The Asian Development Bank (ADB) has approved a $50 million grant to support the Government of Tajikistan in implementing structural reforms that promote green jobs, with a special focus on women. The grant, provided through ADB’s Asian Development Fund (ADF) under subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program, aims to strengthen economic diversification, improve fiscal governance and transparency, accelerate digital transformation, and enhance Tajikistan’s competitiveness in both regional and global markets.
ADB Country Director for Tajikistan, Ko Sakamoto, stated that building on the achievements of subprogram 1 approved last year, subprogram 2 provides a forward-looking set of reforms essential for Tajikistan’s long-term growth and resilience. “By fostering green entrepreneurship, expanding opportunities for small exporters, advancing digital transformation, and mobilizing green finance, these reforms strengthen competitiveness and help the government build a more sustainable and resilient economy that benefits all citizens,” he said.
Key actions under subprogram 2 include amendments to Tajikistan’s leasing law to expand access to finance for small and medium-sized enterprises, the development of green taxonomies to guide climate-aligned investments, incentives for subsidized financing of climate-friendly SMEs, and the adoption of a new law on organic production. Together, these measures support the country’s transition toward a greener and more sustainable economy.
The program also strengthens governance and transparency by expanding fiscal risk reporting to include climate-related shocks and introducing climate budget tagging to track climate-related expenditures more effectively. It promotes digital transformation through improved cybersecurity measures, fiscal incentives for innovative and technology-based business activities, and the establishment of an information technology park to encourage growth in the digital economy.
Subprogram 2 further enhances Tajikistan’s export competitiveness and investment appeal. Key initiatives include support for small exporters, steps toward establishing a small exporter facilitation center, and prioritization of climate-friendly and women-led enterprises for export promotion and market diversification. To accelerate green development and mobilize sustainable finance, the Ministry of Finance has also issued Tajikistan’s first sovereign green bonds. The program is being implemented in close coordination with development partners, leveraging their expertise and global best practices to boost investor confidence, promote private sector growth, and improve the overall business climate.
Since joining ADB in 1998, Tajikistan has benefited from a range of projects including upgrades to major transport links such as the Obigarm–Nurobod, Dushanbe–Bokhtar, Ayni–Panjakent, Dushanbe–Tursunzade, and Vose–Khovaling roads, modernization of key irrigation and water supply systems, and construction of hospitals and schools. ADB has also supported power infrastructure projects including transmission lines, electricity substations, reconnection to the Central Asian power network, and rehabilitation of major hydropower plants such as Nurek and Golovnaya.
The Asian Development Fund provides grants to the poorest and most vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund helped approximately 384,000 people emerge from poverty and created around 500,000 jobs. ADB, founded in 1966 and owned by 69 members—50 from the region—is a leading multilateral development bank that supports inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners, ADB uses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the environment.
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