Chairman of the National Bank of Tajikistan (NBT), Jamshed Nourmahmadzoda, admitted last week that the country’s economy is dependent, to a certain extent, on remittances from labor migrants.
During the discussion of development of small and medium-sized enterprises at a meeting of Tajikistan’s upper house (Majlisi Milli) of parliament, Nourmahmadzoda, in particular, noted that fall in investment flow and reduction in volumes of labor migrants’ remittances had affected the activity of local banks.
The Minister of Economic Development and Trade, Nematullo Hikmatullozoda, was the first to publicly recognize the significance of migrants’ remittances for the country’ economy.
Speaking at the ceremony of presentation of the ADB Country Partnership Strategy for Tajikistan, Hikmatullozoda noted in in 2016 that labor migrants’ remittances had helped Tajikistan’s economy withstand and the population survive.
Although, labor migrants still remain a critical component in the country’s economy, Tajik authorities, however, stopped publishing information on the volume of remittances sent to Tajikistan in May 2103. In a report released in Dushanbe, the then head of the National Bank of Tajikistan (NBT), Abdujabbor Shirinov, revealed on July 23, 2013 that Tajikistan will no longer release cash transfer data. According to him, the government stopped publishing information on the volume of remittances sent to Tajikistan in May. “I’d rather not talk about migrants'' funds because this issue may be politicized,” Abdujabbor Shirinov said.
Speaking at a meeting with entrepreneurs in Dushanbe, President Emomali Rahmon last month noted Tajikistan has received 5 billion U.S. dollars in foreign investments over the past five years.
For comparison, over the same period, labor migrants have sent more than 14.7 billion U.S. dollars through the money transfer systems to Tajikistan from the Russian Federation alone.
In a report released at a news conference in Dushanbe, the head of the National Bank of Tajikistan (NBT), Jamshed Nourmahmadzoda, noted on July 25 this year that remittances to Tajikistan has started to grow this month after three months of decline.
“Compared to July last year, remittances to Tajikistan this month have increased by 7 percent or some 90 million US dollars,” Nourmahmadzoda noted.
According to him, remittances declined in April-June. “The situation has stabilized and remittances have started to grow,” Tajik central bank head said.
487 million U.S. dollars have been sent through money transfer system to Tajikistan from Russia over the first three months of this year, which is 15.2 percent more than in the same period last year, according to Russia’s central bank.
Over the first quarter of last year, 423 million U.S. dollars were sent from the Russian Federation to Tajikistan through money transfer system.
Meanwhile, 2.536 billion U.S. dollars were reportedly sent through money transfer system to Tajikistan from Russia last year, which was 607 million U.S. dollars more than in 2016.
In the currency structure the percentage was: Russian ruble – 83 percent; U.S. dollar – 16 percent; and euro – 0.1 percent.
In 2016, 1.929 billion U.S. dollars were sent to Tajikistan from Russia through the money transfer systems, which was 651 million U.S. dollars more than in 2015 (1.278 billion U.S. dollars were sent through money transfer systems to Tajikistan from Russia in 2015).
Meanwhile, 3.831 billion U.S. dollars were sent through money transfer systems to Tajikistan from Russia in 2014 and 4.155 billion U.S. dollars in 2013.
Tajikistan is one of the world’s most remittance dependent countries and labor migrants are still a critical component in the economy of Tajikistan. Remittances keep many struggling families at home above the poverty line.
