In the wake of the Covid-19 pandemic’s economic upheaval, Bhutan stands resilient with a strategic plan for revival. Prime Minister Tshering Tobgay’s announcement of the Nu 15 billion Economic Stimulus Programme (ESP) marks a pivotal moment in steering the country towards recovery and growth.
The pandemic’s impact on Bhutan’s economy was profound, with a staggering contraction of -10.2 percent in 2020. Recognizing the urgency of the situation, Prime Minister Tobgay aptly characterized it as a dual crisis: one of economic growth prospects and fiscal stability. In response, the ESP emerges as a beacon of hope, aimed at mitigating the adverse effects and charting a path forward.
At its core, the ESP embodies a multifaceted approach to address the diverse challenges faced by various sectors of the economy. With a dedicated secretariat overseeing implementation and ongoing policy reviews, it embodies a commitment to effective governance and adaptability.
Crucially, the support of Bhutan’s neighbor and close ally, India, injects further momentum into the programme. Ambassador Sudhakar Dalela’s announcement of India’s contribution underscores the importance of regional cooperation in times of crisis. The immediate release of Nu 2.5 billion underscores India’s commitment to Bhutan’s economic well-being.
The ESP’s objectives are clear and comprehensive: to revive key sectors, create jobs, and bolster overall economic health. Prime Minister Tobgay outlined a range of measures, from low-interest loans to targeted support for farmers, cultural enterprises, and youth. Particularly noteworthy is the focus on addressing the high non-performing loans and improving liquidity in banks, essential for restoring confidence in the financial system.
In line with Bhutan’s vision of sustainable development, the ESP prioritizes sectors such as tourism, agriculture, and cottage industries. Investments in tourism infrastructure and innovative initiatives to attract visitors signal a forward-looking approach to reviving a vital sector of the economy. Moreover, initiatives to promote youth employment and entrepreneurship underscore a commitment to inclusive growth and social empowerment.
Finance Minister Lekey Dorji’s endorsement of the ESP highlights its far-reaching impact, from enhancing liquidity to promoting business opportunities and human capacity building. The programme’s comprehensive scope reflects a holistic understanding of Bhutan’s economic landscape and the interconnectedness of its various components.
However, amidst the optimism, Prime Minister Tobgay’s prudent decision regarding the moratorium on housing loans and vehicle imports demonstrates a balanced approach to economic management. By aligning policies with careful study and stakeholder consultation, the government ensures a sustainable and equitable recovery process.
As Bhutan embarks on its journey towards economic recovery, collective efforts from all stakeholders will be crucial. Prime Minister Tobgay’s call for unity underscores the shared responsibility in overcoming challenges and realizing the potential of the ESP. Together, Bhutanese citizens, businesses, and policymakers can build a brighter future, anchored in resilience and solidarity.
In the face of adversity, Bhutan emerges not just as a nation with a plan, but as a beacon of hope and resilience—a testament to the power of visionary leadership and collective action. The Nu 15 billion Economic Stimulus Programme represents not just an economic strategy, but a reaffirmation of Bhutan’s values and commitment to its people’s well-being.
