Tajikistan Business

By | March 3, 2021

According to commit4fitness, Tajikistan is a landlocked country located in Central Asia and its economy is largely dependent on agriculture, hydroelectric power and remittances from Tajik migrants working abroad. Agriculture accounts for around one-third of GDP and employs around two-thirds of the population. The main crops are cotton, wheat, fruits and vegetables. The hydroelectric sector is also an important contributor to GDP growth, with hydropower providing the majority of electricity in the country. Remittances from Tajik migrants working abroad are also a major source of income for many families in the country. Other industries include mining, textiles and services such as banking and telecommunications.

According to abbreviationfinder, TJ is the 2 letter abbreviation for the country of Tajikistan.  The economy of the Tajikistan is still predominantly agricultural, despite the small extent of arable land (7% of the land area, mostly mountainous and inaccessible). In 1991 agriculture provided about 44% of the gross domestic product and employed 45% of the labor force. The most important agricultural resource is cotton (256,000 t of fiber in 1990, but 109,000 in 1992), followed in order of importance by wheat (200,000 t in 1992), horticultural products and fruit. In 1990 the industrial sector contributed 43.5% to GDP and ensured 20.4% of employment. But between 1990 and 1993 the volume of industrial production underwent a drastic reduction (40%) due to the upheavals caused by the civil war which, according to government estimates – certainly underestimated – they would have caused 20,000 deaths and 600,000 refugees. Tajikistan has modest fossil energy resources (in 1990: coal, 500,000 t; oil, 200,000 t; natural gas, 300 million m3), but it can count on hydroelectric energy produced by exploiting the potential of its mountain watercourses, in quantities capable of satisfying about 75% of internal demand, before the civil war. Overall, internal energy resources do not allow self-sufficiency, and Tajikistan, which in the past relied on imports of hydrocarbons from the USSR, has found itself in great difficulty in recent years, as it can no longer count on the continuity of supplies. Other mineral products include gold (705 kg in 1992; 305 in 1993), aluminum, lead, mercury and tin ores. The manufacturing industry is mainly devoted to the production of foodstuffs, textiles and carpets.

Tajikistan is considered to be the poorest of the former Soviet republics in Central Asia. The disintegration of the Soviet Union with the demise of former markets and trade routes as well as civil war has further deteriorated the country’s economy. From 1985–95 GDP per capita fell by over 10% annually, but since the turn of the millennium, growth has accelerated.

Gross Domestic Product (GDP) of Tajikistan

Although only 6% of the country’s land is arable land, Tajikistan’s economy is mainly agricultural. In 2008, agriculture (including forestry) contributed 23.8% of GDP and employed 67.2% of the working population. Industry (including mining) contributed so. with 30% of GDP and 7.5% of employment. About. 800,000 Tajiks are believed to have permanent or seasonal work in former Soviet republics.

According to countryaah, Tajikistan’s most important natural resource is rivers and waterfalls. New hydropower plants have enabled the export of electricity. One of the world’s largest dam plants, Nurek, is located near Dushanbe. Hydropower has created the basis for the establishment of the country’s considerable aluminum industry. Hydropower represents most of the country’s electricity generation. Construction of two of the country’s largest hydropower plants, aimed at exporting to Russia and Iran, was initiated in 2006, along with a 700 km long transmission line to Pakistan.

The implementation of economic reforms has been slow The corruption is widespread. The privatization of major state enterprises has just begun. However, thousands of small businesses, especially in commerce and services, have been established with private owners. In order to attract foreign investment capital, restrictions on operations for foreign banks were lifted in 2005.


The privatization of state and collective use occurred gradually after independence. Cotton is the most important crop, and a considerable part of the cultivation is still carried out on collective use. Cotton production makes the country highly dependent on artificial irrigation, especially from the Amu-Darja and Syr-Darja rivers. Extensive consumption of artificial fertilizers and insecticides has caused major environmental pollution and caused health damage to the population. In addition to cotton, wheat, tobacco, potatoes and vegetables, citrus fruits, figs and sugar cane are grown. Livestock breeding is based on karakulsau, goat and cattle. Tajikistan is self-sufficient with animal products.

Mining, energy and industry

Tajikistan has rich mineral deposits. There are deposits of uranium, coal, antimony, silver, aluminum, iron, lead, tungsten, bismuth, mercury, tin and petroleum. The mountainous landscape prevents the efficient utilization of mineral deposits. 95 percent of the electrical energy produced comes from hydropower. Otherwise, Tajikistan is dependent on importing petroleum.

Traditionally, the industry has been dominated by a few large, state-owned enterprises and many small businesses. It is produced i.e. aluminum, power equipment, cables, metal products, fertilizers. The light industry is dominated by the textile industry, with large production of cotton, silk, knitwear and clothing. Otherwise, footwear, food, carpets and perfume oils are produced.

Foreign Trade

Aluminum is the main export commodity, in addition to electricity and cotton. Tajikistan is dependent on oil and gas imports. Other machinery and equipment for aluminum production, foodstuffs and consumables are also imported. Before independence, most of the country’s trade with the other Soviet Union took place. Later, Tajikistan has focused on other countries, and its main trading partners in 2008 were China, Russia, Turkey and Norway.

Transport and Communications

The mountainous landscape makes it difficult to develop a good communication network. The road network is relatively well developed, but some areas are impassable during periods of the year. Tajikistan is linked to the Uzbek and Turkmen railway network both from Khodsjent in the Fergana basin and from Dushanbe. Dushanbe has an international airport. Otherwise, domestic airports are relatively well developed, but several of them are exposed.