Industrial production is mainly concentrated at few large industrial enterprises. In 2002 the volume of industrial output grew by 8.2%, if compared to 2001. Industrial output included the following components: metallurgy (49%), food industry (18.1%), fuel and energy (6%),, milling, grains and feed stuffs (5.8%), industrial construction materials (1.1%), chemical and petrochemical industry (0/9%), machine building and metal processing (0/8%). In 2002 the most rapid growth was observed in industrial construction materials (36.5%), machine building and metal processing (27.1%) and light industry (24.8%).
Tajikistan is rich in various natural resources, including such precious and semiprecious stones, as marble, precious spinel, clinohumite, lazurite, ruby, corundum, sapphire, garnet, rubellite, topaz, morion, polychrome, tourmaline, hambergite, scaploite, turquoise, etc. Many of them are classified as jewellery or collection items. With the view to develop this sector the Government drafted and adopted a development program with regard to production and processing of precious and semiprecious stones from 2001 to 2005, the program identified large deposits that should be given a priority development with the use of foreign investment. Moreover, the Government developed a development program with the regard to processing of precious and semiprecious stones from 2002 to 2010.
The country has sufficient reserves of raw materials for metallurgical, chemical, construction and other sectors. Large silver, gold, iron ore, lead, antimony, coal, sodium chloride, precious stones have been discovered in the country. Lead and zinc, copper and molybdenum, gold, mercury and antimony and fluorite ore’ processing plants are available in the country. Production of processing plants is expected-oriented and enjoys stable demand in the global markets. Further investments is required to develop new deposits, introduce new processing technologies, increase volume of production and processing of coal and various ores, construction of metallurgical plants for processing of concentrates and extraction of rare earths and scattered elements.
Light industry currently encompasses over 100 companies and entities of various form of ownership, including Tajik-Kabol Textiles (Tajik-Korean joint venture), Abreshim and Javoni (Tajik-Italian joint venture), Rishta (Tajik-Chinese joint venture), VT silk and VT Rohi Abreshim (Tajik-Vietnamese joint venture). Production is currently exported to 18 countries, including Italy, South Korea, Vietnam, China, Russia, Germany, Switzerland, India and Uzbekistan. Companies operating in light industry are interested to establish and develop long-term cooperation in trade, production and advanced technologies. There is also a good potential for implementing join projects in the area of processing of such abundant primary commodities, as cotton fibre, silk cocoons, leather, and wool.
Food industry encompasses 34 companies, 55 agriculture entities, 18 small and 12 other businesses in such areas as fat and oil production, which includes companies engaged in processing of cotton seeds, packing and canning production of fruit and vegetables cans; non-alcoholic beverages production of mineral water and soft drinks; salt industry- mining and production of table salt: and confectionary wide range of products. Obi Zulol Tajik US joint venture is quite successful in production of mineral water, Dushanbe Tobacco Company in production of cigarettes, Tetra Pack joint Venture- in production of juices. There are further opportunities for implementing joint projects in processing of fruit and vegetables, production of dried fruits, vegetables oils, as well as fruit juices.
Chemical industry was developed on the basis of available natural reserves, cheap power energy and abundance of water resourses. Tajikistan has unique reserves of salt concentrated in Hoja Mumin and Tut Bulat deposits, limestone in Pushur, boron in Ak Arhar, phosphorites and many others. The country has various several plants for processing of chloride-bearing products and disinfectants, ammonia and nitrogen fertilizers. Various household chemical goods, paintworks and explosive are produced in the country. The further development is envisaged with regard to production of synthetic hydrochloric acid, solid caustic soda, coagulant for water purification, etc.
Machine-building complex consists of approximately 100 enterprises and accounts for 7.4% of industrial output. Current facilities allow manufacturing a wide range of production, including precision machines, individual parts and components and mounted spare of agriculture equipment, and pipeline fittings. The Government gives priority to development of assembly of tractors, vehicles and passengers buses and various consumer electronics. Moreover, several enterprises have been restructured to manufacture goods from local raw material.
Energy and Electrical Manufacturing Industries
Tajikistan is famous for its huge hydropower resources, which are estimated at the level of 527 billion kWt-h. However, only 3% of this potential is being used. There was lack of foreign investment in electronic power and gas coal production for the few years. Existing energy stations use only 50-8% of their capacity. Approximately 50% of equipment distribution networks and substation require rehabilitation. There are several hydropower plants (HPP). Nurek HPP is the largest one. Over the past years, energy generation, subject to annual water accumulation, is about 15.5 billion kWt-h. Investments in existing power facilities such as Nurek. Kairakum and Baigazi HPPs and small HPPa will allow raising generation capacity to additional 3.0 billion kWt-h. Investment of Sangtuda and Rogun HPPs construction is quite attractive for investors. General capacity of these HPPs is at the level of 2.7 and 13.1 billion kWt-h, respectively. Energy production at these HPPs id the cheapest in comparison with all power generating in Central Asian region. There are also 30 existing and 50 new SHPPs which require further investments. Limited possibilities on use alternative energy sources and low tariff on electric power encourage the use of electric power. In the period of economic recession the consumption of electrical power increased by 85 %. Barki Tojik is the national monopoly that controls the energy sector. The Government takes measures for the improvement of energy sector.
Tajik gas is supplier of natural gas to population and businesses. The company has set equal tariffs for all categories of consumers with the view to cover its expenses through improved payment collection. The Government has established the Ministry of energy to manage legal and regulatory relations within the energy sector. The country has some large oil, gas and coal deposits which are offered for further development. Further development of oil and gas sector is a very attractive area for investment, since 96% of natural gas and 100% of oil deposits are imported to Tajikistan from neighbouring countries. At present, Rengan deposit, located in 35 km from Dushanbe, and Sargason deposit in Dangara, are proposed for foreign investors. Probable reserve of natural gas in these deposits amount to 30-50 and 100 billion m3, respectively.
Electrical manufacturing industry produces transformers, low voltage equipment, lighting equipment, cables, etc. Companies closely cooperate with producers from CIS countries and have a significant potential for further development.