As my time in Bhutan as the World Bank’s Interim Country Director comes to a close, I leave with a deep sense of admiration, gratitude, and optimism for the country’s future.
As Bhutan aims to double its GDP per capita by 2029 and quadruple it by 2034 to achieve high income status, the WBG is stepping up its program significantly. Under the World Bank Group’s new Bhutan Country Partnership Framework (CPF) for 2025–2029, we expect to increase our financing from under $200 million in the previous five-year cycle to over $1 billion over the next five years, through a mix of grants and highly concessional loans so as not to overburden the country with debt. We delivered four projects worth $420 million this year, and we are coming in with the full force of the One World Bank Group, working closely with our private sector arms, IFC and MIGA to mobilize private sector growth and investment.
Our new Partnership Framework is anchored in Bhutan’s 13th Five-Year Plan and shaped through extensive consultation with government, private sector, civil society, and over 1,600 citizens through online surveys. Our goal is to help Bhutan create more and better jobs, in particular for women, youth, and disadvantaged groups, and accelerate economic growth while safeguarding Bhutan’s unique cultural and natural heritage. We will help to achieve three outcomes: increase private investment, enhance climate resilience, and build resilient infrastructure for better connectivity.
Through my travels in Bhutan, I witnessed firsthand the sense of ambition and enthusiasm for the future. In Gelephu and Zhamgang, I heard about the high hopes for what the Gelephu Mindfulness City can bring to the country by way of private sector investment, innovation, connectivity, agricultural supply chains, eco-tourism and jobs. We are privileged to finance the Gelephu -Tareythang road which will serve as a gateway to GMC and sets high standards in terms of environmental and social sustainability. We are also supporting enhanced digital connectivity which is critical to rapid growth. In the East, I visited Dorjilung where the World Bank Group is partnering with Druk Green Power Company to finance a 1.125 MW hydropower plant with the highest standards of technical, environmental and social design to ensure that the investment is resilient to climate change and brings the greatest benefits to the people of Bhutan, starting with the local communities.
It is evident from my visits to schools in Thimphu and Punakha that the education sector is committed to improving the environment for foundational learning by continuous teacher training, enhancing connectivity, and establishing inclusive water and sanitation facilities. It was impressive to see a Technical Training Institute in Punakha with a large number of female students obtaining certifications in electrical and mechanical skills with high demand in the job market, including in the growing hydropower sector. In Trongsa and Zhemgang, Bhutan’s poorest district, I met with farmers working individually or in cooperatives to increase their market access, including through exports. While they face constraints, their innovative spirit and drive gave me confidence as we step up our partnership with the Royal Government of Bhutan to increase value addition and employment in selected value chains by moving towards a more market-based approach. In Phuentsholing, Bhutan’s busiest trade hub, I saw the power of technology to streamline border procedures and strengthen tax systems. At the Thimphu TechPark, I saw what can happen when an idea, nurtured over a decade ago with World Bank support, takes root and grows into a vibrant hub of innovation and jobs.
These experiences tell me that Bhutan’s next chapter must be about connecting people to opportunities—through education and skills, infrastructure, markets, and inclusive institutions. It must also be about creating space for the private sector to grow and lead, while the state remains an enabler of progress. Bhutan remains dependent on hydropower, agriculture, and tourism—sectors increasingly affected by climate change. All of our joint initiatives support diversification of the economy, key to creating more private sector jobs, creating alternatives to outmigration, and strengthening resilience in the face of increased climate risks.
Our role, as the World Bank Group, is to walk alongside Bhutan on this journey—as a trusted partner, a source of financing and knowledge, and a bridge to global best practices. We are also here to listen, learn, and co-create solutions that reflect Bhutan’s values and vision.
We are incredibly proud of our partnership with Bhutan spanning over four decades and what we have achieved together. Over the past decades, Bhutan has achieved extraordinary progress. It has nearly eliminated extreme poverty ($2.15/day), connected almost all households with clean and renewable electricity, and steadily improved education and health outcomes. Bhutan is the world’s first carbon-negative nation, while also recording the highest GDP growth in South Asia projected for both this year and next. Guided by the philosophy of Gross National Happiness and with its deep roots in Buddhist culture, Bhutan reflects an understanding that modernity, tradition, nature, and spirituality can coexist.
As I leave after a fulfilling eight months, I carry with me the lessons learned, and the friendships forged during my time in Bhutan. I will always be an advocate for Bhutan’s development journey and for our enduring partnership. I am grateful to His Majesty the King and the Royal family, the Royal Government of Bhutan and all stakeholders for the deep partnership and friendship we have forged.
As we continue to work together, I am confident that we will achieve our shared goals and build a bright future for Bhutan.
This blog was originally published in the Kuensel News outlet of Bhutan
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