WASHINGTON, August 7, 2025 - The World Bank's Board of Executive Directors today approved the First Competitive and Inclusive Tajikistan Development Policy Operation (DPO) to support the country's reform programs aimed at further opening the economy to competition, creating favorable market conditions for private sector development, and strengthening the public sector for better service delivery.
The DPO is a $50 million grant from the International Development Association (IDA), the World Bank's fund for low-income countries. It supports the reform priorities outlined in the Tajikistan National Development Strategy 2030, and its primary objective is to support crucial government policies for a more competitive and equitable economy.
"We are proud to support these ambitious reforms designed to unlock the country's economic potential and deliver tangible benefits to Tajik citizens," said Wei Winnie Wang, Acting Country Manager for the World Bank Group in Tajikistan. "Fostering a more competitive and open market environment helps create new opportunities for businesses and consumers alike. These reforms are vital steps toward building a more dynamic, inclusive, and resilient economy in Tajikistan."
The DPO aims to help implement several foundational economic reforms, including boosting competition and improving governance in the telecommunications/digital sector, facilitating air transport connectivity and competition in the civil aviation sector, strengthening the legal framework for foreign investment, supporting greater transparency of subsidies to private investors, and improving transparency in the allocation of funds within the power sector, thereby enabling a conducive environment for private investment in renewable energy.
The DPO also seeks to strengthen the policy, legal, and financial frameworks necessary for the prioritization, transparency, and sustainable functioning of a national Benefit Sharing Program (BSP) set up under the Rogun Hydropower Plant (HPP) Project. The BSP will use part of the revenues from the sale of electricity generated by the Rogun HPP to support poor and vulnerable households and communities, building on and strengthening existing safety net programs.
Development Policy Operations are a category of financing instruments used by the World Bank to support countries' policy- and institutional reforms to help them achieve sustainable growth and poverty reduction. The last DPO financed by the World Bank in Tajikistan was approved in 2023.
The World Bank is currently financing 26 projects in Tajikistan, totaling $1.9 billion comprised of IDA grants and highly concessional credits. The World Bank is committed to continuing its support as the country strives to improve lives and meet the aspirations of its young and growing population.
