In a significant step toward strengthening Bhutan’s economic future, the World Bank has approved a USD 25 million financing package aimed at boosting job creation and enhancing the country’s economic resilience.
The initiative, known as the First Growth and Jobs Development Policy Financing, is designed to support a broad set of reforms that prioritize employment opportunities—particularly for young people, women, and vulnerable communities who often face barriers in the labor market.
According to officials, the program will focus on improving fiscal discipline and debt management while also strengthening protections for workers. At the same time, it seeks to stimulate private sector growth, recognizing its central role in generating sustainable employment.
A key component of the reform agenda involves improving the business environment in Bhutan. Measures will include expanding access to finance for businesses and enhancing the framework governing foreign direct investment, making it easier for international investors to participate in the country’s economic development.
Tax reforms are also expected to play a crucial role. These changes aim to simplify the tax system and reduce the corporate tax burden, thereby encouraging business activity while maintaining the government’s ability to mobilize domestic resources. Yumeka Hirano noted that these adjustments are intended to strike a balance between supporting firms and ensuring fiscal sustainability.
The financing package comprises both a grant and concessional funding, reflecting a blended approach to support Bhutan’s development goals. It also marks the first phase of a planned series of three operations, signaling continued international backing for the country’s economic reform efforts.
As Bhutan navigates global economic uncertainties, the program is expected to provide a timely boost—helping to create jobs, strengthen institutions, and lay the groundwork for more inclusive and resilient growth.
