Despite signs of economic recovery and growth, Bhutan continues to face two significant challenges that could affect long-term development: the continued outmigration of Bhutanese citizens and rising global fuel prices, according to the Prime Minister’s State of the Nation Report.
The report emphasized that while efforts to strengthen the economy are yielding results, the country must address these challenges to achieve economic self-reliance.
The Prime Minister described migration as an “existential crisis.”
“At present, more than 71,000 Bhutanese are working overseas, most of them young, educated, and skilled,” Lyonchhen said, adding that the departure of a large number of youths directly affects the country’s economy and workforce.
At the same time, the Prime Minister acknowledged that overseas employment also brings benefits.
Bhutanese returning from abroad contribute valuable skills, knowledge and international exposure that can strengthen the domestic economy.
The report noted that remittances sent home by Bhutanese working overseas reached USD 342.94 million in 2025, providing a significant contribution to the national economy.
Lyonchhen stressed that addressing the outmigration challenge ultimately depends on creating a stronger and more vibrant economy within the country.
“When we say the economy is important, it means that we Bhutanese ourselves must take responsibility for strengthening it,” the PM said. Lyonchhen further added, “The economy will not develop on its own and certainly not with a few experts coming in to help us. The responsibility of developing our economy rests solely and fully with us.”
The second major concern highlighted in the report is the increase in global fuel prices arising from the ongoing conflict in West Asia.
According to the report, the conflict has disrupted international supply chains and led to fuel shortages in several countries.
However, Bhutan has continued to receive petroleum products without interruption due to support from the Government of India.
The Prime Minister also noted that His Majesty The King’s Fuel Price Kidu has helped cushion the impact of rising fuel costs on citizens.
Looking ahead, the government is preparing a National Energy Security Strategy aimed at reducing the country’s dependence on imported petroleum products. The strategy seeks to increase the use of domestically generated electricity and strengthen Bhutan’s energy security.
The Bhutanese Leading the way.