Tajikistan's economy experiences large external shocks: IMF
An International Monetary Fund (IMF) staff mission, led by Mr. Paul Ross, visited Tajikistan from February 1 to 10, 2016 to discuss macroeconomic policies and the structural reform agenda. At the conclusion of the mission, Mr. Ross said the Tajikistan authorities and the IMF staff team held constructive discussions on Tajikistan's recent economic performance, the impact of external shocks, the authorities' macroeconomic policy framework, and reform plans. The authorities have indicated their desire to move with energy and determination to address the challenges the economy faces and IMF staff is supporting their efforts.
"Over the past eighteen months, Tajikistan's economy, like several others in the region, has experienced large external shocks. These shocks have resulted in a decline in the U.S. dollar value of migrants' remittances, lower export earnings, and exchange rate depreciation. They have reduced imports and consumption, and affected banks' financial positions. Economic performance was affected accordingly. While exchange rate flexibility has alleviated some pressures, Tajikistan's economy continues to adjust to lower migrants' remittances and export earnings, against the backdrop of returning migrant workers.
The IMF said authorities are resolved to maintain macroeconomic stability and promote economic growth, job creation, and higher living standards for the entire population. IMF staff welcomes the authorities' determination and supports their objectives, particularly in the face of an economic outlook in 2016 that is substantially worse than previously anticipated. To this end, the authorities and the IMF staff discussed economic policies to manage the impact of external shocks, to maintain macroeconomic stability, and to achieve sustainable and inclusive growth over the medium term. The IMF stands ready to assist the authorities' economic and reform program, including by considering financial assistance provided the authorities take early and substantial policy actions.
"During the visit, the team met with Prime Minister Rasulzoda, First Deputy Prime Minister Said, and National Bank of Tajikistan Governor Nurmahmadzoda, and other senior officials. IMF staff will continue its close cooperation with Tajikistan and support the efforts of the government and the National Bank of Tajikistan to promote macroeconomic stability and growth. The IMF will also continue providing technical assistance to continue to build the capacity of Tajikistan's economic institutions."