Recognizing the importance of the private sectors in driving the country’s economic development, the government has allocated budget for the private sector development from the Economic Stimulus Plan (ESP). This was reiterated by several ministers as answers to the opposition, which claims that the ESP is not yet earmarked and nothing is clear on its use.
The Finance Minister, Lekey Dorji, highlighted the crucial role that the private sector plays in the country’s economic development. The minister said that the government has allocated a significant budget from ESP for private sector development. According to the minister, the government is also exploring alternative solutions to outsource services to the private sector.
The government also aims to improve the foreign direct investment to Nu 500 billion and is working with JICA on connecting the public-private partnership; including privatizing health dialysis services to boost the private sector.
The Minister of Industry, Commerce, and Employment (MoICE), Namgay Dorji, also emphasized the importance of the private sector as an engine of economic development, starting from the beginning of the 8th Five-Year Plan (FYP). The minister stated that the focus is on increasing the contribution of the manufacturing sector to GDP to 15% and increasing the private sector’s share to 50–60% by the end of the 13th FYP.
According to the minister, the ESP is primarily focused on business and manufacturing sectors, with plans to provide low-interest or interest-free loans based on business categories under this scheme. The minister also announced that there are plans to make it easier for businesses to access loans and other benefits.
The minister also said that in the economic cluster, the government has set ambitious targets for economic growth, aiming to increase GDP to 5 million economies and achieve 97% full employment. “To achieve this, the government has revised all complicated procedures for the private sector and is reviewing comprehensive business regulatory frameworks.”
The Health Minister, Tandin Wangchuk, shared that the important factor in developing the private sector is ease of doing business, but noted that there are many complicated procedures that have to be followed in our country.
According to the Minister, it will be an inconvenience if government allocates separate money for private sector development. “However, with the flow of money to the market and ESP’s aims of providing low-interest loans, it is expected to boost the private sector,” the minister said, adding that in addition to the revised policy and easy access to financial.
The Prime Minister, Dasho Tshering Tobgay said that creating employment opportunity is crucial for the private sector development. The Prime Minister said that for that, the government has allocated Nu 60 billion for construction sectors. “For the construction sector, we have allocated Nu 60 billion, which will eventually lead to contractors getting more work and automatic development of private sectors,” the PM said.
The Prime Minister also highlighted opportunities for the private sector to grow through support from the tourism sectors. “With plans to reduce air fees, revise policies, and focus on marketing to increase tourist numbers. This will create more job opportunities and benefit hoteliers, travel agents, and business owners, leading to the development of the private sector,” the Prime Minister added.
The government is also focusing on developing agriculture and livestock production, which the Prime Minister said will also lead to developing the private sector. “Additionally, we have allocated Nu 10 billion to improve digital platforms and provide opportunities for the private sector growth.” The Prime Minister expresses confidence that these efforts will drive significant growth in the private sectors.
By Nidup Lhamo, Thimphu
