Bhutan Birding and Heritage Travels

“These incentives, though not yet approved, have the objective to encourage domestic and external investment and make business competitive,” said the economic affairs secretary, Dasho Sonam Tshering.

The financial incentives come under the general category and also sector-specific ones like cottage industries, tourism, manufacturing, education, health, employment, mining, it, SEZs, energy, agriculture and construction.

EDP also talks of allowing Bhutanese companies to borrow money from outside and raise equity in foreign markets, which were so far not allowed. Local companies will also be allowed to borrow from among themselves. Banks will also have to raise their capital base from Nu 300m to Nu 1b for lending. The royal monetary authority, however, has strong reservations on the borrowing and lending proposal.

Small and cottage industries will not need a license to start operations for non-prohibited activities, and all other business projects can go ahead under the ‘silence is consent’ approach, if approval or disapproval is not given within 90 days. Frequency of inspection will be more for businesses that violate rules, and unnecessary and overlapping approvals will be eliminated.

Public-private partnership (PPP) for infrastructure projects between government and private sector will be encouraged and embassies and missions abroad will play a more active role in economic diplomacy.

The main objective of the policy is to promote economic growth, achieve economic self-reliance, generate employment, promote entrepreneurship, diversify economic base and increase exports in the next 15 years till 2023, according to Dasho Sonam Tshering.

An important overall goal is building a ‘Brand Bhutan’ to assist exporters with the highest quality standards, reflecting Bhutan’s unique environment and culture in industry, agriculture, hospitality services and textiles.

The policy has identified priority growth areas, which are services, agriculture, energy, cultural industry, construction, transportation and manufacture.

In energy, the focus is on accelerating growth in hydropower and diversifying to other renewable energy sources. Power subsidies for industries will be removed by 2011, but they will be allowed to develop their own hydropower plants. In agriculture, organic products, traditional medicines and processed food will be encouraged.

“For industrial development, the focus is to promote industries that use locally available natural resources and create a higher value addition,” said Yeshey Selden, PPD head of MoEA. She said that the mining policy would give preference to mines that supply raw material to industries.

Under trade, priority will be on creating an enabling environment by simplifying administrative procedures and deregulating activities. A Trade Development Act will come up in the 10th plan to promote trade and reforms. In tourism, the focus will be promoting new markets in eastern and southern Bhutan.

“In education, the idea is to attract high quality foreign and private institutes to Bhutan to make it an international education hub,” said senior programme officer, Sonam. Health will also offer similar facilities, based on Bhutan’s unique environment and climatic conditions. IT will have an infrastructure development policy within this plan period.

The EDP was presented to the cabinet on June 2 by a cross-sectoral team. The cabinet asked for some changes and empowered the gross national happiness commission to finalise the policy. “We hope to make the policy operational by August,” said Yeshey Selden. The draft policy is subject to changes.