PRESS REVIEW International Finance Corporation

Friday, 16 September 2011

In this issue:

Feature News……………………………………………………………………………………..

"Implementation of the national strategy has resulted to improve socio-economic situation of the country" - said the Head of State … ………………………………………………………...2 will successfully cope with effects of global financial crisis, says ADB official……..2 Tajik President: "The GDP in 1997 increased by 58 times"…………………………………….3 Tajikistan's foreign trade exceeded $ 2.9 billion …………………………………………………3

Other News

The Tajik Government will consider a draft budget for 2012 …….………………….……....…3 Roghun’s temporarily surplus funds to be kept in banks until feb 2012………………………..3 Cooperation in the field of intellectual property………………………………………………….4 Gasoline smuggling may lead to toughening control on Kyrgyz-Tajik border…………………5 FEZs’ development potential discussed in Gairoqqum…………………………………………..5 Inflation for Jan-Aug 2011 estimated at 8.5%...... 6 Tajik national air companies launch new regular air routes to ………………..………..6

News in Brief

Tajik FM receives U.S. Ambassador and new Head of UNICEF CO in Tajikistan……………6 Tajikistan improves by 11 positions in global competitiveness rankings……………………….6 Tajikistan entrepreneurs are invited to the exhibition "Expo Pakistan"………………………6 Large cement plant to be built in Southern Tajikistan…………………………………………. 7 Powerful transformer substation introduced into operation in Kulob………………………….7 launches new air route to Russia………………………………………………………8 Over 110,000 tons of coal produced in Tajikistan in Jan-Aug 2011………………………….….8 M.Davlatov: "82 items of medicines sold in pharmacies in the Republic - false"……………....8 Official rates of exchange of currencies as of 9 September, 2011……………………………….8

Sources: News Packages: Asia Plus Blitz, Khovar, BBC Monitoring Global Newsline Central Asia, Newspapers: Asia Plus, Business i Politika, Vecherniy , Tojikiston, Farazh, Nigoh, Charkhi Gardun, Narodnaya Gazeta, AiF Tajikistan, Jumhuriyat, Najot, Imruz News, Sadoi Mardum Web sources: www.asiaplus.tj , www.avesta.tj , www.varorud.tj , www.ozodi.org , www.pressa.tj , www.khovar.tj , www.president.tj , www.mfa.tj , www.iwpr.net , www.ca-news.org, www.dw-world.de , www.rferl.org , www.tojnews.tj

______Inclusion of news items into this review does not imply endorsement of the content by the IFC

Feature News

"IMPLEMENTATION OF THE NATIONAL STRATEGY HAS RESULTED TO IMPROVE SOCIO-ECONOMIC SITUATION OF THE COUNTRY" - SAID THE HEAD OF STATE

DUSHANBE, September 12- The implementation of the National Development Strategy has provided economic stability, significantly reduced the level of poverty in the country. In recent years it has declined by 30 percent, improved socio-economic situation for more than two million people in the country, "- said in his speech on the occasion of the anniversary of State Independence of Tajikistan President E.Rahmon. According to him, over the past 13 years, state budget revenues of 110 million Somoni in 1997 reached for 8.3 billion somoni, that figure is 75 times more than in 1997. Despite this, I want to emphasize that all these figures are not yet able to satisfy us. During this period, the Government prepared and adopted a series of public investment programs, which gave priority to energy, transport, communications, education, health and agriculture. Now in various sectors of national economy more than $ 8.2 billion to implement investment projects TJS. In general, over the past ten years are realized more than 150 investment projects worth over 12 billion somoni and 200 projects to attract foreign direct investment. These projects are primarily aimed at improving the socio-economic status of cities and regions through the construction and reconstruction of public facilities and infrastructure.

Source: www.khovar.tj , NIAT "Khovar", "Ch.Ehrlich, Original in Russian

TAJIKISTAN WILL SUCCESSFULLY COPE WITH EFFECTS OF GLOBAL FINANCIAL CRISIS, SAYS ADB OFFICIAL

DUSHANBE, September 15, 2011, Asia-Plus – Tajikistan will successfully cope wit the effects of the global financial crisis and the gross domestic product (GDP) growth is evidence of that. The Asian Development Bank Executive Director Ashok Kumar Lahiri remarked this following his meeting with President Emomali Rahmon. Mr. Ashok Kumar Lahiri noted that the purpose of the visit was for him to get acquainted with the process of implementation of reforms in Tajikistan and the country’s economic situation. According to him, they discussed priorities of further cooperation between the institution and Tajikistan as well as the process of implementation of energy, agriculture and infrastructure development projects in Tajikistan. The Asian Development Bank will continue close work with the government and partners for development to expand regional cooperation in the framework of Central Asia Regional Economic Cooperation (CAREC) program, the ADB official noted. ADB began operations in Tajikistan in 1998 and has enjoyed a stable partnership during the past 12 years. ADB's main task was to channel financial and technical resources to help the country improve the overall economic situation, reduce poverty, and rehabilitate infrastructure. To-date, the Asian Development Bank has approved a total assistance of over 800 million U.S. dollars in concessional loans, grants and technical assistance to Tajikistan. A total cost of ongoing projects financed by the ADB is some 280 million U.S. dollars. They are aimed at promoting development of trade and enhancing energy, transportation and agrarian sectors in the country.

Source: www.new.tj , Asia plus news agency , Original in English

2 TAJIK PRESIDENT: "THE GDP IN 1997 INCREASED BY 58 TIMES"

DUSHANBE, September 12., NIAT "Khovar"-"Over the years of independence a deep socio- economic reforms have been developed and strategic public policy objectives have been identified to ensure energy independence and food security and the country out of isolation communication. To achieve these goals, Government is committed to gradually solve the problem of sustainable economic development, improve governance towards progress and real economy, as well as strengthen the country's export potential, improvement of investment climate, business support, social security, improve market position Labor and human development "- said in his speech on the occasion of the 20th anniversary of Independence Day in Tajikistan President E.Rahmon. As a result of socio-economic programs favorable atmosphere for the continuation of the reform process has appeared and the balanced development of national economy, the steady implementation of measures adopted by the Government aimed at improving the living standards of people. On this basis, GDP in 1997 to the present day at current prices increased by 58 times and this year will be approximately 30 billion Somoni that almost attain to the level in 4000 Somoni per capita of the country, and its average annual growth of over 7%. If the total budget per capita of the population in 1997 was just 19.8 TJS, then in 2011 it was in 1060 Somoni. It should be noted that GDP per capita in comparison with 1997 increased by 43 times, increasing and other important indicators of socio - economic development - the state budget revenues per capita of the country since 1998, gradually increasing in the current year increased by almost 58 times. The main objective of the policy of the state budget expenditure, above all, a comprehensive support for the development of social spheres, as well as an increase in wages and pensions of the population and thereby increase the level and quality of life of people in the country. Thus, the average wages per employee in the country this year compared with 1997 increased by 89 times and now is 440 Somoni, and the average pension increased by 118 times.

Source: www.khovar.tj , NIAT "Khovar", "Ch.Ehrlich, Original in Russian

TAJIKISTAN'S FOREIGN TRADE EXCEEDED $ 2.9 BILLION

DUSHANBE, 15.09.2011 , Foreign trade turnover of Tajikistan in January-August 2011 in total amounted $ 2 billion and 901.1 millions, which is 26% more than in the same period in 2010, or $ 599.2 million. According to the Statistics Agency of the Republic's trade balance was negative and more than $ 1.2 billion in the foreign relations of Tajikistan had 91 countries worldwide, including 10 CIS countries and 81 foreign countries. The foreign trade with the CIS countries accounts for 44,6%, or more than $1.2 billion, with non CIS countries 55,4%, or more than $ 1,6 billion trade. Deficit in CIS countries amounted to more than $ 1 billion, with other countries $ 141.9 million. Over the past period, exports of goods were in total $ 847.9 million, while imports were more - $ 2 billion Major trading partners of RT in the foreign trade are EurAsEC member states - Russia, $ 665.6 million, $ 277.3 -million, Belarus - $ 49.2 million from foreign countries - China - $ 466.9 million, Turkey-$ 391 8 million, and - $ 132.5 million

Source: www.avesta.tj, Original in Russian

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THE TAJIK GOVERNMENT WILL CONSIDER A DRAFT BUDGET FOR 2012

3 Dushanbe, 15.09.2011 - Ministry of Finance of Tajikistan handed over for study to the Government draft budget for 2012, as "Avesta" reports. According the the source from the Ministry of Finance the state budget for 2012 has been proposed by the Government of the Republic after the consultation with the ministries and government agencies. "The main financial document of the country for the next year will be considered at the permanent state commission on the budget under the Government of the Republic until the end of September this year. Once the project is approved by the Government, it will be forwarded for consideration to the Majlisi Namoyandagon (Lower Chamber of Parliament), "- said the source. According to him, in view of the external debt service, raising salaries to state employees and other expenses, the total size of the state budget in 2012 will exceed the 2011 budget (8.3 billion TJS) to 1.6 billion somoni, and will be about 10 million TJS (more than $ 2.2 billion at current exchange rate). "Under the state budget for next year, real GDP growth in 2012 is provided at 7%. Nominal GDP growth is provided by 16.3% more than in the current year, and $ 35 billion 800 million Somoni (about $ 8 billion), "- said the source. According to him, in the main financial document of next year inflation is projected at 10.5% and the rate of national currency against the U.S. dollar, 4 TJS 92 dirams, ie 4.92 Somoni - $ 1. IMF predicts somoni dollar $1-5,3. The Ministry of Finance also noted that the budget for next year will have socio-economic orientation. "The social sector will dominate along with the priorities of the national economy such as energy, transport communications, and food security", - concluded the source.

Source : www.aveste.tj , Avesta News Agency, Original in Russian

ROGHUN’S TEMPORARILY SURPLUS FUNDS TO BE KEPT IN BANKS UNTIL FEB 2012

DUSHANBE, September 14, 2011, Asia-Plus -- The supervisory board of open joint-stock company (OJSC) NBO Roghun has partially complied with request of commercial banks, having extended the money return period by six months, First Deputy Finance Minister, Jamoliddin Nouraliyev, told Asia-Plus Wednesday afternoon. According to him, the money return period expired on August 16 this year and commercial banks keeping temporarily surplus funds raised from the sale of shares in OJSC NBO Roghun have asked to extend the money return period for one more year, but the supervisory board has agreed to extend it only for six months. It should be recalled that five commercial banks were selected in August 2010 for placement of Roghun’s temporarily surplus funds -- Agroinvestbonk, Tojik Sodirot Bonk (TSB), Bonki Rushdi Tojikiston (Tajikistan Development Bank or TDB), Tajprombank, and Fononbank. 118.2 million somoni were placed at Agroinvestbonk, 20.3 million somoni at TSB, 2.8 million somoni at TDB, 11.1 million somoni at Tajprombank, and 5 million somoni at Fononbank. Interest rate on these deposit accounts is floating. The interest rate includes refinancing rate plus one percent; today it is 9%+1%=10%. Nouraliyev added that another 80 million somoni were placed this year at three banks. “30 million somoni were placed at Agroinvestbonk, 30 million somoni at Tojik Sodirot Bonk and 20 million at Amonatbonk (Tajikistan’s savings bank),” he said.

Source: www.news.tj , Asia-Plus Agency, Original in Russian

COOPERATION IN THE FIELD OF INTELLECTUAL PROPERTY

DUSHANBE, September 14. -Chairman of Commerce Chamber of the RT Sharif Said met with Alfred Radauer - representative of the Austrian innovation center "Techno polis", the project 4 partners «CASIP SMEs» - «Service to protect intellectual property (IP) provided by small businesses to support innovation and the market" in Dushanbe, on September 12. The purpose of his arrival is to determine what services can provide the implementation of the project in Tajikistan to address IP issues for small businesses, and also to determine the local organization to be involved in setting up this project. He noted that the major theme is the promotion of trade marks. This allows for the development of small businesses. This is a training business - training, seminars on foreign trade, best practices for working FEZ, etc. The chairman of the chamber proposed to organize a business meeting with representatives of small and medium-sized businesses, who themselves will be able to talk about their problems. Later, having defined a theme, it will be possible to hold a large seminar, inviting European experts in the field of IP. Sharif Said gave the visitor CD-ROM with extensive information about the economy, law, enterprises of Tajikistan. The parties agreed on further cooperation and organization of trainings and seminars, reported the press center of the CCI RT.

Source: www.news.tj , Asia-Plus,, Original in Russian

GASOLINE SMUGGLING MAY LEAD TO TOUGHENING CONTROL ON KYRGYZ- TAJIK BORDER

DUSHANBE, September 14, 2011, The head of ’s government Almazbek Atambayev considers that it is necessary to tighten control on the Kyrgyz-Tajik border in connection with cases of smuggling of fuels into Tajikistan, KazTAG reports. Since the beginning of this year, Kyrgyzstan’s National Security Service has reportedly warded off nine attempts of smuggling gasoline into Tajikistan. Gasoline has been smuggled into Tajikistan via Batken region. Five criminal proceedings have been instituted over fuel smuggling. The overall volume of the detained fuels is reportedly 461,000 liters for a total amount of 154.270 million som (equivalent to 3.4 illion U.S. dollars). We will recall that Radio Liberty’s Kyrgyz Service reported n early September that two Kyrgyz officials have been detained on suspicion of involvement in the illegal export of gasoline to Tajikistan. Kalybek Satybaldiyev, the chief of the Kyrgyz Interior Ministry's Counter-Organized Crime Directorate, told RFE/RL on September 2 that Ulan Babayev of the Finance Police and Nuradil Toktosunov of the Tax Service were arrested in late August. Satybaldiyev said the two officials abused their official positions and forged documentation to enable criminal groups to steal gasoline and export it to Tajikistan.

Source : www.Asia-Plus.tj, Original in Russian

FEZS’ DEVELOPMENT POTENTIAL DISCUSSED IN QAIROQQUM

DUSHANBE, September 13, 2011, Asia-Plus -- An international three-day economic forum entitled “Free Economic Zones of Tajikistan: Potential of Development” has opened in the northern city of Qairoqqum today. Organized by the Ministry of Economic Development and Trade (MEDT) in cooperation with the administration of the Sughd Free Economic Zone (FEZ), Sughd regional government, the National Bank of Tajikistan (NBT) and the OSCE Office in Tajikistan, the event is dedicated to make investors aware of priorities of Tajik FEZs. The meeting has brought together representatives from Tajik ministries and departments, international and regional organizations, diplomatic missions and trade representative offices accredited in Tajikistan as well as companies and public foundations.

5 According to MEDT, four free economic zones have been established in Tajikistan – FEZ Sughd in Sughd province, FEZ Panj and FEZ Danghara in Khatlon province and FEZ Ishkashim in Gorno Badakhshan. To-date, 14 economic entities have been registered with the FEZ Sughd and two economic entities have been registered with the FEZ Panj. A total volume of investment projects at both FEZs is 48 million U.S. dollars. The free economic zones Danghara and Ishkashim are still at the organizing stage of development, the source said.

Source: www.news.tj , Asia-Plus Payrav Chorshanbiyev, Original in Russian

INFLATION FOR JAN-AUG 2011 ESTIMATED AT 8.5%

DUSHANBE, September 16, 2011, Asia-Plus -- In Tajikistan, inflation for the first eight months of this year has stood at 8.5 percent, according to the Agency for Statistics under the President of Tajikistan. 9.5 percent rise in prices of products of food industry has been reported in January-August and non- foodstuffs have risen in cost by 5.0 percent over the report period. Prices and rates for services rendered to the population have risen 11.2 percent over the same eight-month period. In August, consumer prices rose 0.8 percent. Prices of food industry reportedly rose 0.9 percent, while 0.5 percent rise in non-foodstuffs prices was reported last month. Prices and rates for services rendered to the population rose 0.9 percent in August. At first, the government expected the year-end inflation to stand at 7.0 percent in 2011 but in mid- year the year-end inflation was revised from 7.0 to 11 percent. In the meantime, the cost of the set of food products included in the consumer basket for actual consumption in prices as of the end of August 2011 was 120.24 somoni (equivalent to US$25.20) per one family member per month, and with the norm for a balanced diet it was 248.44 somoni (equivalent to some US$52.10), the Agency for Statistics reported.

Source : www.asia-plus.tj, Payrav Chorshanbiev, Original in Russian

TAJIK NATIONAL AIR COMPANIES LAUNCH NEW REGULAR AIR ROUTES TO RUSSIA

DUSHANBE, September 14, 2011, Asia-Plus -- Tajik national air carrier, Tajik Air, is launching three regular air routes to Russia – from Dushanbe to Irkutsk, from to Samara, and from Kulob to . Tajik Air (Tajikistan ) is the national of Tajikistan. It has its head office on the property of Dushanbe International Airport in Dushanbe. Tajik Air now serves the following destinations: China (Urumqi); Iran (); Kazakhstan (); Kyrgyzstan (); Russia (Irkutsk, Moscow, Novosibirsk, , Samara, Sochi, , and Yekaterinburg); Tajikistan (Dushanbe, Khorog, Khujand, Qurghon Teppa); and the (). Another Tajik air company, Somon Air, will launch a new air route to Russia next month. According to the company press center, Somon Air will launch one-weekly service to Krasnodar, the administrative center of Russia’s Krasnodar Krai beginning on October 6. The flight will be operated on Thursdays.Somon Air is an airline based in Dushanbe. It is Tajikistan's first private airline. Somon Air is also the first airline in Tajikistan to launch an online booking system. The airline uses the in its fleet.

Source: www.news.tj Asia plus news agency, Original in Russian

News in brief

6 TAJIK FM RECEIVES U.S. AMBASSADOR AND NEW HEAD OF UNICEF CO IN TAJIKISTAN DUSHANBE, September 15, 2011, Asia-Plus -- Issues related to bilateral cooperation between Tajikistan and the United States were discussed at a meeting of Tajik Foreign Minister Hamrokhon Zarifi and U.S. Ambassador to Tajikistan Kenneth Gross, the Tajik MFA information department reports. The two discussed the process of Tajikistan’s joining the World Trade Organization (WTO), regional cooperation and a number of international issues being of mutual interest. On the same day, Tajik minister received Ms. Laylee Moshiri-Gilani, new UNICEF Resident Representative in Tajikistan. He congratulated her on her new position and wished her success in her work.Ms. Laylee Moshiri-Gilani, for her part, informed Zarifi of ongoing and future projects of UNICEF in Tajikistan. Source: www.news.tj , Original in Russian

TAJIKISTAN IMPROVES BY 11 POSITIONS IN GLOBAL COMPETITIVENESS RANKINGS

DUSHANBE, September 8, 2011, Asia-Plus -- Tajikistan has improved by 11 positions in the overall rankings in the Global Competitiveness Report 2011-2012 published by the World Economic Forum (WEF).WEF ranked Tajikistan 105th among 142 major and emerging economies.

Source: www.news.tj , Asia-Plus Payrav Chorshanbiyev, Original in Russian

TAJIKISTAN ENTREPRENEURS ARE INVITED TO THE EXHIBITION "EXPO PAKISTAN"

DUSHANBE, September 15-(NIAT "Khovar) -Deputy Chairman of Commerce Chamber of the RT Asanali Karamaliev met with the Deputy Ambassador of Pakistan in Tajikistan Altamash Wazir Khan, on September 14. Altamash Wazir Khan officially invited entrepreneurs of Tajikistan to the 6th annual exhibition “Expo Pakistan” to be held in Karachi Expo Center from October 20 to 23, 2011. The exhibition will involve representatives from over 70 countries worldwide. As A.Karamaliev confirmed, the Chamber would intensify its work on the preparation of the delegation to the exhibition “Expo Pakistan”.

Source: www.khovar.tj , NIAT "Khovar", " B.Abubakr , Original in Tajik

LARGE CEMENT PLANT TO BE BUILT IN SOUTHERN TAJIKISTAN

DUSHANBE, September 14, 2011-- Construction of a cement plant with annual capacity of 1 million tons of cement will officially commence in Yovon district, Khatlon province tomorrow. According to the Ministry of Energy and Industries (MoEI), an estimated budget for implementation of this project is 100 million U.S. dollars. “Tajik-Chinese joint venture, Huaxin Gayur Cement, will construct the plant,” the source at a MoEI said. They will use the latest technologies to build the plant and it will meet regional environmental requirements, he added.

Source: www.news.tj Asia plus news agency 14/09/2011, Payrav Chorshanbiev, Original in Russian

7 POWERFUL TRANSFORMER SUBSTATION INTRODUCED INTO OPERATION IN KULOB

DUSHANBE, September 14, 2011, -- A new transformer substation with capacity of 110/35/10 kW has been introduced into operation in the city of Kulob. Nozirjon Yodgori, a spokesman for Barqi Tojik, says more than 9.6 million somoni have been spent for construction of the substation. “The substation will improve the supply of electrical power to residential customers and enterprises in Kulob and vicinity,” he noted. According to him, Barqi Tojik has also constructed 12 small substations and 15 kilometers of power transmissions lines in Kulob.

Source: www.news.tj , Avaz Yuldoshev

OVER 110,000 TONS OF COAL PRODUCED IN TAJIKISTAN IN JAN-AUG 2011

DUSHANBE, September 14, 2011, Asia-Plus -- Over the first eight months of this year, Tajikistan has produced more than 110,000 tons of coal, which is 5.1 percent more than in the same period last year, according to the Ministry of Energy and Industries (MoEI). The source at a MoEI says local coal-producing enterprises have marketed 110,000 tons of coal over the report period, which is 1,700 tons more than in January-August 2010. Over the same eight-month period, Tajikistan has exported 15,200 tons of coal to other countries, including Pakistan.

Source: www.news.tj Asia plus news agency, Original in Russian

M.DAVLATOV: "82 ITEMS OF MEDICINES SOLD IN PHARMACIES IN THE REPUBLIC - FALSE"

DUSHANBE, September 15.--According to the deputy chairman of the state control over the pharmaceutical activity of the republic Mahmadali Davlatov, 82 items of medicines sold in pharmacies in towns and regions are false and do not meet the purpose, brought in through smuggling from abroad. According to the source, only six months in 2011 Ministry of Health Service in conjunction with state control of pharmaceutical activities liquidated 14.5 tons of drugs without the certificate of conformity.

Source: www.khovar.tj , NIAT "Khovar", L.Dilovarzod, Original in Tajik

OFFICIAL RATES OF EXCHANGE OF CURRENCIES AS OF 16 SEPTEMBER, 2011 (www.orienbank.tj)

Exchange % change, % change, Currency Rate (Sept 16) week month USD 4.7679 0.13% -0.65% EUR 6.5807 -1.76% 2.79% RUB 0.1564 -3.58% 5.63% CHF 5.4584 -28.12% 10.05%

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