Tajikistan’s market is much smaller than those of its neighbors Uzbekistan and Kazakhstan and the country’s transport infrastructure still requires significant investment, needing modernizing efforts to its railroads, airports, and tunnels.  While Tajikistan is a member of the Belt and Road Initiative, most trade routes originating in the PRC are directed along more northerly routes through Kazakhstan and/or Uzbekistan due to Tajikistan’s mountainous terrain and access to the larger markets in those countries and beyond into Russia.  PRC investment in transport infrastructure emphasizes goods originating in western China moving westward through Tajikistan, destined for markets in Iran, the Caucasus, and portions of the Middle East.  Little if any of the Chinese goods are intended for Tajikistan.

Conducting business can be complicated by opaque regulations governing standardization and certification processes.  Laws and regulations governing standards, payments, taxation, and customs are poorly understood by inspectors, regulators, and jurists, leading to conflicting implementation guidance.  This uncertainty leads to an unpredictable business environment, and businesses seeking to operate in Tajikistan usually consult with legal firms which specialize in advising foreign businesses in the local market.

Taxation is equally opaque, despite a new 2022 Tax Code which was originally designed and announced as a business and investment stimulation initiative.  Companies often describe the taxation inspection regime as “predatory.” with inspectors tasked to collect predetermined amounts of revenue. The tax structure is steeply graded, meaning that many successful businesses choose to create parallel companies working as “competitors” to each other rather than grow their business beyond a certain point, to avoid the steep taxation burden that comes from moving up the bracket. 

Corruption exists at all levels of the business environment, from licensing, to permits, to inspection.  In several sectors, political connections are necessary to operate, notably within the banking, construction, and procurement sectors.  Tajikistan ranked 150 out of 180 countries in Transparency International’s Corruption Perceptions Index for 2022 .