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Society

Asian Development Bank: Poverty in Tajikistan Declining, But Inequality Rising

Tajikistan is experiencing mixed socioeconomic trends. While the country’s poverty rate has declined markedly in recent years, inequality and structural economic constraints remain significant challenges. This assessment is outlined in the Asian Development Bank’s (ADB) country partnership strategy for 2026-2030. According to the ADB, the share of the population living below the national poverty line fell from 30.9% in 2020 to 19.9% in 2024. However, the improvement has been driven largely by rising incomes linked to wage growth and remittances from labor migrants rather than by sustained job creation within the domestic economy. Analysts note that this development may contribute to widening inequality, particularly in rural and remote areas where access to economic opportunities remains limited. Most of Tajikistan’s population lives in southern and central regions, where economic activity is heavily dependent on agriculture. These areas face heightened social risks. Women remain among the most vulnerable groups due to restricted access to employment opportunities and higher levels of food insecurity. Despite overall progress in poverty reduction, food security challenges persist. Approximately 1.5 million people are considered vulnerable, while around 50,000 are experiencing acute food shortages. In the 2025 Global Hunger Index, Tajikistan ranked 63rd out of 123 countries, the lowest position among Central Asian states. The ADB identifies weak economic diversification as a key structural issue. Heavy reliance on agriculture leaves the country exposed to external shocks and climate-related risks. Private sector development has been slow, constrained by shortages of skilled labor, underdeveloped infrastructure, and a complex regulatory environment. Limited integration into regional and global markets further hampers growth. Infrastructure quality remains among the weakest in the region. Restricted access to transport networks and logistics services continues to hinder industrial development and trade expansion. The energy sector also faces structural challenges. Dependence on hydropower increases vulnerability to climate change, particularly through declining water availability and glacier melt. At the same time, gaps in education and vocational training contribute to persistent shortages of qualified workers. These pressures are intensified by high levels of labor migration, especially among young people. As a result, the domestic economy experiences workforce shortages in sectors that could otherwise drive long-term growth. Although agriculture remains central to livelihoods, it is increasingly exposed to climate risks and constrained by limited access to markets, financing, and modern technologies.

Asian Development Bank

ADB Supports Turkmenistan’s Power Grid Modernization with $500 Million Project

The Asian Development Bank (ADB) has been working with Turkmenistan since 2018 to modernize the country’s electricity infrastructure, marking a milestone in cooperation, Business Turkmenistan reported on January 12. At the core of this partnership is the $500 million National Power Grid Development Strategy, the first initiative by an international financial institution in Turkmenistan’s energy sector. According to the ADB, the project aims to enhance the reliability of the national power network and bolster the country’s electricity export capacity. The project has financed the construction of approximately 1,400 kilometers of power transmission lines at 110, 220, and 500 kilovolts. In addition, 11 substations have been built across the regions of Akhal, Balkan, Dashoguz, and Lebap, as well as in Ashgabat. Technical assistance valued at $1.5 million was also provided through a grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The ADB reported that the project is already yielding measurable results. Electricity exports rose from 3.4 terawatt-hours in 2017 to 9.3 terawatt-hours in 2023, driven by increased transmission capacity and system stability. The State Electric Power Corporation Turkmenenergo, the ADB’s local partner, contributed $175 million to the project’s implementation. The ADB described its role as supporting sustainable economic growth and development across Asia and the Pacific through the provision of loans, grants, and technical assistance. Cooperation between the ADB and Turkmenistan has also expanded into other sectors. In September 2025, the ADB approved a $75 million loan and a $2 million grant from the Japan Fund to strengthen Turkmenistan’s nursing and midwifery workforce. The initiative marked the ADB’s first health sector project in the country.

Lake Issyk-Kul

Kazakhstan and Kyrgyzstan Plan Shorter Route from Almaty to Lake Issyk-Kul

Kazakhstan has formed a working group to develop a shorter road route from Almaty to Lake Issyk-Kul in Kyrgyzstan, which could reduce travel time by nearly half. The initiative, reported by Kazakh media, aims to improve regional connectivity and enhance tourism flows between the two countries. According to Kazakhstan's Ministry of Transport, the proposed route will serve as an alternative to the current 460-kilometer drive through Korday and Bishkek. The new road is expected to be approximately 277 kilometers long, with a travel time of about three hours. Preliminary estimates indicate the road will traverse roughly equal distances in both countries: 127 kilometers in Kazakhstan and 150 kilometers in Kyrgyzstan. Much of the required infrastructure is already in place. Kazakhstan will need to repair about 80 kilometers of road, while Kyrgyzstan is expected to reconstruct just six kilometers. The project was initiated by the Asian Development Bank (ADB), which has committed grant funding for the development of a feasibility study. An agreement to that effect was signed in December 2024. In spring 2025, Kazakhstan and Kyrgyzstan established a joint working group to develop infrastructure for the Almaty-Bishkek and Almaty-Issyk-Kul economic corridors. That summer, both countries also began upgrading border crossing facilities. The current phase of the project involves preparing the feasibility study. The study, led by the Kazakh authorities in collaboration with the Eurasian Development Bank, is expected to be completed by September 2026. It will determine the road’s exact route, classification, projected traffic volume, financial model, and potential toll structure. Early indications suggest the road may operate as a toll road. Once approved by both governments, the feasibility study will serve as the basis for a final construction decision. Project financing is expected to follow a public-private partnership model, including the formation of a joint venture between Kazakhstan and Kyrgyzstan. The idea of creating a direct route to Issyk-Kul for Kazakh tourists has been under discussion for decades. Since Kyrgyzstan’s independence, successive presidents have expressed support for the project, but political disagreements have repeatedly stalled progress. Similar political issues prevented the reopening of a once-popular hiking trail from Almaty to Issyk-Kul. During the Soviet era, tourists could walk from Kol-Sai to Issyk-Kul via the Kyrgyz village of Tyup, roughly a 30-kilometer journey. The trail remained active until the 2000s, when it was closed due to bilateral tensions. A final attempt to revive cross-border tourism occurred in August 2022, when a delegation of politicians, journalists, and tourism experts retraced the route. While the two governments agreed on border and passport control protocols, the initiative was soon suspended again. Experts suggest that, with sustained political will, both the highway project and the restoration of the historic hiking route could be implemented in the future.

Banking

ADB Provides Tajik Bank with First Direct Loan of $10 Million

Bank Eskhata OJSC (Open Joint-Stock Company) and the Asian Development Bank (ADB) have signed a direct lending agreement, marking a new stage in financing for small and medium-sized enterprises (SMEs) in Tajikistan. This is the first time the ADB has issued a direct loan to a Tajik bank, bypassing intermediary financial institutions. The ADB stated that the format reflects a high level of trust in the partner bank and confidence in its stability within the national financial market. Tajikistan has been a member of the ADB since 1998. Under the terms of the agreement, the ADB is providing a loan in local currency equivalent to $10 million. The funds are intended to support entrepreneurs implementing environmentally friendly and energy-efficient technologies, as well as projects that reduce environmental impact and contribute to building a sustainable economy. Akmaljon Saifidinov, CEO of Bank Eskhata, described the agreement as strategically important. “We are honored to be the first financial institution in Tajikistan to receive direct lending from the ADB. This landmark event opens new horizons for supporting MSMEs and advancing green finance,” he said, referring to micro, small, and medium-sized enterprises. He added that the partnership with the ADB further strengthens the bank’s role as a leader in innovative financial solutions. The ADB expects the direct lending mechanism to significantly improve access to financing for businesses. “Direct lending will significantly expand enterprises’ access to financing and serve as a key stimulus for the development of green initiatives in Tajikistan,” said Ko Sakamoto, head of the ADB office in Dushanbe. The loan is expected to support projects in energy efficiency, green technologies, and sustainable business models, areas that have traditionally lacked access to long-term financing. In a separate initiative, the ADB recently approved a $3 million grant to enhance Tajikistan’s capacity for glacier monitoring and natural disaster forecasting. The project includes the creation of a unified digital system for analyzing risks related to snow and ice melt and aims to improve public safety in mountainous regions.

Glacier Monitoring

ADB Approves $3M for Glacier Monitoring in Tajikistan

The Asian Development Bank (ADB) has approved a $3 million grant to enhance Tajikistan’s glacier monitoring and natural disaster warning capabilities. The initiative aims to reduce risks linked to accelerated snow and ice melt, particularly in the country’s mountainous regions, and improve public safety. The grant is financed by the Japan Fund for Prosperous and Sustainable Asia and the Pacific (JFSB), which is supported by the Government of Japan through the ADB. Ko Sakamoto, ADB’s Permanent Representative in Tajikistan, emphasized the project's importance for the country. “Glaciers and snow are important for water supply, agriculture, and hydropower, but their rapid melting caused by extreme weather events can trigger devastating floods, avalanches, and other disasters,” he said. Sakamoto noted that the initiative will provide Tajikistan with modern tools for forecasting and responding to climate-related threats. The project is scheduled to be completed by 2029, with most activities to be implemented in high-risk areas of the Gorno-Badakhshan Autonomous Region. The Hydrometeorological Agency has been designated as the project’s executive body. Among the key components is the creation of a unified digital data system to improve the accuracy and timeliness of glacier and snow cover monitoring. The system will enhance the collection, storage, and analysis of data critical for disaster risk assessment. To manage the new infrastructure, technical specialists from the Hydrometeorological Agency will receive training in modern monitoring and data management methods. The project also emphasizes the active inclusion of women in the training process, aligning with ADB’s commitment to inclusive development. Improving early warning systems is another central element of the initiative. Plans include updating disaster risk management strategies, strengthening coordination between local authorities and communities, and enhancing the clarity and timeliness of public alerts related to glacial and snowmelt hazards. Tajikistan joined the ADB in 1998. Since then, the partnership has supported a wide range of infrastructure and development projects, including the modernization of major highways, such as the Obigarm-Nurobod, Dushanbe-Bokhtar, Aini-Penjikent, Dushanbe-Tursunzade, and Vose-Khovaling corridors, as well as the restoration of irrigation systems, expansion of water supply networks, and construction of schools and hospitals.

Water Security

Glacier Melt Threatens Central Asia’s Water Security, Experts Warn at Regional Forum

The accelerating retreat of glaciers poses a serious risk to water security across Central and West Asia, scientists and journalists warned during an online media forum jointly hosted by the Asian Development Bank (ADB) and the International Centre for Integrated Mountain Development (ICIMOD) on December 10, according to Asia-Plus. The forum focused on the growing impact of glacial melt in mountain regions, including the Pamirs, Tien Shan, Hindu Kush, and Himalayas, where shrinking ice reserves are increasingly disrupting water supplies for agriculture, energy, and drinking water. A key highlight was the ADB’s Glacier to Farms (G2F) program, presented by senior climate adaptation specialist Chris Dickinson. The initiative, spanning nine countries including Tajikistan, Uzbekistan, Armenia, and Georgia, aims to link glacier monitoring with practical, climate-resilient policy measures. Unlike past approaches that primarily diagnosed the problem, G2F offers technical and financial solutions designed to support communities in adapting to climate change. The $3.5 billion initiative, backed in part by $250 million from the Green Climate Fund, leverages a co-financing model that aims to attract $10 in additional investment for every dollar committed. The program envisions a full climate adaptation chain from satellite-based glacier monitoring and mountain observation stations to downstream interventions such as crop insurance, farmer support, and modernization of water infrastructure. “Glaciers are the origin of the entire food and water system,” Dickinson said. “Their rapid retreat threatens lives and livelihoods far beyond mountain regions.” Tajikistan serves as a pilot site for the program due to its heavy reliance on hydropower and its largely mountainous terrain. One of the project's key goals is to enhance the country’s hydrometeorological services and strengthen monitoring of snow cover, glacier movement, landslides, and related hazards. A modern early warning system is being developed for the Panj River basin, combining data on glacial lakes, mudflows, precipitation, and seismic activity. The alerts will be sent to vulnerable communities via mobile networks, complemented by local training programs to ensure proper responses. Forum participants noted that the effects of glacial retreat are already evident. Glaciers in the Tien Shan and Pamir ranges feed the Amu Darya and Syr Darya rivers, vital water sources for Central Asia’s agriculture, energy, and drinking needs. An estimated 74% of the Amu Darya’s flow comes from snow and glacier melt. In the Indus basin, the figure is about 40%. Yet only a small number of the region’s more than 54,000 glaciers are regularly monitored, leaving gaps in early warning systems and long-term planning. Experts from ICIMOD and ADB described glacier melt as a “cascading crisis.” Rising temperatures are fueling more frequent landslides, floods, and mudflows, while droughts reduce crop yields and damage pastures. Glacial lake outburst floods, sudden and destructive releases of water, pose grave risks to nearby settlements. Since the 19th century, the region has recorded around 500 such incidents, and their frequency could triple by the end of this century. Heatwaves and water quality issues further compound the risks. Recent glacial activity in Tajikistan underscored the forum’s urgency. In October, a massive...