On May 6, 2020, the IMF Executive Board approved a disbursement of USD189.5 million for budget support to help Tajikistan. Development partners, including the World Bank and Asian Development Bank also provided financial support to Tajikistan around USD 150 million. The Government provided VAT exemptions on essential imports, lump-sum assistance equivalent to minimum wage to vulnerable households and other socially disadvantaged groups as well as extended the coverage of targeted social assistance to all 68 districts of country. Health workers received supplemental pay, while the increases of tariff on electricity, water, and communal services have been postponed until end of 2020. Government also provided free medical care to citizens placed under medical care and COVID-19 patients, as well as sick leave and compensation benefits. Government provided grain, seed, and fuel to farms to boost food security, and time-bound tax holidays and relief to targeted industries and small businesses until September 1, 2020. Anti-COVID measures also included subsidizing food for population and financial support to SMEs. The latter was not implemented in 2020. Tajikistan also was granted a debt relief around USD 50 million under G20 DSSI initiative. These funds were also included to anti-COVID envelope under supplementary budget approved by the Parliament.

 

Despite acknowledging the threat of the pandemic to the country’s economy rather late, the government has now undertaken a range of measures to support the private sector and households. The government continues to implement an Action Plan to reduce the impact of external risks to the national economy. The programme of support has so far focused on providing food security and price stability of staple goods, ensuring timely delivery of social assistance and supporting vulnerable segments of the population. At the same time, the government has also provided a number of non-monetary support to the private sector and households, with a number of tax benefits to SMEs, postponement of non-tax audits of businesses and attracting financial assistance from IFIs. The government has also postponed a number of anticipated changes, such as the increase in utility tariffs, whilst instructing commercial banks to restructure loans and drop penalties for missed payments. 

 

(Updated: May 2022)

 

The authorities have requested disbursement under IMF Rapid Credit Facility instrument. On May 6, 2021， the IMF Executive Board approved a disbursement of US $189.5 million for budget support to help Tajikistan. Discussions with other development partners, including the World Bank and Asian Development Bank are ongoing on financial support to Tajikistan. The authorities are concerned about debt sustainability and are preparing consolidation measures that can be implemented over the medium term.

 

The Government is providing VAT exemptions on essential imports, lump-sum assistance equivalent to minimum wage to vulnerable households and other socially disadvantaged groups. 

 

Health workers are to receive supplemental pay, while tariff increases on electricity, water, and communal services have been postponed until end of 2020. Government is providing free medical care to citizens placed under medical care and COVID-19 patients, as well as sick leave and compensation benefits. 

 

Government is providing grain, seed and fuel to farms to boost food security, and time-bound tax holidays and relief to targeted industries and small businesses until September 1, 2020. 

 

Anti-COVID measures also include financial support to SMEs and subsidizing food for population. 

 

Recently, Tajikistan was granted a debt relief around USD50 million under G20 DSSI initiative. These funds were also included to Anti-COVID envelop under supplementary budget currently being discussed in the Parliament.

 

 (Updated: August 2020)