Remittance flows to Tajikistan continue decreasing despite rising labor migration

According to data from Russia’s central bank, 1.111 billion U.S. dollars have been sent by physical entities through money transfer system from Russia to Tajikistan over the first six months of this year, which was 48 million U.S. dollars or 4.2 percent fewer than in the same period last year.   

Meanwhile, remittance flows from Tajikistan to Russia have decreased over the same ix month period by 32.2 percent – from US$80 million in January-June of 2018 to US$54 million in January-June of 2019.  

Uzbekistan reportedly topped CIS nations in terms of remittance flows sent from Russia through money transfer systems over the same six-month period – 2.039 billion U.S. dollars (11 percent increase compared to the same period last year).  

Remittances from Russia to banks in Kyrgyzstan over the report period have amounted to 935 million U.S. dollars (17 percent decrease compared to the same period last year).  

Recall, US$2.553 billion were sent through money transfer system to Tajikistan from Russia last year, which was 17 million U.S. dollars more than in 2017.

Last year, remittances from Tajik citizens sent through money transfer system to the country from Russia were reportedly equivalent to 36 percent of all economic output (as measured by gross domestic product or GDP). 

It is to be noted that remittance flows from Russia to Tajikistan are continuing to decrease despite increasing number of Tajiks leaving the country in search of better employment opportunities

According to data from Monitoring and Early Warning in Tajikistan monthly report for August this year, more than 411,000 people have left Tajikistan for seasonal work over the first eight months of this year, which was 26 percent more compared to the same period last year.  

The increase in labor migration is reportedly due to a certain improvement of labor conditions for labor migrants (amendments made to the Tajik-Russian agreement on labor activities and protection of rights of labor migrants) and Russia’s economic growth.    

According to some Russian sources, an estimated 1 million Tajik labor migrants are currently working in the Russian Federation.       

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.