Ta­jik­istan's econ­omy ex­pe­ri­ences large ex­ter­nal shocks: IMF

The Pak Banker - - COMPANIES/BOSS -

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."

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