$50 mln ADB grant to bolster green jobs, resilient business in Tajikistan

The grant, funded through ADB’s Asian Development Fund (ADF) under subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program, strengthens economic diversification, improves fiscal governance and transparency, accelerates digital transformation, and boosts Tajikistan’s competitiveness in regional and global markets.

“Building on the achievements of subprogram 1 approved last year, subprogram 2 delivers a sequenced and forward-looking package of reforms that are vital for Tajikistan’s long-term growth and resilience,” said ADB Country Director for Tajikistan Ko Sakamoto. “By fostering green entrepreneurship, expanding opportunities for small exporters, accelerating digital transformation, and mobilizing green finance, these reforms strengthen competitiveness and help the government build a more sustainable and resilient economy that benefits all citizens."

Key actions under subprogram 2 include initiating amendments to Tajikistan’s leasing law to assist the leasing sector and expand small and medium-sized enterprises’ (SMEs) access to finance, advancing the development of green taxonomies to guide climate-aligned investments, introducing incentives for subsidized financing for climate-friendly SMEs, and adopting a new law on organic production. Together, these measures support the country’s ongoing transition toward a greener and more sustainable economy.

The program also bolsters governance and enhances transparency by expanding fiscal risk reporting to capture climate-related shocks and by initiating climate budget tagging to more effectively track climate expenditures. It further helps advance digital transformation by improving cybersecurity, introducing fiscal incentives for innovative and technology-related business activities, and establishing an information technology park to promote growth in the digital economy.

The reforms continue to strengthen Tajikistan’s export competitiveness and efforts to attract investment. Key actions include operationalizing support for small exporters—taking steps toward establishing a small exporter facilitation center—and prioritizing climate-friendly and women-led enterprises for export support and market diversification. To further accelerate green development and mobilize sustainable finance, the Ministry of Finance has issued Tajikistan’s first sovereign green bonds.

The program has been implemented in close collaboration with development partners, ensuring effective coordination and leveraging combined expertise and global best practices to boost investor confidence, private sector growth, and business climate.

Tajikistan joined ADB in 1998. The partnership has delivered tangible results to the people of Tajikistan—from upgrading critical transport links such as the Obigarm–Nurobod, Dushanbe–Bokhtar, Ayni–Panjakent, Dushanbe–Tursunzade, and Vose–Khovaling roads—to modernizing key irrigation and water supply systems and building hospitals and schools. ADB has also supported the construction of power transmission lines and electricity substations, the reconnection of the country’s electricity grid to the Central Asian power network, and the rehabilitation of major hydropower plants like Nurek and Golovnaya.

The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During its 2021–2024 period, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

ADB also approved USD17 mln grant to digitalize livestock farming in Tajikistan.