The Bhutanese Leading the way.
PM to visit India soon at the invitation of the Indian PM
PM says in tourism first task is to increase numbers of visitors
PM also talks of foreign reserves and what will happen after loan deferral period ends
A major task and the biggest challenge for the new government will be raising the funds for the 13th Five Year Plan (FYP) currently estimated at Nu 512 bn (which could change) and the Nu 15 bn Economic Stimulus Plan (ESP) separate from the 13th FYP.
A source said that the 9 ministries were already working on incorporating the various PDP pledges in the plan and they would present it to the cabinet by around 15th February.
The presentation will mention the priority areas and what the funds are available for.
The whole thing will be presented and the government will have to decide.
The finance ministry has been tasked to come up with the resource mobilization strategy for the plan.
The Prime Minister Dasho Tshering Tobgay said the government is in the process of finalizing the 13th FYP and each and every sector is very carefully being looked at and once it is finalized they will have a good sense of how much needs to be mobilized, how much of it can come from domestic resources and how much we will need to be sought from grants and what the balance looks like.
The PM said that for the balance amount beyond the above, Bhutan will seek innovative financing which is looking beyond traditional methods and resources.
Giving the example of innovative financing he said in the 2013-2018 term the government had come up with the Nu 5 bn ESP, Bhutan for Life which is still benefiting us, strengthening and expanding the Bhutan Health Trust Fund to provide for procurement of essential drugs and also the Bangladesh PM Sheikh Hasina providing one years’ worth of essential drugs to Bhutan for free.
The PM said that there are many options available and we cannot continue along the same approach as times are changing and there are many opportunities to use if we think outside the box.
Lyonchhen said that in the context of raising funds for the 13th plan the Indian Prime Minister Narendra Modi had already sent him an invitation to visit Delhi and the PM said he is hoping to go at the earliest at the host’s convenience as India is one of our biggest donors and supporters of Bhutan’s developmental journey.
Even for the 13th plan Lyonchhen said he would personally seek their generosity and support again.
On the Nu 15 bn ESP the PM said that they need to finalize the framework and guidelines and then they want to discuss and seek the support of the Government of India and also Prime Minister Modi personally.
The Prime Minister on his first day of office sent an executive order on the establishment of a high-level task force to formulate the implementation plan for the 15 bn ESP. The plan is to be submitted by 1st March 2024.
The task force is led by the RMA Governor and has the Finance Secretary, Ministry of Industry Commerce and Employment (MoICE) Secretary, T- Bank head as the President of the Financial Institutions Association of Bhutan (FIAB), BDBL CEO since agriculture will be an important part of it and the Cabinet Director.
The task force will see how best the money can be used to stimulate the economy.
With the loan deferrals coming to an end by June end 2024 the PM said they will listen to the banks, listen to the people and business community, take stock of the economy and take a collective decision in the interest of the economy and the country. He said what is clear is that all start to need working hard.
A banker said that a way forward is for the banks to already start doing their homework and so future deferment if any should be only for genuinely hit sectors and those who can pay should pay.
Three of the PM’s Directives to the ministries are on tourism with the first and second directives being to the MoICE to develop an action plan to increase the number of tourists and promoting tourism in the border towns and the third being to the Ministry for Foreign Affairs and Trade (MoFAT) to use embassies and consuls to promote tourism.
Lyonchhen said the first order of business is to get more tourists to visit the country and a lot needs to be done from policies to streamlining procedures and making regulations business friendly and looking at issues like border control, airports, guides, drivers, hotels and restaurants.
He said a lot needs to be done and relevant officials have already been tasked to take care of specific responsibilities but he said his immediate focus now is marketing and he said he has already asked for recommendations on how he as the PM can start marketing Bhutan as a tourist destination.
The PM said he would start this marketing with his India visit which would also be his first foreign visit.
An official said that the foreign reserves have not breached the limit set by the previous government.
On the Foreign Reserves the PM said it requires a lot of attention and he has given his views on the matter. Talking about his meeting with the RMA he said they have decided to work together to explore avenues to increase reserves and there are a lot of possibilities from enhancing FDI investments to import substitutions and not just using the words like before but really meaning it.
The PM said they are identifying areas where they can reduce imports even at the micro level and encourage local businesses.
