I. Introduction

Tajikistan is one of the first member countries of the INOGATE Programme.

Officially it joined the INOGATE Programme on 22 July 1999 during the Kiev INOGATE Summit when the Prime Minister of Tadjik Republic Mr. Iakhio Azimov signed the Umbrella Agreement.

II. Background

Geography and Topology:
Republic of Tadjikistan is located in Central Asia, west of China.

Total area: 143,100 sq km; Afghanistan 1,206 km, China 414 km, Kyrgyzstan 870 km, Uzbekistan 1,161 km.

Capital: Dushanbe

Population: 6,719,567, of which Tajik 64.9%, Uzbek 25%, Russian 3.5% (declining because of emigration), other 6.6%.

Economy: Tajikistan has the lowest per capita GDP among the 15 former Soviet republics. Cotton is the most important crop. Mineral resources, varied but limited in amount, include silver, gold, uranium, and tungsten. Industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly in light industry and food processing. The civil war (1992-97) severely damaged the already weak economic infrastructure and caused a sharp decline in industrial and agricultural production. Even though 80% of its people continue to live in abject poverty, Tajikistan has experienced strong economic growth since 1997. Continued privatization of medium and large state-owned enterprises will further increase productivity. Tajikistan's economic situation, however, remains fragile due to uneven implementation of structural reforms, weak governance, and the external debt burden.

III. Oil

Exploration and Reserves
Tajikistan has proven reserves of 12 million barrels of oil, most of which are located in the northern part of the country in the Leninobod Soghd Region. The national oil company is Tajikneftegaz, which handles oil exploration, drilling, and production.

Production and Consumption
In 2001, Tajik oil production was only 350 barrels per day (b/d). There has been a long period of production decline since Tajikistan produced 1,311 b/d in 1992. This decrease has been attributed to the 1992-1997 civil war, economic troubles, and lack of investment in the oil infrastructure.

Tajikistan consumed approximately 29,000 bbl/d of petroleum products in 2001, of which nearly 100% is imported. Tajikistan consumes 29,000 b/d of oil products, almost all of which are imported. The main source is Uzbekistan, which provides 70% of Tajikistan's oil product imports. An historical summary of petroleum production and consumption in Tajikistan is shown in Table below:

Refineries
In July 2001, Tajikistan brought its first small oil refinery online at Konibodom. The refinery has a capacity of 400 b/d, and produces gasoline, diesel fuel, kerosene, and fuel oil. The production is far too small for the country's needs, however; Tajikistan still imports almost all its oil as refined petroleum products.

IV. Natural Gas

Exploration and Reserves
Tajikistan has 200 billion cubic feet (Bcf) of natural gas reserves, comprised of several fields. In 2000, Tajikistan began operations in the Khoja Sartez field in the southern Khatlon Region, and has also increased its activity in the Qizil Tumshuq deposit in the Kolkhozobod District of the southern Khatlon Region. Tajikistan has also tried to increase its own gas production, in 2000, by exploratory drilling in the Khatlon region. Apparently, some of the drilling has been successful enough to interest China in future drilling activities.

Production and Consumption
The total natural gas production for Tajikistan in 2000 was 1.4 Bcf. With its small domestic production, Tajikistan must rely on imports for 95% of the natural gas it consumes. An historical summary of natural gas production and consumption in Tajikistan is shown in Table.

Tajikistan has had continuing problems in paying for the gas it imports. There is an intergovernmental agreement with Uzbekistan for a fixed annual quantity, but consumption has been running ahead of schedule. An additional problem is that only 18% of the gas consumed in 2001 was paid for by users. As a result of these issues, Tajikistan has had to cut off nonpaying customers and negotiate with suppliers for more gas.

Natural Gas Pipelines
There are natural gas pipelines from Uzbekistan to Dushanbe, and under a barter deal with Uzbekistan, gas is exported from Uzbekistan to Tajikistan in exchange for transit across Tajikistan for a rail transport corridor and a natural gas pipeline.

V. Foreign Investments

Tajikistan is encouraging foreign investment. The IMF has assisted Tajikistan in economic reform and privatization. Privatization programs in Tajikistan have made slow progress. At present 11% of the medium and large enterprises have been privatized. The private sector share of the GDP is 20-30%. During the 1995-96 period, Tajikistan adopted laws on credit insurance, money circulation, the national budget, copyrights, and small business. With the export and import operation in the Republic of Tajikistan are engaged 749 entities of the foreign economic activity officially registered in the Ministry of economy and the foreign economic relations including 515 collective farms and state farms.

The trade economic partners of Tajikistan are 71 countries of the world, from them 10 countries of CIS. Tajikistan's exports in 2001 were estimated to be $640 million. The main exports were aluminum, electricity, cotton, fruits, vegetable oil, and textiles. Most exports went to Uzbekistan, Liechtenstein, Russia, and Kazakhstan. Tajikistan's imports in 2001 were $700 million. The main imports were electricity, petroleum products, aluminum oxide, machinery, equipment, and foodstuffs. Most imports came from the Netherlands, Uzbekistan, Switzerland, and Russia.

VI. Who's Who

Chiefs of State and Cabinet Members:
(Last Updated: 29.01.2003)

VII. Links

Information on the Republic of Tajikistan - tajikistan.tajnet.com/english/economy.htm
Information and Analitycal Centre of EuroAsia - eurasia.org.ru
The President of the Republic of Tajikistan - tajikistan.tajnet.com/english/state/president.htm
The Constitution - www.eurasianet.org/resource/tajikistan/links/tajkethn.html
State Property Committee of the Republic of Tajikistan - www.privatization.tajikistan.com
Internews Tajikistan - www.internews.tj
Tajik service - www.rferl.org/BD/TA
Asia Plus Information Agency - www.asiaplus.tajnet.com
News of Tajikistan - tajikistan.tajnet.com  

VIII. Bibliography