Despite strong growth of 7.2% per year on average since 2005 the macroeconomic environment remains fragile. The economy is still heavily reliant on agriculture, aluminium and remittance and vulnerable to unexpected disturbances. Tajikistan remains the poorest country of operations of the EBRD with a per capita income of US$580 in 2007.

The strategy identifies the following challenges for the next years:

• Reform of the agricultural sector, including full implementation of the “freedom to farm” and establishment of transferability of land including the ability of the farmers to pledge land as collateral;
• Enhance corporate governance and transparency of large state-owned enterprises in industry;
• Strengthen the supervisory capacity and independence of the financial sector regulator so that financial institutions can operate on a fully commercial basis;
• Further improve governance and regulatory framework in the infrastructure sector to attract private sector participation;
• Advance the investment climate to foster the development of small and medium-sized enterprises.

• Fostering the private sector: The Bank will continue to concentrate on the private sector, in particular the development of micro, small and medium-sized companies. In the agribusiness sector the Bank will accelerate its efforts to support reforms and provide finance through credit lines to local commercial banks.
• Strengthening the financial sector: The EBRD will increase the sector’s capitalisation and enhance its capacity for financial intermediation. The Bank will also broaden its products range and consider the introduction of local currency funding. The Trade Facilitation Programme remains a pillar of activities.
• Support for infrastructure development: The Bank will continue its work in niches where it has already acquired substantial expertise such as the water and transport sectors. The EBRD will concentrate on basic needs and affordability and combine these with gradual commercialisation of the sector.