Unprofitable SOEs in Tajikistan burdened by debt that poses risk to country’s financial stability, says World Bank

By bne IntelliNews July 22, 2024

Unprofitable SOEs in Tajikistan burdened by debt that poses risk to country’s financial stability, says World Bank

Most large state-owned enterprises (SOEs) in Tajikistan are unprofitable and represent significant fiscal risks that are a danger to the country’s financial stability, according to a report by the World Bank.

The report, “Tajikistan Economic Update: Focusing on the Footprint of State-Owned Enterprises and Competitive Neutrality, Summer 2024,” concluded that as of early this year, 27 state-owned enterprises monitored by the finance ministry were burdened by a total debt of Tajikistani somoni (TJS) 60.8bn ($5.7bn). The sum is equivalent to 46.5% of Tajikistan’s 2023 gross domestic product.

Among the major debtors are:

  • Barqi Tojik—the power utility’s debt stood at more than TJS 37.4bn.
  • Rogun hydropower plant—the project enterprise’s debt amounted to TJS 9.3bn 
  • Tajik Aluminum Company (TALCO), Tajik Railways and natural gas distributor Tajiktransgaz, which had a combined debt of TJS 2.3bn.
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