The Asian Development Bank (ADB) has approved a $50 million policy-based grant to support the government of Tajikistan in accelerating private sector growth by creating a stable financial system, increasing access to financial services, and improving fiscal management. The grant is for the first phase of the Financial Sector and Fiscal Management Improvement Program.
Major reforms include improving public confidence towards the banking sector via setting up backup funding mechanism for the Individuals Deposit Insurance Fund to cover potential shortfalls in reserves, enhancing the ability of the National Bank of Tajikistan to monitor and manage financial stability, expanding the competitiveness of the insurance industry and growing Islamic finance.
The program also supports the Ministry of Finance in strengthening oversight and accountability of state-owned enterprises, facilitating capital market development, and ensuring transparency of the mechanism for the provision of tax and customs incentives.
The program will also improve transparency and accountability of the public financial management system to help ensure that public resources are allocated appropriately to strategic priorities, and are gender inclusive.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source: Orissa Diary