KP Sharma

To strengthen the partnership between the Parliament and the private sector and to ensure that business voices are included in the legislative process, the Parliament launched the Parliament-Private Sector Collaboration Strategy yesterday.

The strategy is designed to improve communication channels, promote legislative engagement, and support Bhutan’s 13th Plan.  It comes at a crucial time when the private sector is facing stagnant growth despite being recognised as a key driver of the economy.

In 2022, Bhutan’s domestic revenue reached Nu 35.855 billion, with state-owned enterprises (SOEs) contributing around 55 percent of this total. In contrast, the private sector accounted for only 45 percent, highlighting its limited capacity.

The private sector is confronted with numerous challenges, including insufficient collaboration with the government, minimal involvement in economic planning, and difficulties in talent retention. Additional issues include limited access to finance and regulatory constraints.

While market interventions are often well-intentioned, they have occasionally resulted in inefficiencies, underscoring the need for coordinated collaboration and reform.

The 13th Plan sets an ambitious target of achieving a GDP of USD 10 billion by 2034, a goal that necessitates close cooperation between the government and the private sector, along with a clear roadmap to tackle existing challenges.

The new strategy outlines four key areas for collaboration: conducting legislative consultations and impact assessments with stakeholders to formulate supportive policies; addressing critical private sector development issues; promoting transparency and accountability; and strengthening engagement with local business communities across the dzongkhags.

It also includes plans for annual Parliament-private sector meetings to improve communication and build capacity through training and exposure.

The Speaker of the National Assembly, Lungten Dorji, said that this initiative will not only address current challenges within the sector but also empower the private sector.

The Chairperson of the National Council, Sangay Dorji, described the strategy’s launch as a milestone in the relationship between Parliament and the private sector, marking a significant shift in recognising the role of the private sector.

“The launch aims to create an environment where the private sector’s concerns are heard and raised through appropriate platforms that include various representations,” he said.

The President of Bhutan Chamber of Commerce and Industry, Tandy Wangchuk, said that the strategy was prepared following consultations with former and current parliamentarians. “It provides a formal mechanism for the private sector to engage with Parliament on laws and regulations,” he said.

The Executive Director of the Handicrafts Association of Bhutan, Chorten Dorji, highlighted that the strategy will enable better harmonisation of policies and rules between the government and the private sector, overcoming previous policy constraints that hindered development.

The project is part of the Voice for Green Change Partnership (V4GCP), led by the Handicrafts Association of Bhutan, in collaboration with BCCI and other business sector associations, with support from the Parliament of Bhutan.