The Asian Development Bank (ADB) has approved a $50 million grant to help the Government of Tajikistan implement a new phase of structural reforms aimed at expanding green jobs and strengthening economic resilience, with a particular focus on supporting women.
The funding is provided through the Asian Development Fund under subprogram 2 of the Enabling Climate-Responsive Business Environment Improvement Program. According to ADB, the latest phase is designed to advance economic diversification, improve fiscal governance and transparency, accelerate digital transformation, and enhance Tajikistan’s competitiveness in both regional and international 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.”
Subprogram 2 introduces several policy actions, including proposed amendments to Tajikistan’s leasing law intended to support the leasing sector and improve access to finance for small and medium-sized enterprises (SMEs). It also advances work on developing green taxonomies to guide climate-aligned investment decisions, creates incentives for subsidized financing targeted at climate-friendly SMEs, and brings in a new law on organic production. Collectively, these reforms aim to help the country shift further towards sustainability.
Governance measures in the program involve expanding fiscal risk reporting to reflect climate-related shocks and initiating climate budget tagging to track climate expenditures more efficiently. Digitalisation efforts are also featured, with steps to improve cybersecurity, offer fiscal incentives for technology-focused businesses, and establish an information technology park to stimulate growth in the digital sector.
To enhance export readiness and investment appeal, the reforms support small exporters through steps toward creating a facilitation centre, while prioritising climate-friendly and women-led enterprises for export assistance and new market opportunities. Tajikistan’s Ministry of Finance has also issued the country’s first sovereign green bonds as part of wider efforts to mobilise sustainable finance.
The initiative is being carried out in coordination with development partners, combining expertise to strengthen investor confidence and support private sector growth. Since joining ADB in 1998, Tajikistan has benefitted from extensive cooperation spanning transport projects, energy infrastructure, irrigation systems, water supply upgrades, and public services including schools and hospitals.
The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific, supporting 384,000 people to move out of poverty and creating around 500,000 jobs during 2021–2024. ADB, founded in 1966 and owned by 69 members, remains a major development institution promoting sustainable growth across the region.
