DUSHANBE, Tajikistan, March 11. The International Monetary Fund (IMF) has greenlit a twenty-two-month Policy Coordination Instrument (PCI) for Tajikistan, aimed at bolstering the country's economic policies and implementing crucial structural reforms, Trend reports.
According to the IMF, Tajikistan's authorities sought approval for the program to solidify economic strategies and enact vital structural changes. The PCI's primary goals include upholding macroeconomic stability, reinforcing policy frameworks, and fostering sustainable, inclusive growth, with regular program reviews set on a semi-annual basis.
Although the PCI does not involve the use of IMF resources, successful program execution would signal Tajikistan's dedication to robust economic and structural policies, attracting financing for priority social and infrastructure projects from development partners and private investors.
Under the program, Tajikistan's reform focus will be on three main pillars: enhancing revenue generation, improving fiscal resilience, and ensuring debt sustainability; modernizing monetary, exchange rate, and financial sector policies for enhanced growth and resilience; and advancing structural reforms to promote inclusive growth through better social assistance targeting, strengthened governance, and anti-corruption measures.
"The program, supported by capacity development, sends a strong signal of the authorities' commitment to sound policies and reforms and would help catalyze additional support by development partners," Antoinette Sayeh, Deputy Managing Director, remarked.
The IMF noted that despite global uncertainties, Tajikistan's post-pandemic economic performance in 2023 demonstrated robust growth and minimal inflation. The fiscal deficit stayed within the medium-term target, leading to a decline in the public debt-to-GDP ratio. The outlook for 2024 remains positive, albeit with lingering external environmental uncertainties.