International Monetary Fund gives $20m to Tajikistan
DUSHANBE: The Executive Board of the International Monetary Fund (IMF) said it has completed its third review of Tajikistan's economic performance under a programme supported by the Extended Credit Facility arrangement (ECF). "The Board's decision was taken on a lapse of time basis. The decision enables the authorities to draw an additional SDR 13.045 million ($20.11 million), bringing total disbursements under the arrangement to an amount equivalent to SDR 65.265 million ($100.59 million)," the IMF said in a press release.
Tajikistan has joined many other Central Asian countries on the path to economic recovery. An improving external environment, an upswing in inward remittances, and favourable climatic conditions (leading to an increase in hydroelectricity production) helped Tajikistan recover from the slowdown of 2009. Inflation has been low for most of the year, and although now rising, is expected to remain in single digits in 2010. Barring new shocks, the recovery should continue to take root in the remaining months of 2010 and into 2011.
"Despite a notable shock to VAT on imports, the government was able to boost domestic tax revenue and limit the shortfall in overall tax collections. Social spending through June fell short of expectations, however, and addressing this shortfall should be a priority for the remainder of the year given the high incidence of poverty and pressing social needs," it said. "The overall fiscal deficit target for 2011 (at one per cent of GDP) is appropriate, given pressing social and infrastructure needs. Over the medium term, the fiscal accounts (excluding the foreign-financed public investment programme) will need to be broadly in balance to preserve fiscal and debt sustainability, as well as ease pressures on the balance of payments. -PB News