UN experts discussed in Geneva with the official delegation of Tajikistan the situation with the country’s external debt. At the same time, the volume of debt to China was especially noted. The discussian took place at the beginning of Octover 2022.
To date, the total external debt of Tajikistan is $3.2 billion. The country’s population, especially opposition representatives living abroad, are concerned about the continuous growth of external debt, but the authorities say there is no cause for concern, the Asianews portal reported.
The discussion about the external debt of Tajikistan unfolded during the consideration of the Tajik government’s report on ensuring social and economic rights in the country over the past five years. Experts from the UN Committee on Economic, Social and Cultural Rights asked Tajik officials about the high level of external debt and how these funds are being spent.
In particular, the question was asked – “According to the World Bank report, Tajikistan’s external debt has more than doubled over the past ten years and reached 67% of total GDP in 2016. What measures have been taken to change this situation?
A Tajik delegation led by Justice Minister Muzaffar Ashuriyon confirmed that the country’s external debt had doubled over the past ten years. At the same time, representatives of the delegation assured that “Tajikistan can fully and timely pay off its debt.”
“The government is taking measures to reduce dependence on external debt and is trying to increase mining and develop agriculture,” said representatives of Tajikistan.
When asked how Tajikistan spends this money and in which areas the funds received from abroad are mainly directed, the Tajik delegation replied that over 50% of the external debt was used for social development programs, about 10% for the health sector, 8% – for education and 5% – for housing construction.
These data were given against the backdrop of constant complaints from residents of Tajikistan about low salaries and pensions, unemployment, lack of furniture and equipment in schools, and the poor quality of medical services, Asianews wrote.
The Ministry of Finance of Tajikistan announced that the external debt of Tajikistan as of July 1, 2022 reached $3.2 billion, which is 41.6% of GDP. In other words, every resident of 10 million Tajikistan owes $320 to foreign organizations and countries .
In the first half of 2022, it was possible to reduce the amount of external debt by $44.9 million, according to the Ministry of Finance of Tajikistan. However, the volume of external debt, equal to 41.6% of GDP, is very high and places a heavy burden on the country’s budget. Especially if we take into account that in accordance with the external debt management strategy adopted by Tajikistan itself, external debt should not exceed 40% of GDP, the portal writes.
Another worrying trend, as observed by international financial organizations and Tajikistan’s partners, is Dushanbe’s huge debt to Beijing. Experts have repeatedly warned Dushanbe and advised to think about the consequences of such debt bondage.
Over the past few years, China has taken possession of some ports, airports and mineral deposits in Asia and Africa in exchange for unprecedented loans. For Tajikistan, such facts should be a clear example.
At this moment, the Chinese Eximbank is the largest creditor in Tajikistan. The total debt to the Chinese bank amounted to $1 billion 129.79 million by April 2021.
UNDP experts expressed also concern about widespread bribery and corruption in the country, unemployment, low wages and low education in schools in Tajikistan.
In the Corruption Perceptions Index, Tajikistan ranks 153rd out of 198 countries worldwide, which is a matter of serious concern. At the same time, experts appreciated the government’s efforts to combat discrimination and respect the rights of workers and ensure their safety in the workplace.
inozPRESS.kg,
Oct. 12, 2022