It has become something of a custom for authorities in Tajikistan to announce major investment deals which are unlikely to materialize. Apparently, the latest agreement with Iran announced this week by Tajikistan’s Ministry of Economic Development and Trade (MEDT) belongs to this category of deals.
On February 23, the Ministry told journalists that Iranian entrepreneurs have agreed to build the first specialized industrial town in Tajikistan. The industrial town will reportedly host about 50 industrial enterprises, including plants processing aluminium, cotton, and fruit. These enterprises will employ an estimated 20,000 people. The industrial town will occupy an area of 100 hectares (250 acres) in the Rudaki district, adjacent to Tajikistan’s capital city Dushanbe. According to the authorities, construction of the facilities will take about three years and will begin as soon as Iranian specialists complete all technical plans and feasibility assessments.
It is clear that a project involving the construction and equipment of so many enterprises, training thousands of people, and marketing of goods will require massive investment. It is equally clear that Iran whose economy is increasingly damaged by tougher international sanctions would not be able to provide this investment. What remains unclear, however, is what would happen to previous investment pledges made by Iran.