The World Bank has approved a $50 million grant to support Tajikistan’s efforts to increase private sector growth and improve public sector efficiency. The funding, known as the First Competitive and Inclusive Tajikistan Development Policy Operation (DPO), was endorsed by the World Bank’s Board of Executive Directors on August 7, 2025.
This grant comes from the International Development Association (IDA), which is the branch of the World Bank that provides assistance to low-income countries. The initiative aligns with Tajikistan’s National Development Strategy 2030, aiming to back government policies that foster 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 will focus on several areas of reform. These include enhancing competition and governance in telecommunications and digital sectors, improving air transport connectivity within civil aviation, strengthening legal protections for foreign investors, increasing transparency regarding subsidies for private investors, and clarifying how funds are allocated within the power sector. This is intended to encourage private investment in renewable energy.
Another key component involves supporting frameworks needed for a national Benefit Sharing Program under the Rogun Hydropower Plant Project. Revenues from electricity sales generated by Rogun HPP will be directed towards poor households and communities through this program.
Development Policy Operations like this one are financial tools used by the World Bank to help countries implement policy changes aimed at sustainable growth and poverty reduction. The previous DPO for Tajikistan was approved in 2023.
Currently, there are 26 active projects funded by the World Bank in Tajikistan, with total commitments reaching $1.9 billion through IDA grants and concessional credits.
“We are committed to continuing our support as Tajikistan strives to improve lives and meet the aspirations of its young and growing population,” according to statements from the organization.