Abstract
All of the quantitative performance criteria were observed for the period under review. The authorities recognize the numerous challenges facing their program and remain committed to its successful implementation. Given continued strong fiscal performance and the expectation of improved monetary policy implementation, the authorities are confident that they can meet all the program's targets. Discussions with the authorities centered on strengthening the National Bank of Tajikistan (NBT) by restructuring its operations and strengthening the authorities' capacity to implement structural reform.
The following information has become available since the staff report was issued on July 1, 2003. This information does not alter the thrust of the staff appraisal.
The prior action relating to the development of a mechanism for compensating low-income households for higher energy tariffs was observed.
Preliminary data indicate that the authorities met the end-June 2003 indicative targets for net international reserves and net domestic credit of the central bank. An over-performance on net international reserves, however, will be reflected in higher than programmed reserve money.
Preliminary indicators suggest that the authorities are on track to meet the end-June 2003 indicative fiscal targets. Tax collections exceeded projections for April and May and public expenditures were consistent with budget estimates.
The price level declined by 0.4 percent in May (compared with the previous month) and a further 0.8 percent in June.
The safeguards assessment of the National Bank of the Republic of Tajikistan, referred to in paragraph 23 of the staff report is currently with management for approval. The authorities have formally agreed with most of the staff findings and recommendations and the relevant measures will be monitored by staff under the PRGF Arrangement.
On July 1, 2003, gas tariffs were increased to SM 200 per thousand cubic meters, which was a structural performance criterion.