The Republic of Tajikistan and other Financial Institutions signed IsDB’s ‘’Wakalah Agreements’’ to improve Water Resources Management in the Khatlon Region.

Dushanbe, Republic of Tajikistan, 7 July 2023 – The Ministry of Finance of the Republic of Tajikistan's Project Implementation Unit for Access to Green and Rural Development Finance and other Financial Institutions: the Open-Joint Stock Company (Tawhidbank), Islamic Window of Micro Credit Fund (Imon) and (Asr Leasing) Limited Liability Company have signed the Islamic Development Bank - IsDB's finance project "Wakalah Agreements" for implementation of access to Islamic Finance to improve the Water Resources Management in Khatlon Region in the Republic of Tajikistan. The IsDB Field Representative in the country witnessed the signing event. 

The agreement aims to support the rural credit scheme for agricultural production, productivity improvement, and rural business development. It will be implemented through various Islamic modes of financing: the Murabaha, Salam, Ijara, Mudaraba, and Musharaka systems and employ the technical support of a project consultant that will provide capacity building in Islamic Finance to PIU staff and representatives of the National Bank of Tajikistan and selected financial institutions in the country. 

The Access to Islamic Finance component envisions extending shariah compliant lines of finance, including micro-finance, to farmers and rural communities and supporting them in agriculture value chain financing, primarily in production and processing, rural development, consultancy assistance in capacity building, advocacy and monitoring and evaluation to promote the overall concept of Islamic finance.

The Republic of Tajikistan joined the Islamic Development Bank on 27 November 1996. Since its inception, the overall IsDB Group approvals have exceeded US$680 million for the country.