AGP Executive Report

Peace Index Watch: Iceland has topped the Global Peace Index for a 19th straight year, with Bhutan ranking 16th globally—good news for travellers who care about stability, not just scenery. Bhutan’s Demography Crunch: Bhutan’s outmigration and falling birth rates are now flagged as a “greatest national risk” in the State of the Nation Report, even as GDP rises and financing gaps close. Tax System Audit: A Royal Audit Authority special audit finds major procurement and planning problems in BITS 1.0, including direct awards without open bidding, raising concerns over value for money and transparency. Disaster Preparedness: Thimphu ran a full-scale earthquake simulation, testing rescue, evacuation and hospital emergency response for a potential magnitude 7.5 quake. Border Trade Bottlenecks: A new review says 54 regulatory hurdles are slowing business in Phuentsholing and Samtse, where most imports enter Bhutan. Public Safety & Justice: US Homeland Security says it arrested a Bhutan national convicted in Pennsylvania for assault and sexual abuse. Education & Nutrition: 467 schools will get enhanced feeding and nutrition support in 2026–27, including more Green Kitchens.

National Security & Regional Stability: A fresh look at South Asia’s shifting risks and resilience comes as Bhutan’s own development debate turns sharper. Demography & Development: Prime Minister Tshering Tobgay warns that continued outmigration is Bhutan’s “greatest national risk,” even as GDP rises and financing gaps close. Public Finance & Tax Tech: A Royal Audit Authority special audit flags major procurement and planning failures in the Bhutan Integrated Taxation System (BITS 1.0), including direct awards without open bidding, with losses tied to the flagship digital push. Local Governance & Trade: A Bhutan Chamber of Commerce and Industry review says 54 regulatory hurdles are slowing business in Phuentsholing and Samtse, from licensing and GST frictions to delays and infrastructure gaps. Disaster Preparedness: Thimphu tests earthquake readiness through a full-scale simulation of a magnitude 7.5 quake. Health & Education: 467 schools get enhanced feeding and nutrition support, including 20 upgraded “Green Kitchens.” Public Health Rules: Bhutan tightens its smoking ban in public areas with fines. Sports & Gambling: Authorities reiterate the World Cup betting warning under Bhutan’s strict anti-gambling stance. FDI & Jobs: The 2026–27 priorities include Nu 3.5bn FDI targets, digital expansion, and jobs for 5,500 youth.

Peace Index Watch: Bhutan ranks 16th globally and 5th for freshwater per person, standing out as Asia’s lone Top 10 freshwater country—useful context for travellers and planners. Border Business Bottlenecks: A Bhutan Chamber of Commerce and Industry review flags 54 regulatory hurdles in Phuentsholing and Samtse, from licensing and GST frictions to delays, skills shortages, and weak trade infrastructure. Human Capital Push: The State of the Nation Report says 467 schools will get enhanced feeding and nutrition support in 2026–27, including 20 upgrades with “Green Kitchens.” Digital Growth Drive: Bhutan targets Nu. 3.5 billion FDI alongside digital expansion and jobs for 5,500 youth under 2026–27 priorities. Public Health Enforcement: BFDA tightens the smoking ban in designated public areas with Nu 500 fines. Culture & Community: Kuensel Phodrang hosts the month-long Kathrid Empowerment in Thimphu, drawing devotees nationwide. Local Governance & Oversight: Parliament calls for a joint review of an audit provision in the Co-operatives and Farmer Groups Bill. Heritage at Risk: Residents warn the centuries-old Changyul Bum Galem house in Punakha is worsening after cracks and a recent quake, urging urgent intervention.

Kathrid Empowerment: Thousands of Bhutanese devotees have gathered at Kuensel Phodrang in Thimphu for the month-long Kathrid Empowerment and Kyilchog Dorji Threngwa, with people travelling early each day for blessings from His Holiness the Je Khenpo. Co-operatives Bill Review: The National Assembly has referred an audit provision in Bhutan’s Co-operatives and Farmer Groups Bill for joint review, after concerns about expanding auditing authority to Dzongkhag internal auditors. Public Smoking Ban Tightened: BFDA has issued a strict nationwide ban on smoking in designated public areas, with enforcement backed by fines of Nu 500 per incident. World Cup Betting Warning: Authorities have reiterated Bhutan’s long-standing ban on gambling and betting of all forms except the state lottery, as World Cup fever spreads. FDI and Jobs Push: In the State of the Nation Report, the government targets Nu 3.5 billion in FDI, digital expansion, and jobs for 5,500 young people under the 2026–27 priorities. Third Child Plus Moving Ahead: OCASC has identified 5,458 eligible mothers for the Third Child Plus allowance and is verifying details ahead of the first Nu 10,000 monthly disbursement. Gelephu Investor Signal: Parliament adopted Bhutan’s Double Taxation Avoidance Agreement with Singapore, aimed at boosting investor confidence for Gelephu Mindfulness City. Local Skills for Live Events: Bhutan’s first formal “Live Sound” training programme has been completed in Thimphu to strengthen technical capacity for the growing creative industry. Insurance Licensing Pause: RMA has imposed a six-month moratorium on new insurance company licensing proposals while regulatory reforms are reviewed.

Digital Identity: Bhutan has joined the 50-in-5 campaign to strengthen privacy-preserving digital ID through the Bhutan NDI, aiming to build trusted digital foundations for public and private services. FDI & Jobs: In the State of the Nation Report, PM Tshering Tobgay said the government will target Nu. 3.5 billion in FDI, expand the digital economy, boost agriculture, and create jobs for 5,500 youth under eight national priority programmes. Public Health Crackdown: BFDA tightened enforcement of Bhutan’s smoking ban in all designated public areas, with a Nu 500 fine for violations and clear rules for shops and commercial centres. Family Support: OCASC has identified 5,458 mothers for the Third Child Plus allowance; details are being verified and the first Nu 10,000 monthly payments are expected by month-end. Gelephu Mindfulness City: Parliament adopted a Double Taxation Avoidance Agreement with Singapore to boost investor confidence for GMC; meanwhile, 108 Jangchub Chortens groundwork ceremonies began across multiple sites. Tech & Governance: Bhutan’s Government Technology Agency hosted the Tech Solutions Connect Forum to showcase locally built digital tools, while the RMA imposed a six-month moratorium on new insurance licensing proposals.

Local Economy & Ease of Doing Business: Bhutan’s National Entrepreneurship Strategy 2026 aims to cut business licensing to within three working days, improve access to finance, and expand entrepreneurship programmes in schools and colleges. Tourism Gateway Upgrade: Phuentshogling is set to get tourism branding and digital media tools to position the border town as a clean, safe, experiential gateway for travellers. Hydropower & Energy Security: Druk Green Power Corporation (DGPC) highlights its role as Bhutan’s sole hydropower producer, meeting domestic demand and driving major government revenue and export earnings. Culture & Heritage Funding: Religious organisations are urging higher gewog grants for temple and heritage preservation, saying current allocations are delaying maintenance and activities. Disaster Impact on Trade: Recurring flooding at Amochhu in Phuentshogling is disrupting road access, delaying permits, and stranding vehicles and workers, hitting exporters hard. Digital Skills Push: Youth Tech-Novation Hackathon 2026 showcased Bhutan’s young innovators building digital solutions, reaching hundreds of participants through youth centres and colleges. Wellness Tourism: Bhutan’s Department of Tourism is promoting five wellness and recovery experiences, blending yoga, meditation, monasteries, hot stone baths, and nature-based recovery.

Business & Jobs: Bhutan’s National Entrepreneurship Strategy 2026 aims to cut business licensing to within three working days, boost access to finance, and expand entrepreneurship support in schools and colleges. Innovation in Gelephu: Pelsups pitched 30 ideas for Gelephu Mindfulness City, including bamboo supply plans to reduce imports and app-based emergency alerts for disasters like floods and elephant attacks. Tourism & Borders: Phuentshogling is set to get tourism branding and a digital media platform to make the border gateway “clean, safe and experiential,” with a dedicated website for visitors. Culture Funding: Religious organisations want gewog grants for heritage preservation raised, saying current allocations delay temple and monastery maintenance. Health Spending: Bhutan’s health ministry and the World Bank discussed ways to reduce wasteful spending, citing inefficiencies and the need for better purchasing and resource allocation. Hydropower Economy: DGPC highlights its role in meeting domestic power demand and driving government revenue and foreign exchange through hydropower exports. Digital Youth: A Youth Tech-Novation Hackathon showcased digital solutions, training hundreds of young people through youth centres and colleges. Disaster Readiness: At an ABU AI Forum in Paro, broadcasters discussed using AI responsibly for disaster communication, while Bhutan explores its role in public broadcasting. Flood Disruption: Recurring Amochhu floods in Phuentshogling are delaying permits and stranding exporters and labourers, with knock-on effects for transport rules.

Hydropower & Energy Security: Druk Green Power Corporation (DGPC) remains Bhutan’s sole hydropower producer, meeting domestic demand and contributing about a fourth of government revenue, with exports to India driving roughly 31% of foreign exchange earnings. Bhutan is also looking to scale installed capacity to around 25,000 MW by 2040 to meet rising needs. Tourism Branding & Digital Push: Phuentshogling is set to get a tourism makeover as the Prime Minister’s Advisory Team signs a contract for destination branding and a digital media platform, including a dedicated tourism website to help travellers and locals explore the border town. Wellness Tourism Launch: Bhutan’s Department of Tourism has introduced five wellness and recovery experiences—yoga and meditation, monastery retreats, hot stone baths (menchu), and Himalayan trekking—positioning the country for recovery-focused travel. Culture & Heritage Funding: Religious organisations are urging higher gewog grants for temple and heritage preservation, saying current allocations are too small to keep up with maintenance and renovation needs. Floods Disrupt Trade: Recurring Amochhu floods in Phuentshogling are stranding vehicles and delaying export operations, with exporters and labourers facing permit and access problems. Creative Exchange: GHAMMAK™’s inaugural India–Bhutan Cultural Music Exchange brought Bhutanese artists and media professionals to Mumbai for a week of collaboration, performances, and industry engagement.

Hydropower & energy planning: Druk Green Power Corporation (DGPC) says it supplies Bhutan’s full domestic power demand and contributes about a fourth of government revenues, while exports to India remain key—now Bhutan is looking to scale installed capacity to around 25,000 MW by 2040 to meet rising needs. Tourism at the border: Phuentshogling is set to be repositioned as a clean, safe gateway, with a new contract to build tourism branding and digital media tools, including a dedicated website for visitors. Health after treatment: Bhutan Cancer Society is pushing stronger support for survivors as Cancer Survivor Month approaches on June 26, focusing on life beyond treatment. Neonatal care: A new study highlights that the rate at which total bilirubin rises after birth can better predict newborn risk from jaundice, aiming to improve early identification. Heritage funding push: Religious organisations want gewog grants for preserving temples and heritage increased, saying current allocations are delaying maintenance and renovations. Digital youth drive: Young innovators showcased digital solutions at the Tech-Novation Hackathon 2026, building skills through youth centres and colleges. Flood disruption in Phuentshogling: Recurring Amochhu flooding is repeatedly stranding vehicles and delaying permits, hitting exporters and workers hard.

War on Science: A new look at how conflict doesn’t just smash labs and people, but erases the research culture itself—highlighting the deeper loss when science is “unmade.” Digital Payments: After Nepal, South Africa is eyeing India’s UPI model to push a cashless economy, with the Reserve Bank chief calling it low-cost and citizen-friendly. Bhutan Health Spending: Bhutan’s health expenditure rose sharply from 2021 to 2025, and the health ministry with the World Bank discussed how to cut wasteful spending and improve efficiency. Natural Wool Revival: Training in natural wool dyeing aims to revive Yathra weaving in Bumthang as sheep-rearing declines. Cultural Heritage Funding: Religious organisations want higher gewog grants to speed up temple and heritage maintenance, saying current allocations are too tight. Flood Disruptions: Recurring Amochhu floods in Phuentshogling are delaying exporters and labour permits, with vehicles stranded and access repeatedly cut. Tech for Youth: A Youth Tech-Novation Hackathon showcased digital solutions and skills-building for Bhutan’s young innovators. Tourism Upgrades: A digital readiness programme found many Bhutan hotels struggle with Google listings, outdated websites, and weak online responses. Gelephu Sacred Project 108: Work continues on Project 108 in Gelephu Mindfulness City, with preparations for consecrated inner relics underway in Sarpang Dzong.

Disaster Preparedness: ICIMOD warns that even with a weaker 2026 monsoon under El Nino, Bhutan and the wider HKH region face high risks of flash floods and landslides as intense bursts and rising temperatures can hit hard. Health Spending Efficiency: Bhutan’s health ministry and the World Bank discussed ways to cut waste in health financing after spending rose sharply from 2021 to 2025, focusing on better purchasing and smarter resource use. Medical Waste Management: DGHS and UNOPS held a workshop on sustainable medical waste systems, tackling gaps in infrastructure, operations, and coordination. Culture & Heritage Funding: Religious organisations are pushing for higher gewog grants to protect temples, monasteries and heritage sites, saying current allocations delay repairs. Digital Skills for Youth: A Youth Tech-Novation Hackathon showcased young innovators’ digital solutions, building on a wider programme training hundreds of participants. Floods Disrupt Trade: Recurring Amochhu floods in Phuentshogling are stranding exporters’ vehicles and delaying labour permits. Tourism & Online Presence: A digital readiness programme finds many Bhutan’s three-star hotels struggle with Google listings and outdated websites, limiting bookings. Energy Security Dialogue: Indo-German partners discussed renewable energy as a route to energy security and resilience. Gelephu Sacred Project: Preparations for Project 108 in Gelephu Mindfulness City continue, with Zung inner relic work underway at Sarpang Dzong.

Monsoon Watch: ICIMOD warns that even with below-normal monsoon rains in the Hindu Kush Himalaya, Bhutan and neighbours still face high risks of flash floods and landslides from short, intense downpours. Digital Tourism: A digital readiness programme finds many Bhutanese three-star hotels can’t fully manage Google listings, social pages and outdated websites—hurting visibility and bookings online. Civil Service Tech: Bhutan launched its first civil service robot, Zhiyop, at RCSC’s Innovation Day in Thimphu, able to answer questions from the first five chapters of the Civil Service Rules. Project 108: In Gelephu Mindfulness City, preparations for Zung inner relics are underway for the 108 Jangchub Chortens, with relic scriptures being rolled by hand in Sarpang Dzong. Pay Revision: Bhutan’s National Assembly signals a new pay revision process may start after a pay commission review, as inflation pressures public servants. Diplomacy: Bhutan officially recognised Croatia, paving the way for fresh bilateral cooperation in diplomacy, culture and tourism.

Climate & Disaster Risk: ICIMOD warns that even with a weaker monsoon forecast for parts of the Hindu Kush Himalaya—including Bhutan—short bursts of intense rain can still trigger flash floods and landslides, while heat and water stress raise drought risk at the same time. Digital Tourism Push: A digital readiness programme says many Bhutan hotels, especially three-star properties, struggle to manage Google listings, social media and outdated websites—hurting visibility and bookings online. Civil Service Tech: Bhutan launched its first civil service robot, Zhiyop, at RCSC’s Innovation Day in Thimphu, able to answer questions from five chapters of the Bhutan Civil Service Rules and Regulations via voice commands. Economic Planning: The State of the Nation report outlines eight priority programmes for 2026-27, targeting FDI, new startups and industries beyond Thimphu, plus new tourism packages and a Red Panda Tourism Flagship Programme in Haa. Pay Revision Watch: Government says a fresh pay revision is expected soon, but only after a pay commission assesses economic feasibility. Education Funding Debate: A parliamentary panel says higher education allocations are “underwhelmed” and urges spending to reach 6% of GDP under NEP-2020.

Climate & Disaster Watch: A new HKH monsoon outlook warns that even with below-normal rainfall, Bhutan and neighbours face high risks from short bursts of intense rain, flash floods and landslides, as rising temperatures and water stress pile on. Local Governance & Public Service Tech: Bhutan launched its first civil service robot, Zhiyop, at RCSC’s Innovation Day in Thimphu, able to answer questions from five chapters of the Bhutan Civil Service Rules and Regulations. Media & Climate Resilience: The 10th ABU Media Summit on Climate Action and Disaster Prevention opened in Paro, pushing broadcasters to share timely, preparedness-focused information. Tourism & Trade: Bhutan’s BITM 2026 signals a shift toward structured international partnerships, while Bhutan and Singapore deepened agri-food ties with the first Mini Bhutan Market in the city-state. Health, Water & Demographics: Safe water filtration is expanding across Bhutan’s schools and institutions, and the Third Child Plus Program now offers Nu 10,000 monthly for third (and later) children under age three. Economy & Finance: The government is set to review Bhutan’s lending rate framework with the RMA to tackle high borrowing costs. Education & Youth: Police are investigating an alleged student battery case at Lungtenzampa Middle Secondary School, with students suspended and counselling underway.

Climate & Disaster Watch: The WMO launched its “State of the Climate in Asia 2025” report in Paro, warning that dangerous heat, extreme rainfall and glacier loss are already hitting Asia hard, with ocean heat and marine heatwaves at record levels—raising stakes for early warning and coordinated action. Public Service Tech: Bhutan unveiled its first civil service robot, “Zhiyop,” at the RCSC Innovation Day in Thimphu, able to answer questions from five chapters of the Bhutan Civil Service Rules and Regulations, with plans to expand its knowledge base. Media & Resilience: The 10th ABU Media Summit on Climate Action and Disaster Prevention opened in Paro, bringing broadcasters and policymakers together to push for faster, more proactive disaster communication. Education Funding Debate: A parliamentary panel says higher education allocations are “underwhelmed” and urges spending to reach 6% of GDP under NEP 2020. Finance & Business Costs: Bhutan’s government will review lending rate rules with the RMA and banks to see if borrowing costs can be reduced without destabilising the financial sector. Demographics Support: The Third Child Plus Program launched, offering Nu 10,000 per month for third and subsequent children until age three. Local Safety: Thimphu Police are investigating an alleged student battery case at Lungtenzampa Middle Secondary School, with students suspended and psychosocial support arranged. Tourism Partnerships: Bhutan’s BITM 2026 signals a shift toward structured international buyer partnerships to strengthen “high value, low volume” tourism. Water Access: A Safe Water Initiative expansion is bringing filtration support to more Bhutanese schools and institutions, aiming for universal clean water access by 2030. Agriculture & Trade: Bhutan and Singapore deepened agri-food ties as Bhutan’s first Mini Bhutan Market opened in Singapore. Weather Risk for HKH: ICIMOD warns that even with below-normal monsoon forecasts for parts of the Hindu Kush Himalaya—including Bhutan—flash floods, landslides and drought-flood swings remain a serious risk.

Climate & Disaster Risk: ICIMOD warns that even with a weaker monsoon forecast for Bhutan and the wider Hindu Kush Himalaya, short bursts of intense rain can still trigger flash floods and landslides, with drought and flood risks rising together. Green Jobs & Skills: A new South Asia study says “green jobs” are already a big slice of employment, and many workers may only need to adapt existing skills rather than switch careers entirely. Bhutan Finance: Bhutan’s Ministry of Finance has directed the Royal Monetary Authority to review the lending rate framework, including the Minimum Lending Rate and expected credit loss rules, amid calls for cheaper credit. Women in Education Services: Bhutan’s education consultancy sector is increasingly driven by women, who make up most staff in education placement and visa support firms. School Safety: Thimphu police are investigating an alleged battery case involving students at Lungtenzampa Middle Secondary School; students were suspended and psychosocial support arranged. Digital Identity Push: Bhutan has joined the 50-in-5 campaign to strengthen privacy-preserving self-sovereign digital ID and other digital public infrastructure. Tourism & Trade: Bhutan wrapped up its first Bhutan International Travel Mart with 200+ international buyers, while Bhutan and Singapore also moved to deepen agri-food ties with a Mini Bhutan Market opening in Singapore.