Tajikistan has one of the lowest per capita GDPs among the former Soviet republics. Due to limited domestic employment opportunities, over a million Tajik citizens work abroad. As a percentage of GDP, remittances sent home by these Tajik laborers are the largest in the world. Recovery has been slowed by uneven economic reforms, weak governance, high external debt and seasonal electric power shortages. Moreover, as a landlocked country, Tajikistan relies heavily on unpredictable regional rail connections for imports and exports. Improvements in regional trade will expand economic development, strengthen cross-border linkages, and ultimately lead to stability in the region. One opportunity for such trade is in the energy market, as Tajikistan is rich in water resources and produces hydropower for regional export.
USAID facilitates development of a regional electricity market and supports the Government of Tajikistan to establish a transparent, competitive market to increase electricity trade for export beyond Central Asia. USAID supports the Pamir Energy Company to foster cross-border energy trade between Tajikistan and Afghanistan, extending electricity lines across the border to meet the energy needs of villages in Afghanistan’s Badakhshon province.
USAID also promotes energy efficiency measures in Dushanbe’s residential sector by demonstrating the potential for available energy efficiency and renewable energy for improved heating services. USAID supports Tajikistan’s accession to the World Trade Organization, focusing on reduction of trade barriers and expanded access to market information.
- USAID programs strengthened microfinance systems. In one year, participating banks quadrupled their portfolio to $7.1 million and served over 3,500 active clients.
- USAID helped facilitate over $2.5 million in trade deals for Tajik companies.
- USAID provides technical support to the Intergovernmental Council for the CASA-1000 (500 KV electric transmission line) project that will connect Kyrgyzstan and Tajikistan with Afghanistan and Pakistan. Realization of the CASA-1000 project will help Tajikistan sell its summer surplus of electricity and invest more resources into the development of the energy industry in the country.
Last updated: May 10, 2013