In a landmark move aimed at catalyzing economic growth in the Himalayan kingdom, the World Bank has unveiled a fresh Country Partnership Framework (CPF) for Bhutan, accompanied by a USD 300 million financing package. Aligned closely with the government’s 13th Five-Year Plan, the initiative emphasizes job creation, private-sector investment, and preservation of the nation’s famed cultural and environmental patrimony.
Under the CPF’s broad umbrella, priority will be given to sectors known for their employment potential—renewable natural resources, agribusiness, tourism, and burgeoning digital and creative industries. The Bank has signaled that alongside direct project support, it will facilitate access to innovative finance and payment platforms, thereby opening up markets for small and medium enterprises. Complementary investments in health, education and skills development are set to underpin these sector-specific efforts, laying the groundwork for sustainable, long-term job growth, especially among women, youth and other vulnerable groups.
A core pillar of the framework is enhancing Bhutan’s resilience in the face of climate change. The $300 million envelope will help fortify infrastructure to withstand extreme weather events, while simultaneously backing the government’s ambitious push to expand hydropower capacity and diversify into other renewable energy sources. By marrying green infrastructure with digital connectivity, the Bank aims to knit together remote mountain communities and urban centers, facilitating smoother flows of goods and information.
In tandem with the CPF, the World Bank’s Board of Directors approved an additional USD 300 million for the second phase of the “Accelerating Transport and Trade Connectivity in Eastern South Asia” program. This tranche—which includes USD 154 million in grant financing—targets priority corridors in Bhutan, such as the vital Gelephu–Tareythang stretch of the Southern East–West Highway. Once complete, the project is expected to slash border clearance times by roughly 25 percent and cut travel durations along the corridor by up to 70 percent.
Speaking at the announcement, World Bank officials underscored the strategic importance of linking Bhutan more closely with regional markets. “Improved transport and digital platforms will not only boost exports but also foster inclusive growth by bringing economic opportunities to underserved populations,” one senior Bank representative noted.
With the CPF now in place, Bhutan stands poised to leverage these investments for a balanced development trajectory—one that marries modern economic imperatives with a steadfast commitment to its unique cultural identity and pristine environment. The challenge ahead will be to translate this financial backing into tangible outcomes on the ground, ensuring that roads, power plants and digital gateways serve as conduits for broad-based prosperity.
