IMF mission lauds Tajikistan’s growth
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.