Tajikistan’s remittance at 51.6 per cent of their GDP is highest in the Asia
Published Date: Sunday, Jul 07, 2013
Tajikistan’s remittance at 51.6 per cent of their GDP is highest in the Asia
In a recent world bank report released in May 2013 titled “Sending Money Home to Asia: Trends and opportunities in the world’s largest remittance marketplace”, reveals that remittances Tajikistan is the highest in Asia at 51.6 per cent of their GDP. This is followed by Kyrgyzstan at 32.2 per cent. The other Asian countries with highest remittances in proportion to GDP are Nepal at28.5 per cent, Afghanistan at 16.3 per cent and Bangladesh at11.6 per cent.
Tajikistan has migrant outflow of about 791,618 and inflow of 284,291, next only to Uzbekistan 1,954,460 outflow and 1,175,935 inflow in Central Asia. This high rate of labour inflow and outflow is also attributed to the political instability in and around the region since 1992 where it witnessed large scale civil war. The country is also having one of the lowest per capita GDPs among the all former Soviet republics. With less than 7% of the land area is arable and other economic disadvantages, the country has very high unemployment rate leading to migration to other countries and hence remittances are the backbone of their economy.
For sometimes, remittances will play very crucial role in Tajikistan till the other economic activities get momentum. Thanks to the role of Micro Finance Institutions as well as Post Offices that have contributed a lot in supporting the remittance flow to the country, especially in the rural areas.