As Bhutan approaches a crucial election, the country’s political parties – Bhutan Tendrel Party (BTP), Druk Phuensum Tshogpa (DPT), Druk Nyamrup Tshogpa (DNT), Druk Thuendrel Tshogpa (DTT), and People’s Democratic Party (PDP) – have laid out distinctive visions for propelling the growth of the private sector. Each party’s strategy reflects a commitment to fostering economic development, with a strong emphasis on collaboration, infrastructure, regulatory reforms, and inclusive growth.
Bhutan Tendrel Party (BTP): Collaboration and Innovation
BTP’s strategy revolves around collaboration, recognizing the symbiotic relationship between governance and business. The party aims to strengthen the partnership between government agencies and businesses, fostering a business-friendly environment. Key elements include the innovative “Register First and Regulate Later” concept, simplified tax systems, and a commitment to clear and consistent regulations. BTP aspires to attract a minimum of USD 1 billion in Foreign Direct Investments (FDI) by 2029, emphasizing sectors like finance, manufacturing, ICT services, education, and agriculture.
Druk Thuendrel Tshogpa (DTT): Infrastructure Focus
DTT places a strategic focus on infrastructure projects through the proposed Infrastructure and the Project Economy Act. This act aims to streamline contractors, ensuring transparent bidding processes for national, Dzongkhag, and Gewog levels. The party prioritizes the private sector for economic development and proposes the establishment of the Economic Development Agency (EDA) to address shortcomings in the Economic Development Policy (EDP). DTT acknowledges the critical role of infrastructure in Bhutan’s development, defining capital raising for projects and allocating risks through Public Private Partnerships (PPPs).
People’s Democratic Party (PDP): Comprehensive Economic Development
PDP’s vision encompasses comprehensive economic development, with a primary focus on attracting Foreign Direct Investments (FDI). The party proposes the establishment of Special Economic Zones (SEZs) and Export Processing Zones, aiming to create a favorable environment for FDIs. PDP commits to reviewing and revising policies hindering FDI inflow, creating an enabling policy landscape, and significantly improving the ease of doing business. Recognizing the crucial role of Cottage and Small Industries (CSIs), PDP outlines initiatives to support their financial needs and proposes a Nu 15 billion stimulus plan for the private sector’s revival and growth.
Druk Phuensum Tshogpa (DPT): Boosting Private Sector Contribution to GDP
DPT aims to boost the private sector’s contribution to GDP to at least 50 percent, emphasizing comprehensive taxation reforms, the establishment of a Private Sector Development Council, and an improved business environment. Initiatives include streamlining regulations, promoting entrepreneurship, improving physical infrastructure, protecting intellectual property rights, and facilitating trade routes with India. DPT envisions an enabling environment for businesses, striving to reduce bureaucratic hurdles and create conditions for businesses to thrive.
Druk Nyamrup Tshogpa (DNT): Progressive and Inclusive Growth
DNT envisions an economy characterized by progressive and inclusive growth. Short-to-medium term commitments include exempting Business Income Tax (BIT) for small and micro businesses, establishing a National Economic Development Board, expanding hydropower and solar power capacity, and revising taxation policies for export competitiveness. DNT commits to reducing business turn-around-time, increasing FDI, and providing easy access to credit for identified sectors.
As Bhutanese citizens prepare to cast their votes, these diverse economic visions underscore the significance of the private sector in shaping the country’s future. Each party’s commitment to collaboration, infrastructure, regulatory reforms, and inclusive growth reflects the dynamic landscape of Bhutan’s economic development.
By Kinley Yonten
