Bhutan’s first-ever Airborne Geophysical Survey has reached 48 percent completion, with the remaining data acquisition expected to conclude by December this year.
Thinley Namgay
Bhutan’s first-ever Airborne Geophysical Survey has reached 48 percent completion, with the remaining data acquisition expected to conclude by December this year.
The survey is a key initiative under the government’s economic development priorities for 2025–2026, aimed at providing crucial insights into the country’s mineral wealth.
This initiative is among roughly 20 strategic undertakings aligned with the government’s 21st Century Economic Roadmap, which aspires to increase Bhutan’s Gross Domestic Product (GDP) tenfold by 2050.
Presenting the State of the Nation Report at the Joint Sitting of Parliament yesterday, Prime Minister Tshering Tobgay highlighted that all current development plans are being steered by this overarching vision.
“The 13th Plan is massive in both scale and ambition,” the Prime Minister said, noting that it aims to double GDP from USD 2.5 billion to USD 5 billion.
As part of its mineral sector reforms, the government has signed 16 mining lease agreements with private operators to drive growth and investment. In parallel, 285 permits have been issued for commercial surface collection activities and 1,391 permits for rural household surface collection.
The macroeconomic outlook for the fiscal year 2024–2025 points to a gradual recovery from the Covid-19 downturn, bolstered by robust domestic sector performance. Inflation has remained moderate at 2.82 percent in 2024, contributing to macroeconomic stability.
In terms of economic expansion, Bhutan’s nominal GDP has grown from Nu 193 billion in 2019 to over Nu 273 billion in 2024, reflecting a 41.5 percent increase. Within a single year, from 2023 to 2024, GDP rose from Nu 249 billion to Nu 273 billion, marking a nominal growth of 9.6 percent. Real GDP growth for 2025 is projected at 8.3 percent, driven by strong performances in construction, hydropower, forestry, and manufacturing.
Despite lifting the vehicle import moratorium in August 2024, foreign currency reserves stood strong at USD 991.14 million, sufficient to cover 26 months of essential imports. However, the public debt remains a concern, currently standing at 99.1 percent of GDP.
A key national priority is the full implementation of plans associated with the Gelephu Mindfulness City, including the construction of the Gelephu International Airport. To ensure progress on these ambitions, a Delivery Unit will be established under the Prime Minister’s Office. This unit will set Key Performance Indicators for ministries and agencies in line with the 10X GDP vision and regularly monitor their performance.
The government acknowledged the Royal Monetary Authority’s loan deferment support for businesses impacted by the pandemic and affirmed the continuation of the Economic Stimulus Programme, which targets the creation of 12,000 new jobs.
To promote foreign direct investment, the government has established the Economic Development Board. Within a year, 20 projects—excluding hydropower—worth Nu 17 billion have been secured. As of May this year, hydropower projects exceeding Nu 200 billion are at various stages of discussion.
Tourism has shown a strong rebound, with Bhutan receiving 156,462 tourists in 2024—a 52 percent increase from the previous year. In 2025, the sector continues to grow, with arrivals up by 51.8 percent on average compared to 2024.
In agriculture, the launch of the National Geographical Indication System on June 10, 2025, is expected to boost exports. A Bhutanese outlet for agricultural, and Cottage and Small Industry products opened in Guwahati, India, on June 23, with another scheduled to open in Siliguri in August.
In 2024, Bhutan earned Nu 3.5 billion in agricultural exports across 19 countries, with cardamom contributing the highest share at Nu 1.23 billion, followed by oranges at Nu 765.10 million.
To improve internet access and affordability, the government introduced Starlink and is negotiating with Bhutan Telecom Limited to cut data costs by 50 percent. Plans are also underway to establish a third international internet gateway, upgrade the Government Data Centre and DrukREN (Research and Education Network), and set up an active disaster recovery site in Bumthang.
A total of Nu 86 billion has been earmarked for infrastructure development, covering roads, bridges, airports, railways, dry ports, and industrial parks.
Recognising the value of natural resources, Bhutan has joined hands with Madagascar, Panama, and Suriname to launch the ‘G-Zero’ Forum—a coalition of carbon-neutral nations. The government has also introduced Natural Capital Accounting, a system to better measure and manage environmental assets.
In collaboration with the United Nations Development Programme, the government has established the Bhutan Innovation Lab under the Prime Minister’s Office. The lab is tasked with applying advanced research, design, experimentation, and public engagement to tackle national challenges and support priority areas.
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