IMF mis­sion lauds Ta­jik­istan’s growth

The Pak Banker - - Front Page -

WASH­ING­TON

An In­ter­na­tional Mone­tary Fund (IMF) mis­sion led by Mr. Jonathan Dunn vis­ited Dushanbe Novem­ber 1–Novem­ber 14, 2012. Dis­cus­sions were held on a po­ten­tial new pro­gram that could be sup­ported by the IMF. At the con­clu­sion of the visit, the mis­sion is­sued the fol­low­ing state­ment:

Ta­jik­istan’s eco­nomic re­cov­ery con­tin­ues to take hold. Growth driven by re­mit­tances, in­dus­try, trade, and ser­vices reached 7.5 per­cent through Septem­ber 2012. An­nual in­fla­tion sub­sided to 4.5 per­cent in July but has since picked up to 6.5 per­cent due to ris­ing global food prices, demon­strat­ing one of Ta­jik­istan’s main vul­ner­a­bil­i­ties to ex­ter­nal shocks. Growth in 2013 is pro­jected to re­main ro­bust on the back of strong re­mit­tances.

With re­gard to the mis­sion’s visit, dis­cus­sions with the au­thor­i­ties were pro­duc­tive and there was progress agree­ing on poli­cies and ac­tions for the rest of 2012 and 2013 that could be sup­ported by an IMF pro­gram. Key ar­eas for struc­tural re­forms in­clude im­prov­ing pub­lic fi­nan­cial man­age­ment and strength­en­ing the fi­nan­cial sec­tor, which should help stim­u­late pri­vate sec­tor in­vest­ment and jobcre­at­ing growth. The mis­sion and the gov­ern­ment agreed to continue con­sul­ta­tions and pro­gram dis­cus­sions in the com­ing pe­riod.

The mis­sion agrees with the Na­tional Bank of Ta­jik­istan’s ( NBT) pro­posed stance on mone­tary pol­icy for 2013, which aims at con­tain­ing in­fla­tion to sin­gle dig­its and se­cur­ing macroe­co­nomic sta­bil­ity. The mis­sion wel­comes the con­tin­ued com­mit­ment to greater ex­change rate flex­i­bil­ity to pro­tect Ta­jik­istan’s com­pet­i­tive­ness while sup­port­ing the buildup of in­ter­na­tional re­serves. In this con­text, the mis­sion also wel­comes planned ef­forts to bol­ster in­ter­na­tional re­serves through the con­ver­sion of all gold of the NBT and the Min­istry of Fi­nance into mone­tary gold.

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