Asia Plus: Tajikistan focuses on export of finished products

Tajikistan is preparing a five-year export improvement programme to reduce the country's dependence on natural materials and increase sales of finished products and services. Authorities are counting on increased exports, fresh jobs and greater investor interest.

The Tajikistani authorities plan to simplify export rules, support companies and guarantee that the country sells not only natural materials but besides finished products abroad. The programme is planned for 5 years and aims to increase exports, make jobs and attract investment.

Previously, under the 2021-2025 programme, the country implemented the ‘One Window’ system, transforming any services into electronic form. During this period, exports increased from $1.4 billion in 2020 to $1.9 billion in 2024.

The fresh programme envisages a change in Tajikistan's approach to exports. Currently, the country sells mainly natural materials – cotton, aluminium and ore – which makes the economy subject to fluctuations in planet prices.

The authorities want to increase their share of the export structure of finished products and services. This means developing the processing of natural materials in the country, producing clothing, food, building materials and electrical equipment, and then selling them on abroad markets.

A strong emphasis is besides placed on the green economy, namely the usage of clean energy and environmentally friendly technologies. This is peculiarly crucial due to the fact that request for specified products is increasing in Europe, the mediate East and Asia.

The programme provides for 2 scenarios, depending on government and business activity.

The first script assumes a gradual increase in exports without sharp changes. By 2030, exports of goods could increase to $2.8 billion and exports of services to $600 million. However, the country would stay mostly dependent on natural materials and imports would proceed to exceed exports. This option is considered cautious.

A more ambitious script involves active reforms, including the improvement of logistics, digital services, green technologies and support for national brands. In this case, exports could increase to $4.5-4.8 billion and the share of finished products would increase significantly. The economy would become more resilient and dependence on imports would decrease.

One of the key objectives of the programme is to support companies in abroad expansion. Training and workshops on the sale of goods abroad, preparation of documentation, cooperation with abroad partners and compliance with the regulatory requirements of another countries are planned.

Exporters will besides be able to benefit from consultations on customs regulations and quality standards to aid avoid errors and unnecessary costs.

The government plans to extend financial support to exporters, including preferential loans, grants, hazard insurance and assistance in entering fresh markets.

Particular emphasis will be placed on sectors with the top economical potential: agricultural processing, textiles and clothing, metalworking, energy, green technologies and services specified as tourism, IT, transport, education and healthcare.

Complex administrative procedures frequently impede exports. The programme so provides for further simplification, the improvement of the ‘One Window’ system, the extension of electronic paper circulation and the acceleration of customs procedures.

For reliable companies it is planned to introduce "green corridors" that will let faster transport of goods across the border. A large deal of attention was besides given to e-commerce, i.e. the sale of Tajik products through global online platforms.

In order to increase the profitability of exports, the authorities intend to make export clusters combining producers, processors, logistics and service companies.

Such clusters are to be developed, among others, in the textile industry, agricultural processing, IT and tourism, taking into account the circumstantial characteristics of individual regions. In parallel, logistics improvement is planned: the construction of agrologistics centres, modernisation of border crossing points and improvement of transport infrastructure, which should reduce costs and reduce transportation times.

Tajikistan has crucial assets specified as inexpensive electricity, favourable climate conditions for agriculture, a increasing service sector and favourable regional location.

At the same time, the country faces challenges specified as dependence on natural materials, advanced logistics costs, outdated method infrastructure and low designation of Tajik brands abroad.

Opportunities for improvement are linked to increasing request for organic products and the improvement of online trade. Threats include global price fluctuations, climate change and global economical instability.

Source: Asia Plus

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