Success Stories
Tajikistan

GBAO Business Association Reopens Trade Flows From China

An onerous prohibition on truck transport, that affected local entrepreneurs in Gorno-Badakhshan Autonomous Oblast (GBAO), effectively disrupted Tajikistan’s only land trade link to China, and cost local business significant money and time. The “Milal-Inter” Association, a member of the BEI-sponsored GBAO Consultative Council, advocated successfully for revocation of the prohibition, making it possible for an estimated 60 trucks a month to transport goods from China. As a result, businesses in the area are saving well over $1,728,000 in extra shipping costs, annually, and cross-border trade continues to thrive.


A typical Tajik cargo stop. Traffic from China halted 25km from Khorog to unload goods on to smaller vehicles, for transport into Tajikistan.

The predecessor of USAID’s Business Environment Improvement (BEI) Project in Tajikistan, the Trade Facilitation and Investment Project (TFI), supported the creation of a Customs Council in the city of Khorog, Gorno-Badakhshan Autonomous Oblast (GBAO). The Council proved very effective in building dialogue between local business and government entities, as well as in raising and resolving issues of concern to businesses. BEI has continued support for such public-private dialog initiatives by expanding the work of the Customs Councils, and fostering the development of permanent Consultative Councils that focus on business issues other than customs and trade. Because membership in the GBAO Consultative Council and Customs Council overlaps, participants in the new Consultative Council are accustomed to working together to resolve problems.

Such experience with cooperative effort to address business-related difficulties became crucial when, in July 2007, the Chairman of GBAO ordered that all large transport trucks traveling through GBAO from China, be barred from approaching Khorog closer than 25km. Although the route being blocked was the only land trade route between Tajiksitan and China, via the Kulma Pass border post, the order was given because the GBAO Chairman wanted to reduce traffic congestion and avoid wear on city roads and bridges.

Approximately 60 trucks per month were affected by the prohibition, and as a result, entrepreneurs importing goods into GBAO were forced to arrange transport alternatives. For the most part, cargo was transferred to two smaller vans per truck, for the remaining distance. This added a cost of approximately $1,200 per van each month, and consumed more time.

Through the Association “Milal-Inter,” a BEI partner on the GBAO Consultative Council, entrepreneurs appealed to the GBAO Chairman to rescind his order. At the end of July 2007, after several attempts by the GBAO Consultative Council, the Chairman agreed to modify his decision. Large trucks continued to be prohibited from entering Khorog during the day, but under the new order, they are permitted to travel on the roads at night. As a result, trade has been able to flow again without significant difficulty, saving entrepreneurs time, as well as an estimated $1,728,000, annually, in extra transport costs. Potential damage to property and persons, related to additional handling, is now also avoided.

Back to Success Stories