Given the devastation of the pandemic, the bank’s increased grants plans for Tajikistan are critical. But will it be enough?
According to a press release from the ADB, the “2021–2023 plan includes projects to improve food security and water resource management, and develop urban infrastructure and the energy sector.” Projects are also planned to develop the “health sector, improving the financial sector, developing tourism, enhancing disaster resilience, and further improving the road sector.”
In the 2020-2022 plan, the ADB stated that Tajikistan was eligible for Asian Development Fund grants only due to “high risk of debt distress.” The plan stated that the grant allocation for commitment for 2020-2022 was “$278.38 million, including $15.00 million from disaster risk reduction resources.”
As of June, the ADB forecast Tajikistan’s GDP to contract by 3.6 percent in 2020, while foreseeing a rebound to a 7 percent growth rate in 2021. Inflation, another key indicator, is at present forecasted to hit 10 percent in 2020 and come down to 8.5 percent in 2021.
On the economic front, for Tajikistan it’s concerning that a recent U.N. report noted that cash transfer companies reported a 36 percent decline in remittances from Russia to Tajikistan in the first quarter of 2020 compared to last year.
At the same time, the report pointed out, “transfers from Tajikistan to Russia increased by 47 percent, possibly as a result of financial support from families to migrants who are currently in Russia without a job.” Tajikistan, one of the world’s most remittance-dependent economies, is currently sending more and more cash to Tajiks in Russia.
This article was written by Catherine Putz
To read the full article, please click on the following link: https://thediplomat.com/2020/08/adb-plans-323-million-in-grants-for-tajikistan-in-2021-2023/?ocid=uxbndlbing
1588.873 SRY