WB: Volume of investments in Tajik economy remains low

By Azernews

By Kamila Aliyeva

Since 2008, the average annual volume of total investments in the Tajik economy amounts to about 15 percent of GDP, remaining low compared to regional and international standards.

The World Bank's country report on Tajikistan for 2016 reads that the unfavorable environment for doing business, as well as barriers to foreign direct investment, did not help to attract private investment and limited investment into the country.

"The key obstacles mentioned by local and foreign entrepreneurs are inadequate infrastructure, especially insufficient and unreliable energy supply, weak rule of law, especially with respect to property rights, as well as tax policy and administration," the report said.

In order to achieve higher growth rates, Tajikistan needs to implement deeper structural reforms aimed at reducing the role of the state and increasing the role of the private sector in the economy through the creation of a more favorable business environment, according to WB experts.

The  State Committee for Investments and State Property Management of the country reported that  at present as many as 62 state investment projects for a total of $ 2.7 billion are being implemented in the country.

In particular, 22 grant, 13 loans projects, as well as 27 projects with mixed financing (grants + loans) are being implemented.