AGP Executive Report
Last update: 9 hours agoBhutan Economy & Energy: Bhutan’s economy grew 8.52% in real terms in 2025, driven by stronger electricity generation after the Punatsangchhu-II hydropower plant came online, alongside gains in finance, construction and ICT. Tourism Demand: Bhutan’s tourism rebound stayed strong in July, with international arrivals nearly doubling year-on-year to 14,913, led by Indian visitors (65.5%). Business Reforms: Government says it has accelerated policy, regulatory and industrial reforms to improve the business climate, attract investment and support cottage and small industries, including eased FDI rules and faster approvals. EV Policy: Bhutan will assess the EV market before adding incentives for private buyers, even as EVs keep favourable tax treatment under recent reforms. Food Safety & Imports: BFDA tightened mango import controls after calcium carbide was detected in some consignments, expanding lab testing and risk-based oversight. Banking Oversight: RMA is reviewing Bhutan National Bank after reports of double deduction of annual maintenance charges affecting 54,000+ account holders, with possible penalties if lapses are found. Mining Prospects: A nationwide airborne survey flagged promising copper and tungsten targets (plus rare earth and geothermal potential), but officials stress ground studies are needed to confirm viability. Education Access: MoESD is intensifying efforts to curb school dropouts and non-enrolment, citing poverty, migration, distance and learning difficulties. Trade Risk Advisory: India’s DGFT issued a caution to exporters and banks over two Bhutan-based firms, urging heightened vigilance and due diligence.
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