DUSHANBE, August 2, 2013, Asia-Plus -- A Tajik-Belarusian joint venture to assembly tractors Belarus (MTZ) 80.1 will be set up in the Danghara Free Economic Zone (FEZ Danghara), according to the Ministry Energy and Industry (MoEI).

An official source at a MoEI says the Tajik side is represented by the Dushanbe-based Tajiktekstilmash (textile machine building plant) and the Belarusian side is represented by the Minsk Tractor Works (MTZ).

“The joint enterprise will firstly assemble 250 tractors per year and they plan to increase its annual capacity to 1,500 tractors by 2015,” the source added.

We will recall that Prime Minister Oqil Oqilov visited FEZ Danghara last month to get acquainted with preparations for implementation of the project for establishment of two corporate residents in Danghara FEZ – Tajik-Belarusian joint venture for assembling tractors and Tajik-Chinese joint venture for refining petroleum.

In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation.  To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs.  In 2004, the parliament passed a law on free economic zones.  The zones reportedly offer customs and tax incentives to qualified investors that invest at least 500,000 USD and import at least 90% of the technology and equipment.