Bhutan’s Ministry of Finance has launched a new strategy aimed at strengthening the country’s ability to finance its development priorities while advancing climate resilience.
The Bhutan Resource Mobilisation Plan seeks to attract funding for key programmes aligned with the 13th Five-Year Plan, the 21st Century Economic Roadmap, and the government’s ambitious 10X GDP growth strategy. Officials say the initiative is designed to address a persistent challenge facing the country: limited access to financial resources despite growing development needs.
Under the plan, several priority sectors have been identified where investment is urgently required. Among the most significant is the energy sector, where Bhutan plans to expand its hydropower capacity dramatically. The strategy envisions increasing generation capacity tenfold and positioning the country as a fully energy-exporting nation with no reliance on imported energy.
Another key focus area is agriculture. The plan emphasizes strengthening climate resilience in farming systems and ensuring long-term food security in the face of changing climate patterns.
Infrastructure development is also central to the strategy. Authorities aim to ensure that all future roads, bridges, schools, and hospitals are designed to withstand climate-related risks. By climate-proofing infrastructure, the government hopes to build a more sustainable and resilient economy.
While these priorities are already reflected in Bhutan’s 13th Five-Year Plan, officials acknowledge that the existing budget falls short of the funding required to meet the country’s targets.
“The 13th Five-Year Plan outlines broad sectoral programmes, and the total resource requirement is nearly six billion US dollars,” said Tshering Choden, Planning Officer at the Department of Macro-fiscal and Development Finance under the Ministry of Finance. “However, we have not been able to reach that level due to limited financing and resources. This is why resource mobilisation has become essential.”
The new plan outlines potential funding sources and financing mechanisms to help bridge the gap. It also serves as a guide for domestic and international investors, development partners, and the private sector to identify opportunities in Bhutan’s priority sectors.
“For example, in the energy sector, the plan details where investments are needed, how much funding is required, and which donors or financing instruments could be used,” Choden explained. “It provides a practical framework not only for the government but also for private investors and development partners to support strategic areas that will drive Bhutan’s high-income growth agenda.”
Looking further ahead, Bhutan estimates that approximately 56 billion US dollars will be needed to fully realise its Climate Prosperity Plan by 2050. Officials believe achieving that goal will depend on stronger collaboration between the government, international partners, and private sector investors.
