In 2024, Druk Holding Investment’s (DHI) revenue increased from Nu. 10,551.1 million 2023 to Nu. 10,983.9 million, an increase of 4.1 percent. Additionally, in 2024, the total assets of DHI grew by 21.9 percent to Nu. 97,490.3 million from Nu. 79,996.2 million in 2023.
According to the Budget Report (2025-2026) the increase in revenue was mainly due to the increase in dividends from subsidiary companies by 3.1 percent (from Nu. 9,986 million in 2023 to Nu. 10,319.4 million in 2024). However, the expenditure increased by 18 percent (from Nu. 289.5 million in 2023 to Nu. 341.6 million in 2024). The increase was mainly caused by an increase in the employee related cost. During the year, DHI contributed Nu. 8,636.3 million to domestic revenue in the form of taxes (Nu. 3,577.3 million) and dividend (Nu. 5,059 million), which is an increase of 30.8 percent as compared to the previous year mainly on account of increase in dividend from State Mining Corporation Limited (SMCL), Bhutan Power Corporation Limited (BPCL) and Royal Insurance Corporation of Bhutan Limited (RICBL).
The total revenue (taxes and dividend combined) contribution from DHI amounted to 13.6 percent of the total domestic revenue. In 2024, the total assets of DHI grew by 21.9 percent to Nu. 97,490.3 million from Nu. 79,996.2 million in 2023. It was mainly attributed to an increase in investment and capital work in progress.
As a group (where subsidiary companies’ revenues and expenditures are consolidated), DHI generated a gross revenue of Nu. 94,517.4 million, an increase of 26.4 percent from Nu. 74,764 million in 2023. Similarly, the profit after tax exhibited a growth of 30.8 percent, rising to Nu. 17,989.6 million from Nu. 13,757.2 million in 2024. Concurrently, the contribution to the national exchequer through taxes increased to Nu. 8,194.5 million, compared to Nu. 5,798.9 million in 2023.
Meanwhile State Owned Enterprises (SoEs) posted gross revenue of Nu. 112,650.9 million, 22.9 percent higher compared to Nu. 91,651.1 million in 2023. The expenditure incurred was Nu. 74,126.1 million. The profit after tax was Nu. 25,127.8 million, an increase of 15.2 percent from Nu. 21,806.7 million in the prior year. Accordingly, the SOEs contributed Nu. 11,860.6 million and Nu. 5,272.3 million in the form of tax and dividend respectively.
In 2024, SOEs under MoF (excluding DHI and including CIB and FITI), posted a net profit of Nu. 75.2 million. The dividend contribution decreased from Nu. 213.2 million in 2023 to Nu. 83.9 million in 2024. Similarly, the CIT also decreased from Nu. 174 million to Nu. 88.9 million during the same period. As of December 2024, the combined net asset of SOEs stands at Nu. 8,367.9 million, an increase of 1.8 percent as compared to the previous year.
In the FY 2023-24, Nu. 976.6 million was transferred as subsidies, which is a decrease of 21.4 percent as compared to the previous year. Of the total subsidies provided, Nu. 344.5 million was transferred to SOEs under MoF (BBSCL, FMCL, NHDCL, BLDCL) and Nu. 562.7 million was transferred to the DHI companies (BPC, DACL, RICBL).
The overall SOEs debt increased from Nu. 48,274.2 million to Nu. 92,694.7 million in 2024. The increase was mainly due to a substantial increase in borrowing by DGPC from Nu. 8,005.3 million in 2023 to Nu. 48,663.5 million in 2024.
In terms of exposure, based on the shareholding pattern, the government’s share of SOEs debt was 96.4 percent of the total SOEs debt amounting to Nu. 89,382.1 million.
The SOEs are established to play important roles in supporting socio-economic development and redistributing publicly owned resources. Currently, the Government has various shareholding in 32 companies, of which 10 are directly held by the MoF, including Druk Holding Investments (DHI), and the other 22 are DHI subsidiaries.
Of 10 SOEs under the MoF, 8 are wholly-owned and 2 are majority-owned. The MoF also has minor shareholdings in Credit Information Bureau and Financial Institutions Training Institute Limited.
DHI is a fully-owned government holding company. It is the commercial arm of the government with a mandate “to hold and manage the existing and future investments of the government for long-term benefit of the people of Bhutan”. DHI currently holds shares in 22 companies operating in various sectors of aviation, communication, energy, financial, manufacturing, natural resources, real estates and trading. Of the 22 portfolio companies, 10 are fully owned, 5 are controlled with more than 51 percent shareholdings and 7 are linked companies with less than 51 percent shareholdings.
Tashi Namgyal from Thimphu
