Tajikistan is not often mentioned among global digital hubs. However, it now stands as an example of how digitalization can deliver economic gains, with a digital transformation in its customs and borders cutting clearance time from days to a few hours, slashing costs, and boosting compliance for local firms.
Tajikistan is a landlocked nation in Central Asia that relies on transit through its neighbors, Uzbekistan and Kazakhstan. This makes its borders critical infrastructure in the country’s trading, and every hour saved at customs can translate to real economic value for Tajiks.
This also makes the country’s digital roadmap for its borders one of its most defining in recent times. The program, spearheaded by the Customs Service of the Republic of Tajikistan, is supported by the United Nations Trade and Development (UNCTAD)’s Automated System for Customs Data (ASYCUDA) program and the World Bank, through the Central Asia Regional Links Programme.
Since October, all processes at the borders are processed through ASYCUDA, with traders now filing all import and export documents online. According to UNCTAD, this has slashed clearance time from days to hours and significantly reduced costs. With less paperwork, errors and fraud have also declined.
With a $13 billion gross domestic product (GDP) and a population of just above 10 million, Tajikistan is Central Asia’s smallest economy. Agriculture remains the biggest employer, with hydroelectricity one of its main exports to neighboring countries. Labor migration remains a key pillar of the economy, with remittances accounting for a sizable share of the national income.
With limited domestic demand and reliance on external borrowing, Tajikistan stands to gain more from digitalization than most advanced economies.
Beyond the borders, the Tajik government has digitalized its passenger declaration module, allowing those traveling in and out of the country to submit their documents online. This has cut costs for the government, reduced wait times at customs clearing, and enabled cashless transactions.
UNCTAD pledged to continue working with Tajikistan to digitalize other government services for “faster and more transparent customs services.”
“Tajikistan’s experience shows how innovation and international cooperation can redefine the meaning of connectivity, transforming digital reforms at the border into drivers of economic resilience and regional integration,” the Geneva-based organization wrote.
Tajikistan joins other Central Asian nations in embracing digitalization to catch up with Southeast Asia, where most government services are now available digitally. Kazakhstan, the largest economy in the region, has been leading the pack. A UN report placed it 24th globally for digitalization and in the top ten for online public services.
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Source: https://coingeek.com/tajikistan-digital-push-cut-costs-time-risk/
