A study commissioned to assess the financial and operational sustainability of the country’s industrial parks has found that several parks and estates face weak cost recovery and operational challenges, including idle plots, delayed commencement of industries, rising operating costs and late lease payments.
According to the Department of Industry’s Annual Industry Report 2025–2026, the current government-led management model for industrial parks requires reform to improve their long-term financial and operational sustainability.
The study assessed six government-developed and managed industrial parks and estates, examining revenue generation, operating expenditure, infrastructure utilisation, management practices and financial performance. While Pasakha Industrial Estate was found to have strong financial performance, the study identified significant differences among the parks.
The report recommends diversifying revenue sources, reducing operating costs, strengthening lease compliance and payment enforcement, and promoting industrial symbiosis. It also proposes piloting public-private partnership or outsourced service models in selected parks and adopting demand-driven planning and greater private-sector participation in future industrial park development.
The six industrial parks and estates managed by the Department of Industry cover more than 915 acres and have 178 allotted industries across different scales and sectors. They include Bjemina and Pasakha industrial estates and Dhamdhum, Norbugang, Phuntshorabtenling and Changchay industrial parks.
However, high land occupancy does not always translate into operational industries.
Dhamdhum Industrial Park, for instance, had an occupancy rate of 77.5 percent, but only 24 of its 68 allotted industries were operational, giving it an operational rate of 35.3 percent. Another 19 industries were under construction, while seven were undergoing licence processing and nine were processing land lease certificates and drawing approvals.
Norbugang Industrial Park had an occupancy rate of 74.96 percent, but only four of its 10 allotted industries were operational. The remaining six were under construction.
Bjemina Industrial Estate recorded 100 percent occupancy and an operational rate of 81.3 percent, with 26 of its 32 allotted industries operational. Pasakha Industrial Estate recorded 99.25 percent occupancy and an operational rate of 78.4 percent, with 29 of its 37 allotted industries operational.
Pasakha also generated the highest revenue among the six facilities, earning Nu 56.98 million during the 2025–26 financial year. It employed 2,511 workers, according to the report’s performance indicators. Bjemina generated Nu 3.52 million and employed 284 workers.
Phuntshorabtenling Industrial Park recorded an operational rate of 53.8 percent, with 14 of its 26 allotted industries operating. It generated Nu 12.81 million in revenue and employed 1,014 workers. Norbugang, despite having only four operational industries, generated Nu 19.34 million and employed 1,434 workers.
Dhamdhum generated Nu 5.81 million in revenue and employed 195 workers, with the report noting that many of its allotted industries remained under construction or were still obtaining operational clearances.
Changchay CSI Park recorded no operational industries, revenue or employment during the reporting period, while two industries were being allotted land and processing business licences.
The report says industrial parks are intended to attract domestic and foreign investment, generate employment and support economic diversification by providing industries with infrastructure such as roads, power, water and waste-management facilities.
Infrastructure development continued during the year. At Norbugang, roads, drainage networks, street lighting, cable ducts, water distribution infrastructure and other facilities were developed, while its water supply scheme remained under construction. At Phuntshorabtenling, several projects supported through DANTAK with Government of India support, including a road to the landfill, river training works and staff quarters, were completed.
The Department also spent Nu 7.47 million on professional security services across Dhamdhum, Phuntshorabtenling, Pasakha and Bjemina during the financial year.
Meanwhile, as of June 20, 2026, Bhutan had 31,952 active industrial licences. However, 95.7 percent were cottage and small industries, while medium industries accounted for about 2.9 percent and large industries just 1.4 percent. The report says the relatively stagnant share of medium and large industries highlights the need to attract and scale larger industrial investments.
New domestic medium and large industrial project approvals also fell from 109 in 2024–25 to 67 in 2025–26, a 38.5 percent decline. Of the 67 approved projects, 55 were medium-scale and 12 were large-scale.
The study recommends a shift in how industrial parks are planned and managed, with greater emphasis on financial sustainability, efficient use of industrial land and stronger private-sector participation.
While established estates such as Pasakha and Bjemina are operating at high occupancy and operational levels, the varying performance of newer parks highlights the challenge of ensuring that industrial land and infrastructure translate into active businesses, employment and sustainable revenue.
Nidup Lhamo, Thimphu
