backed by guarantees from the Multilateral Investment Guarantee Agency (MIGA). A day earlier, Kazakhstan and European partners announced four transport-related agreements worth...

School Development Project

Tajikistan to Receive $20 Million Kuwait Fund Loan for Schools

Tajikistan will receive concessional financing equivalent to about $20 million from the Kuwait Fund for Arab Economic Development to implement an education-sector project. The funds will be used to build and equip schools in different regions of the country. According to Tajikistan’s Ministry of Finance, the agreement was signed in Vienna during a meeting between Finance Minister Faiziddin Qahhorzoda and Waleed Al-Bahar, acting director general of the Kuwait Fund for Arab Economic Development. The parties signed a loan agreement for the School Development project, under which the fund will provide Tajikistan with a concessional loan of 6 million Kuwaiti dinars, equivalent to about $20 million. Additional financing of $4.5 million will be provided by the Government of Tajikistan. According to the Finance Ministry, the authorities expect the project to expand educational infrastructure and improve the quality of general education as the number of schoolchildren grows. The program includes the construction of new facilities and the provision of equipment for schools in a number of cities and districts across the country. In recent years, Tajikistan has sought international concessional financing for social infrastructure, including education and healthcare. It has also drawn financing for public utilities.

Industrialization

Tajikistan Targets Industrial Growth as Share of GDP to Reach 30% by 2030

Tajikistan aims to increase industry’s share of gross domestic product to 30% by 2030 as part of its accelerated industrialization strategy, the State Committee on Investments and State Property Management said. The committee said the country has a strong raw materials base to support industrial development. According to the agency, Tajikistan has 10 of the 12 critical minerals most in demand for projects linked to the global green transition. More than 800 mineral and precious metal deposits have also been identified across the country, it said. The European Bank for Reconstruction and Development has also described Tajikistan as having more than 600 documented deposits of around 50 minerals, including silver, gold, lead, and zinc. The bank has said the country holds some of the largest antimony reserves in the region, though limited private investment has slowed development of the sector. Authorities say the focus is shifting beyond raw material extraction toward processing industries. Priority sectors include textiles, agricultural processing, construction materials, machine building, chemicals, and electrical equipment manufacturing. According to the committee, the strategy is designed to create investment opportunities across the full production cycle, from resource extraction to finished goods aimed at regional and international markets.

Aviation

Turkish Airlines to Fly Daily to Dushanbe

Turkish Airlines will increase flights between Istanbul and Dushanbe from five to seven days a week, according to Turkey’s ambassador in Tajikistan. “Starting on August 3, daily Dushanbe–Istanbul flights will be available, further strengthening connectivity between Turkey and Tajikistan,” Ambassador Umut Acar said on Facebook. The development comes amid signs of domestic growth in commercial aviation in Tajikistan, whose national carrier, Somon Air, said last month that it was expecting the delivery of new Boeing 737 MAX 8 aircraft in the next few months. In April, Shohin Airlines, a new private airline registered in Tajikistan, said it was in the final stage of acquiring four planes from the Airbus A320neo line of aircraft. In 2025, civil aviation authorities in Tajikistan lifted many market restrictions under a new government policy. The move was aimed at encouraging competition, leading to better prices for passengers, more efficient service, and route diversification.