A milestone for Bhutan’s Private Sector, says BCCI President

A milestone for Bhutan’s Private Sector, says BCCI President

According to the BCCI President, this is the first time the government has invited the private sector for talks on plans

The government is consulting, collaborating and incorporating the private sector to achieve a GDP of USD 5 billion by 2029 and USD 10 billion by 2034. As part of this effort, the government has consulted with the private sector on their long-term plans for the 13th plan.  This is the first time that the government has sought private sector input.

The BBCI’s President remarked that the Aum Tashi Wangmo, secretary of the Ministry of Labour and Human Resources (MoLHR), now known as Ministry of Industry, Commerce and Employment (MoICE) had paid them a visit on March 24th to discuss the 13th Plan and that they were also asked to submit their private sector recovery plan. 

The BCCI has presented their Private Sector Recovery Plan (PSRP) to help revive the economy and support the private sector, which has suffered losses of over Nu 125.81 billion due to the Covid-19 pandemic. 

The PSRP’s guiding principles include inclusiveness of rural businesses, technological inclusiveness, and integration of the Bhutanese private sector into the Fourth Industrial Revolution.

The PSRP proposes a series of actions and initiatives to minimize the pandemic’s impact, including access to fiscal incentives and finances, fostering public-private partnerships, and building globally competitive human capital in every sector. 

 The plan also includes initiatives to promote e-commerce and efficient e-payment gateway systems, and a tech-meet to accelerate FDI in the ICT sector.

The BCCI will collaborate with sector associations to build a stronger domestic value chain and foster greater public-private partnerships across all sectors. 

The PSRP will be developed through engagement with the private sector across the country, with an aim to encourage firms to operate, workers to return to their jobs, and motivate consumers.

Meanwhile, according to the draft plan, the long-term perspective plan (2024-2034) aims to double the country’s GDP from USD 2.5 billion to USD 5 billion by 2029 and to USD 10 billion by 2034. The plan is aligned with the goal of achieving a “developed Bhutan” by 2034 and includes ten national key performance indicators (KPIs) based on the principles of prosperity, people, and progress.

The KPIs cover economic, social, security, and governance clusters and aim to increase the share of the digital economy to GDP to 10% by 2029, increase manufacturing’s share of GDP from 6% to 15%, and increase private sector investment from 40% to 60% by 2034. Other targets include increasing GDP per capita and household income and meeting critical requirements domestically.

The president of BCCI, Tandy Wangchuk, said the government was impressed with the PSRP as it aligned very well with the government’s long-term 13th five-year plan. Wangchuk added that the government needs a collective effort and private sector’s support to achieve the targeted GDP, which the private sector positively acknowledged.

Wangchuk stated, “We did long term 13th FYP, and this is in the history of BCCI as of now for the last 3-2 decades, we have not received such consultation. The reason for their collaboration is to achieve a GDP of USD 5 billion by 2029 and USD 10 billion by 2034.” 

The President acknowledged that the government needs the collective effort and support of the private sector to achieve these targets.

The President also said, “The government’s collaboration with the private sector highlights its commitment to work together to achieve Bhutan’s development goals. By leveraging the strengths of both the public and private sectors, the country can create sustainable economic growth that benefits all Bhutanese citizens.”

Subsequently, the government is working with the private sector to achieve a GDP of USD 5 billion by 2029 and USD 10 billion by 2034. 

The private sector has presented a recovery plan that aligns with the government’s long-term plans, highlighting the importance of collaboration between the public and private sectors to achieve Bhutan’s development goals.

Tshering Pelden from Thimphu