Tajikistan Considers Privatization of Tajik Air as Part of State Asset Reform

The Government of Tajikistan is preparing a new privatization program for major state-owned enterprises, with loss-making flag carrier Tajik Air identified as a potential candidate for private investment. Authorities are considering a range of options, including partial share sales, public-private partnerships and strategic investors, although the final list of companies has yet to be approved.

The move comes as the government seeks to address mounting losses and debt across its state-owned enterprises. Officials believe private investors could provide the capital, management expertise and operational improvements needed to reduce the financial burden on the state while modernizing key industries.

For Tajik Air, the challenge is particularly significant. The airline generated just 2.4 million somoni (US$259,000) in revenue in 2023 while recording a loss of 29.6 million somoni (US$3.2 million). According to the report, the carrier would require a comprehensive turnaround, including fleet renewal, working capital, restoration of operating certificates, crew training and rebuilding its passenger base.

The report also notes that Tajikistan’s adoption of an open skies policy has lowered barriers for foreign airlines to enter the market, reducing the incentive for international carriers to acquire the struggling national airline. Instead, potential investors may prefer launching their own services into the country.

Analysts cited in the report argue that any successful privatization will require an international audit, transparent valuation of assets, full disclosure of liabilities and a competitive bidding process. Without these measures, the government’s privatization program risks attracting limited investor interest and failing to achieve its long-term economic objectives.