has a fairly open economy, with an export to GDP ratio in
2001 of 61%. The foreign trade regime remains quite free,
in spite of an increase in import duties in early 1999 following
Tajikistan’s entry into a Customs Union. Heavy specialization
on cotton and aluminum production, which accounts fro two
thirds of exports, makes the republic dependent ion world
prices fro these two export items, causing fluctuation in
foreign currency flows. Significant fluctuation of world
for cotton-fiber and aluminum occurred in 2001, created
problems certain problems for producers. Therefore, developing
production of finished goods from local cotton fiber which
is considered to have the quality in the region is one of
independence, Tajikistan has had a current balance of payments
deficit and has accumulated significant debts. The foreign
trade deficit, in effect, replaced subsidies received by
Tajikistan while part of the USSR. Despite its flexible
exchange rate policy since 1996, the current balance of
payment deficit in 1998 reached 9.3% of GDP. In 2000 and
2001 the deficit increased to 6% and &% of GDP respectively,
as the drought affect grain production and raised imports,
and fuel prices increased.
the view to foster trade, the Government took further measures
to liberalized foreign trade regime, as a result of which
foreign trade balance was positive (1.5% of GDP). In overall
trade turnover increased by 8.9% and exceeded $US 1,4 billion.
The CIS countries accounted for 50% in foreign turnover.
In 2002 the main importers of Tajik products were the Netherlands
(29, 5%), Turkey (16.1%), Russia (11.9%), Uzbekistan (9.8%),
Switzerland (9.3%), and Hungary (5.4%). Major export commodities
include aluminum (54.2%) cotton (17.4%) and energy (13.6%).
Major exporters to Tajikistan were mainly from the CIS countries,
namely Uzbekistan (20.6%), Russia (17.7%), Kazakhstan (10.5%),
and Turkmenistan (6.6%). Energy resources accounted for
56.7% of total import to Tajikistan, followed by vehicles,
machinery and equipment (17.8%).
foreign borrowing was viewed as an additional to domestic
saving to fill the gap between savings and investments with
the view to accelerate economic growth. As of January 1,
2003 the country’s foreign debt reached US$ 989.5
million which is 3% less than in 2002. The main multilateral
creditors include the World Bank (19.1% of total foreign
debt). IMF ((.5%) ADB (3.4%), EEC (5.3%), IDB (1.6%), OPEC
(0.6%) and KFAED (0.1%). Among bilateral creditors the largest
is Russia (30.2%) Uzbekistan (10.6%, USA and Turkey (2.0%
each), Pakistan (1.3%) and Kazakhstan (1.2%).
and other donor organizations developed and started implementation
of Country Assistance Strategies and projects aimed at rehabilitation
of social, infrastructure, agriculture and power sector
pursuing an overall objective of macroeconomic stabilization
and introduction of structural reforms designed to ease
and speed up transition to a market economy. General benchmarks
included price and trade liberalization, privatization of
state enterprises, land reform, creation of social safety
nets, as well as legal an institutional reforms.