The Bhutanese Leading the way.
In response to the growing impact of youth migration on businesses, public services, and national productivity, the government has unveiled one of the most ambitious economic revitalisation plans to date. The strategy focuses on creating meaningful employment opportunities within Bhutan to curb the outflow of educated youth and strengthen the domestic workforce.
The exodus of skilled youth has not only resulted in manpower shortages but also had visible economic consequences.
Once-bustling areas like Norzin Lam in Thimphu now face a steep drop in customers, forcing businesses to either shut down or struggle with loan repayments.
The State of the Nation Report warns that, if this trend continues, it will hinder economic productivity, strain public services, and slow overall progress.
While the push and pull of migration remains a complex issue, recent data provides some hope. Attrition in the civil service dropped sharply from 16 percent in 2023 to 6.3 percent this year. According to the report, “The Royal Civil Service Commission (RCSC) has successfully filled 8,788 vacancies as of 2024,” helping restore functionality to pre-pandemic levels. The National Reintegration Program has also gained momentum, with 573 Bhutanese registering and 170 already returning.
However, the government acknowledges that the root causes behind overseas migration, especially low wages and limited prospects, remain largely unresolved. “Strategic interventions are necessary to retain talent, strengthen domestic opportunities, and ensure sustainable development,” the report emphasizes, calling workforce migration not just an economic concern but a “national duty.”
With youth comparing opportunities in Bhutan to those in advanced economies, the only viable way forward is to match expectations through faster economic growth.
To tackle this, three key strategies have been identified: the Gelephu Mindfulness City (GMC), the 13th Five-Year-Plan (FYP), and the Bhutan 21st Century Economic Roadmap.
Leading the charge is His Majesty The King’s visionary project, the GMC, described as an “extraordinary initiative” founded on Gross National Happiness values and established as a Special Administrative Region.
Since its announcement in December 2023, the GMC has gained remarkable traction. The city’s master plan has been completed by international experts, and groundwork has started for its core infrastructure including the international airport, road networks, water systems, and zoning.
According to the report, “The GMC Authority has been formally established, with multidisciplinary teams working across multiple sectors including urban design, legal frameworks, investment attraction, and communications.”
GMC is not only a symbol of modern Bhutan, but also a spiritual and cultural anchor. Under His Majesty’s vision, the city is being developed as a Vajrayana Buddhist hub, with a Dzong, stupas, temples, meditation centers, and monastic schools in the pipeline. The government also highlighted promising investor interest across sectors such as digital finance, wellness tourism, green industries, education, and healthcare.
The Gelephu Nation Building Bond raised Nu 3.3117 billion (bn), surpassing its target before the deadline. Similarly, the GMC recruitment drive received an enthusiastic response from Bhutanese at home and abroad, reflecting the deep trust in His Majesty’s leadership.
The 13th FYP is the second pillar of this strategy and is the largest development plan Bhutan has ever undertaken. “This FYP is the biggest to date, with significantly larger programs and initiatives,” the report noted. With a total allocation of Nu 512 bn, of which Nu 245 bn is for capital expenditure, the plan is designed to double the country’s GDP.
Complementing this is the Economic Stimulus Programme (ESP), which is expected to create jobs, revitalize businesses, boost local production, and increase tourism. Efforts are also being made to attract Foreign Direct Investment (FDI) worth Nu. 500 billion to strengthen the economy further.
In appreciation of international partnerships, the government extended special thanks to development allies including the UN, World Bank, ADB, EU, and JICA. It also acknowledged the Government of India and Prime Minister Narendra Modi for their committed support of Nu 85 bn for the 13th FYP and Nu 15 bn for the ESP.
The third major initiative is the Bhutan 21st Century Economic Roadmap, launched in June 2025 to mark Her Majesty The Gyaltsuen’s birth anniversary.
Drawing from His Majesty’s 112th National Day Address, this “10X National Economic Vision” aims to transform Bhutan’s economy across critical sectors: agriculture, tourism, energy, manufacturing, digital economy, mining, and services.
“To ensure its success, we will strengthen policy and governance excellence and develop a deep talent pool within Bhutan,” the report emphasized.
Underpinning all these strategies is the guiding philosophy of His Majesty’s Diamond Strategy, an embodiment of visionary leadership that continues to shape Bhutan’s path in uncertain global times.
While challenges remain, the government’s response to youth migration and economic stagnation is now backed by clear goals, record investments, and a collective national commitment to progress.
