In a strategic move aimed at fostering a more business-friendly environment and stimulating economic growth, the Ministry of Industry, Commerce, and Employment (MoICE) has initiated a comprehensive review of business regulatory processes.
The decision comes in response to concerns raised by the private sector regarding bureaucratic hurdles and inefficiencies, highlighting various challenges faced by businesses in Bhutan.
In conversation with MoICE Lyonpo Namgyal Dorji, he shared, “Initially, the Ministry aimed to tackle business regulatory processes within its jurisdiction. However, the concerns raised by the private sector extended beyond MoICE’s direct purview, encompassing broader issues that span multiple ministries and agencies. Recognizing the comprehensive nature of these challenges, the ministry has opted to thoroughly examine all concerns submitted by the private sector. Collaborative efforts with relevant ministries and agencies are underway to formulate recommendations that address the wide array of identified challenges. This inclusive approach ensures a cohesive and comprehensive response to business environment issues, engaging multiple stakeholders for effective solutions.”
The challenges, compiled by MoICE in collaboration with the Bhutan Chamber of Commerce and Industry (BCCI), sector associations, and other stakeholders, encompass a spectrum of issues.
Key concerns raised by the private sector include multiple and complex regulatory requirements, lengthy approval procedures, ambiguity in processes, inconsistent enforcement, and the need to adapt regulations to present market conditions.
To address these issues comprehensively, the ministry has formed a committee chaired by the Secretary of MoICE, with members representing government agencies, the Royal Monetary Authority (RMA), financial institutions, corporations, BCCI, and sector associations. The committee has been tasked with deliberating on the identified challenges and formulating recommendations for enhancing the regulatory landscape.
In a move towards inclusivity and stakeholder engagement, a two-day consultation meeting was held on February 19th and 20th, 2024.
The event, supported by the Handicraft Association of Bhutan and the V4GCP project funded by the European Union, saw active participation from over 50 private sector representatives.
The attendees shared their perspectives on the challenges faced, allowing for a constructive dialogue between the private sector and relevant government ministries, agencies, and departments.
The consultation meeting also provided a platform for representatives from relevant government ministries, agencies, and departments to validate and clarify the issues raised by the private sector. Subsequently, the committee will consolidate the input gathered and finalize a report containing actionable recommendations for the government’s consideration.
Recognizing the need for transparency and accountability throughout the review process, the ministry is initiating dialogues with the private sector, seeking public feedback on proposed changes, and providing regular updates on the progress of the review activity. The Ministry emphasizes the importance of maintaining open channels of communication with stakeholders to ensure an inclusive approach.
As the review progresses, MoICE acknowledges potential challenges such as time constraints, conflicting stakeholder priorities, and resource limitations. However, the Ministry is committed to overcoming these obstacles through effective stakeholder engagement, robust communication strategies, adaptive management approaches, and evidence-based decision-making.
The effectiveness of any regulatory changes will be monitored post-implementation through key performance indicators, impact assessments, and regular reviews to ensure continuous improvement and a conducive business environment in Bhutan.