The TadAZ aluminium smelting plant, in Tursunzoda, is the largest aluminium manufacturing plant in Central Asia, and Tajikistan’s chief industrial asset.
In 2014 Tajikistan was the world’s most remittance-dependent economy with remittances accounting for 49% of GDP and expected to fall by 40% in 2015 due to the economic crisis in the Russian Federation. Tajik migrant workers abroad, mainly in the Russian Federation, have become by far the main source of income for millions of Tajikistan’s people and with the 2014–2015 downturn in the Russian economy the World Bank has predicted large numbers of young Tajik men will return home and face few economic prospects.
According to some estimates about 20% of the population lives on less than US$1.25 per day. Migration from Tajikistan and the consequent remittances have been unprecedented in their magnitude and economic impact. In 2010, remittances from Tajik labour migrants totaled an estimated $2.1 billion US dollars, an increase from 2009. Tajikistan has achieved transition from a planned to a market economy without substantial and protracted recourse to aid (of which it by now receives only negligible amounts), and by purely market-based means, simply by exporting its main commodity of comparative advantage — cheap labor. The World Bank Tajikistan Policy Note 2006 concludes that remittances have played an important role as one of the drivers of Tajikistan’s economic growth during the past several years, have increased incomes, and as a result helped significantly reduce poverty.
Graphical depiction of Tajikistan’s product exports in 28 color-coded categories
Drug trafficking is the major illegal source of income in Tajikistan as it is an important transit country for Afghan narcotics bound for Russian and, to a lesser extent, Western European markets; some opium poppy is also raised locally for the domestic market. However, with the increasing assistance from international organizations, such as UNODC, and co-operation with the US, Russian, EU and Afghan authorities a level of progress on the fight against illegal drug-trafficking is being achieved. Tajikistan holds third place in the world for heroin and raw opium confiscations (1216.3 kg of heroin and 267.8 kg of raw opium in the first half of 2006). Drug money corrupts the country’s government; according to some experts the well-known personalities that fought on both sides of the civil war and have held the positions in the government after the armistice was signed are now involved in the drug trade.UNODC is working with Tajikistan to strengthen border crossings, provide training, and set up joint interdiction teams. It also helped to establish Tajikistani Drug Control Agency. Tajikistan is also an active member of the Economic Cooperation Organization (ECO).
Besides Russia, China is one of the major economic and trade partners of Dushanbe. Tajikistan belongs to the group of countries with a high debt trap risk associated with Chinese investment within the Belt and Road Initiative (BRI) meaning that excessive reliance on Chinese loans may weaken country’s ability to manage its external debt in a sustainable way.
Transportation:
In 2013 Tajikistan, like many of the other Central Asian countries, was experiencing major development in its transportation sector.
