The Economic Stimulus Program (ESP) has approved 832 loans amounting to Nu 473 million as of March 26, 2025, providing a significant boost to businesses across various sectors. The initiative, aimed at reviving existing businesses, fostering new ventures, and stimulating economic growth, continues to garner attention as the government works to address the challenges posed by recent economic disruptions.
According to the Bhutan Development Bank Limited (BDBL), a total of 3,969 loan applications, valued at approximately Nu 11 billion, have been received under the ESP, highlighting the widespread demand for financial assistance among businesses. While 1,128 applications have already been approved, the remaining applications are still under review and are expected to be processed by June 2025.
Among the approved loans, a significant portion has been allocated to the Primary Agriculture and Livestock sector, with Nu 228.28 million disbursed across 712 applications. This sector, which plays a crucial role in Bhutan’s economy, benefits from a loan ceiling of up to Nu 1 million per applicant. The funds will help farmers and agribusinesses enhance productivity, improve infrastructure, and expand their market reach, thereby contributing to greater food security and self-sufficiency in the country.
The Cottage and Small Industries (CSIs) sector, essential for job creation and local economic development, has also received substantial support. Nu 76.31 million has been disbursed across 114 applications, with a loan ceiling of up to Nu 10 million. These funds are intended to help small businesses diversify their offerings, modernize operations, and boost their competitiveness, which is crucial for driving Bhutan’s economy forward.
Additionally, the Medium Industries sector has seen disbursements totaling Nu 169.37 million for 6 applications, with loan ceilings ranging from Nu 10 million to Nu 100 million. The funds will assist medium-sized businesses in expanding their operations, increasing production capacity, and positioning themselves to compete both domestically and internationally. This support is particularly important for sectors such as manufacturing, which are integral to Bhutan’s industrial growth.
In addition to the direct loans, the ESP also offers a Business Reinvigoration Fund, which has approved 187 business proposals. These proposals are eligible for an interest subsidy of 4% on existing loans or top-up loans for up to 3 years. This initiative is aimed at providing additional financial relief to businesses that may be struggling to recover from past challenges, giving them the flexibility to continue operations and enhance their growth prospects.
The primary objective of the ESP is to stimulate new business creation, revitalize existing businesses, and enhance domestic production while creating jobs and increasing exports. With this financial support, Bhutan’s entrepreneurs now have greater access to capital, enabling them to invest in innovative projects and develop their businesses. Moreover, the loans are designed to reduce the nation’s reliance on imports by fostering local production across key sectors such as agriculture, manufacturing, and small industries.
While the approval of 832 loans is a step in the right direction, the government and financial institutions will need to continue working together to ensure the effective utilization of these funds. Ongoing support, including mentorship and market access, will be essential to ensuring that these businesses can sustain long-term growth and contribute to Bhutan’s economic prosperity.
Meanwhile, the Nu 473 million allocated under the ESP represents a pivotal effort by the government to support businesses in key sectors. By providing targeted loans to agriculture, small industries, and medium-sized enterprises, the program aims to foster economic resilience and job creation. With continued oversight and support, the ESP has the potential to unlock significant opportunities for Bhutanese businesses, driving economic growth and self-sufficiency in the years to come.
By Kinley Yonten
