DUSHANBE, Tajikistan, December 1. The Asian Development Bank (ADB) has approved a $50 million grant to help Tajikistan advance structural reforms aimed at expanding green jobs and strengthening economic resilience, Trend reports via ADB.
The funding, provided through the Asian Development Fund under subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program, focuses on economic diversification, fiscal transparency, digital transformation, and boosting Tajikistan’s competitiveness in regional and global markets.
ADB Country Director for Tajikistan Ko Sakamoto said the new subprogram builds on progress made last year, offering “a sequenced and forward-looking package of reforms” to support long-term sustainable growth. Key reforms include improving SME access to finance through amendments to leasing legislation, developing green taxonomies, introducing incentives for climate-friendly enterprises, and adopting a law on organic production.
The program also expands fiscal risk reporting to include climate-related shocks, initiates climate budget tagging, and strengthens digital transformation through enhanced cybersecurity, new fiscal incentives for tech-focused businesses, and the creation of an IT park.
To support export development, Tajikistan will operationalize assistance for small exporters, prioritize women-led and climate-friendly enterprises, and continue mobilizing green finance - including through the issuance of the country’s first sovereign green bonds.
This latest approval comes shortly after ADB endorsed another major initiative to support Tajikistan’s rural economy. On 21 November, the bank approved $17 million in grant financing to help the country digitalize and modernize its livestock sector in order to raise rural incomes and improve access to nutritious food. The package includes $14 million from the Asian Development Fund and $3 million from the Japan Fund for Prosperous and Resilient Asia and the Pacific.
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