The Ministry of Finance (MoF) has disbursed a total of Nu 1.8 billion (B) in concessional loans to various sectors across Bhutan as of October 2025. These funds are part of the Concessional Credit Line (CCL), a key initiative aimed at supporting industries, stimulating economic growth, and creating employment opportunities nationwide.
As of October, the Ministry had approved approximately 2,314 applications worth Nu 3.1B, of which Nu 1.8B has already been disbursed to 1,862 projects. The disbursements focus primarily on three sectors: agriculture and livestock, production and manufacturing (including cottage and small industries), and medium-sized industries.
Agriculture and Livestock Sector
Agriculture and livestock sector received the highest level of support. The Ministry approved around 1,985 projects valued at Nu 743 million, of which Nu 655M has been disbursed, assisting farmers and livestock owners in enhancing productivity and livelihoods.
A total of 3,252 applications were received from this sector, amounting to Nu 3.2B. Of these, 1,267 applications totaling Nu 1B were declined, reflecting the strong demand for financial assistance among farmers and livestock producers.
Cottage and Small Industries (CSIs)
Cottage and small industries also benefitted significantly from the CCL. The Ministry approved 208 projects valued at Nu 240M, disbursing Nu 182M to 201 projects. This support is aimed at promoting local artisans, entrepreneurs, and small-scale industries, which play a crucial role in rural development and economic diversification.
In total, Nu 500M has been allocated for the cottage and small industry sector, reflecting the government’s commitment to nurturing grassroots enterprises.
Film and Media Production
The film and media sector received an allocation of Nu 200M, with Nu 3M disbursed to a single project as of October. A further 43 projects, totaling Nu 217M, are pending disbursement. Supporting the media and creative industries aligns with Bhutan’s broader goals of promoting culture, tourism, and entertainment.
Medium Production and Manufacturing
Medium-sized production and manufacturing industries have also benefited from the CCL. The Ministry allocated Nu 1.8B for this sector, receiving 153 applications totaling Nu 7.6B. Of these, 41 projects worth Nu 1.9B were approved, with Nu 869M already disbursed to 32 projects. This sector, comprising larger manufacturing industries, plays a significant role in boosting economic growth and generating employment.
Disbursement Trends by District
Applications and disbursements vary across districts. As of August 2025, Chukha led with 519 applications, followed by Thimphu with 460. Zhemgang recorded the fewest applications at just 68.
In eastern Bhutan,Trashigang received 294 applications, Mongar 197, and Tashiyangtse 125, while Pemagatshel submitted only 65. These figures indicate strong regional engagement, particularly in districts with active agricultural and industrial sectors.
Economic Stimulus Plan (ESP)
In addition to the CCL, Bhutan’s Economic Stimulus Plan(ESP) continues to support the economy. The ESP Secretariat has received Nu 10B from the government, which was disbursed in four installments, including Nu 2.5B from the Government of India as of October 1, 2025. Nu 5B remains pending, with disbursement contingent on project progress and effective utilization of funds.
Job Creation and Economic Impact
The government estimates that the ESP could generate nearly 4,000 jobs, highlighting its focus on employment creation. While the exact figures will be determined once projects are fully operational, the initiative demonstrates a strong commitment to expanding opportunities for Bhutanese citizens.
Meanwhile, the disbursement of Nu 1.8B through the CCL underscores the government’s dedication to fostering inclusive economic growth. By supporting agriculture, small industries, media, and manufacturing, these initiatives aim to strengthen local industries, boost employment, and contribute to Bhutan’s economic stability in the coming years.
Sherab Dorji
FromThimphu
