The Bhutanese Leading the way.
The government has earmarked Nu 1.9 billion (bn) for the mining and manufacturing sector in the FY 2026-27 budget, signaling a push to modernize industrial capacity and secure national energy reserves.
The allocation is a strategic component of the government’s plan to boost resource utilization and stabilize the labor market.
Strengthening trade and energy security
A significant portion of the budget focuses on “de-bottlenecking trade through infrastructure development.
Nu 114.8 million (mn) is set aside to complete the Norbugang Industrial Park and expand the Nganglam Dry Port.
Furthermore, funds are allocated to bring both the Pasakha and Nganglam dry ports into full operation, facilitating smoother cross-border commerce.
To protect the economy against global supply chain shocks, the government is investing Nu 193 mn into fuel stockpiling. This includes Nu 98 mn for direct infrastructure.
Nu 95 mn to leverage private storage for emergency fuel supplies, ensuring the nation remains resilient during external disruptions.
Strong ambitions
The mining subsector is eyeing a massive leap, with a target to more than double its GDP contribution, from Nu 4.1 bn to Nu 9.0 bn by the end of the 13th Five-Year Plan (FYP).
To achieve this, Nu 105 mn will fund high-tech mineral exploration, which will move beyond traditional methods by utilizing drones and advanced mining software for surveys and mapping. These technical upgrades are paired with regulatory reforms designed to encourage more private sector participation.
The employment mandate
With a national goal of full employment, the sector has been granted Nu 234.4 mn to keep overall unemployment at 2.5 percent and youth unemployment below 10 percent.
The funding will support 5,500 young Bhutanese through the Youth Engagement and Livelihood Program and Overseas Employment initiatives.
Tourism target of 218,000 arrivals
While industrial growth scales up, the government is simultaneously doubling down on tourism with a Nu 255.8 mn injection. The objective is clear – reach 218,915 tourist arrivals by the end of the 2026-27 fiscal year.
The strategy includes digital transformation through the implementation of an integrated digital tourism system to streamline the visitor experience.
It will also explore development of specialized tourism products and fresh branding.
Nu 60.8 mn has been specifically earmarked to settle airfare subsidy obligations, ensuring Bhutan remains a competitive destination in the regional market.
