Nearly 47% of Tajikistan’s GDP comes from immigrant remittances (mostly from Tajiks working in Russia). The current economic situation remains fragile, largely owing to corruption, uneven economic reforms, and economic mismanagement. With foreign revenue precariously dependent upon remittances from migrant workers overseas and exports of aluminium and cotton, the economy is highly vulnerable to external shocks. In FY 2000, international assistance remained an essential source of support for rehabilitation programs that reintegrated former civil war combatants into the civilian economy, which helped keep the peace. International assistance also was necessary to address the second year of severe drought that resulted in a continued shortfall of food production. On 21 August 2001, the Red Cross announced that a famine was striking Tajikistan, and called for international aid for Tajikistan and Uzbekistan; however, access to food remains a problem today. In January 2012, 680,152 of the people living in Tajikistan were living with food insecurity. Out of those, 676,852 were at risk of Phase 3 (Acute Food and Livelihoods Crisis) food insecurity and 3,300 were at risk of Phase 4 (Humanitarian Emergency). Those with the highest risk of food insecurity were living in the remote Murghob District of GBAO.
Tajikistan’s economy grew substantially after the war. The GDP of Tajikistan expanded at an average rate of 9.6% over the period of 2000–2007 according to the World Bank data. This improved Tajikistan’s position among other Central Asian countries (namely Turkmenistan and Uzbekistan), which seem to have degraded economically ever since. The primary sources of income in Tajikistan are aluminium production, cotton growing and remittances from migrant workers. Cotton accounts for 60% of agricultural output, supporting 75% of the rural population, and using 45% of irrigated arable land. The aluminium industry is represented by the state-owned Tajik Aluminum Company – the biggest aluminium plant in Central Asia and one of the biggest in the world.

Tajikistan’s rivers, such as the Vakhsh and the Panj, have great hydropower potential, and the government has focused on attracting investment for projects for internal use and electricity exports. Tajikistan is home to the Nurek Dam, the second highest dam in the world. Lately, Russia’s RAO UES energy giant has been working on the Sangtuda-1 hydroelectric power station (670 MW capacity) commenced operations on 18 January 2008. Other projects at the development stage include Sangtuda-2 by Iran, Zerafshan by the Chinese company SinoHydro, and the Rogun power plant that, at a projected height of 335 metres (1,099 ft), would supersede the Nurek Dam as highest in the world if it is brought to completion. A planned project, CASA-1000, will transmit 1000 MW of surplus electricity from Tajikistan to Pakistan with power transit through Afghanistan. The total length of transmission line is 750 km while the project is planned to be on Public-Private Partnership basis with the support of WB, IFC, ADB and IDB. The project cost is estimated to be around US$865 million. Other energy resources include sizeable coal deposits and smaller, relatively unexplored reserves of natural gas and petroleum.
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 totalled 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 labour. 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.