The World Bank‘s Board of Executive Directors approved a $100 million grant from the International Development Association (IDA) on July 1, 2026 to support foundational economic reforms in Tajikistan, targeting the digital, aviation, and energy sectors, according to a press release issued in Washington. The financing aims to open up the economy and generate more and better-paid jobs. It advances the Second Competitive and Inclusive Tajikistan Development Policy Operation, which builds on a first operation approved in August 2025. The program reflects the government’s track record in implementing its reform commitments. It seeks to translate policy changes into tangible economic gains.
The reform program is aligned with Tajikistan’s National Development Strategy 2030. It focuses on improving digital and air transport connectivity, ensuring efficient use of energy, and expanding productive employment. While growth has been robust, Tajikistan remains heavily dependent on remittances and externally financed public investment. This dynamic underscores the need for a stronger and competitive private sector. The operation directly addresses these structural challenges.
In telecommunications, measures to improve spectrum allocation management and strengthen competition are expected to improve sector governance, lower internet costs, and expand access to digital services. In civil aviation, new transparent pricing mechanisms and safety oversight regulatory reforms aim to improve contestability and affordability of airport infrastructure services. The program also supports investor facilitation services, dispute-resolution mechanisms, and improved work permit procedures. To create a more level playing field, the government is reducing preferential state aid and advancing a new Competition Law. Reforms will also strengthen governance and transparency of state-owned enterprises.
“Tajikistan has demonstrated genuine commitment to reforms,” said Gael Raballand, the World Bank Group Country Manager for Tajikistan.
He noted the operation is expected to deliver more affordable internet, enhanced air transport connectivity, a more attractive energy sector, and better-targeted social assistance. In the energy sector, measurable progress on tariff reform and operational efficiency has been made. Improved allocation of funds is intended to foster private investment in renewable energy. The government has also revised its methodology for targeted social assistance to better support vulnerable households.
Together, these reforms are expected to strengthen economic resilience, foster private sector development, and support more inclusive and sustainable growth. The program aims to ensure that returns from the Rogun Hydropower Plant Project benefit poor and vulnerable people. IDA is currently financing 25 projects in Tajikistan, totaling $1.93 billion. IFC maintains an investment portfolio of $69 million, supporting seven private sector clients. The operation reinforces the government’s reform trajectory toward a more open and competitive economy.