The private sector is spearheading the development of a Proposal on Private Sector Engagement in the 13th Five-Year Plan (FYP). This initiative is aligned with the plan’s vision to adopt a ‘government-facilitated, private sector-led’ growth model, as outlined under the Economic Development Cluster. The ultimate aim is to position the private sector as the “engine of growth” for Bhutan’s economic development.
The proposal development is being led by the Bhutan Chamber of Commerce and Industry (BCCI) with support from the Voice for Green Change Partnership (V4GCP) project, funded by the European Union and coordinated by the Handicrafts Association of Bhutan (HAB). The BCCI Committee of Sector Associations (BCSA), a private-sector think tank, is at the helm of the initiative. The BCCI is engaging a broad spectrum of private sector associations and economic groups, both formal and informal, to collaboratively draft the proposal.
The document will outline the private sector’s contributions to the 13th FYP’s national programs and strategies.
“Our objective is to support the government in realizing the goals of the 13th FYP, particularly those that involve our sector,” said Tandy Wangchuk, President of BCCI. “This is the first-of-its-kind initiative where the private sector asserts its role as the ‘engine of growth’ for Bhutan’s economy.”
Khampa, Project Management Specialist for the V4GCP project, highlighted the opportunity presented by the 13th FYP. “This plan offers a unique chance for the private sector to collaborate with the government. Our project aims to empower the private sector—particularly CSIs (cottage and small industries)—to engage meaningfully in policy and governance processes, paving the way for a sustainable, inclusive, and resilient economy.”
The 13th FYP identifies four key clusters: economic development, social development, security, and transformed governance. While the private sector plays a central role in the Economic Development cluster, it also aims to support the government in achieving objectives across all clusters.
“The 13th FYP aims to achieve a GDP of USD 5 billion by 2029 and attain the status of a ‘High-Income GNH Country’ by 2034,” noted Chandra Bdr. Chhetri, Secretary General of BCCI. “These ambitious targets require robust partnerships between the government and private sector. Our proposal seeks to streamline and amplify the private sector’s contributions to ensure a unified and significant impact.”
To ensure alignment with national priorities, the BCCI plans to consult with government ministries and agencies to understand their specific programs and activities. “We hope government agencies will embrace this opportunity for collaboration and partnership with the private sector,” added Tandy Wangchuk.
The government’s commitments under the Economic Development cluster include creating a conducive business ecosystem by streamlining regulations, establishing one-stop service delivery points, reforming licensing and tax frameworks, enhancing access to finance, and privatizing state-owned enterprises (SOEs) through public-private partnerships (PPPs). Additional focus areas include nine identified growth drivers, 21st-century skilling programs, and ecological diversity and resilience initiatives.
Beyond economic development, the private sector will extend its support to initiatives under the Social and Security clusters.
Under the Transformed Governance cluster, the private sector seeks to strengthen Government-to-Business (G2B) platforms, simplify policies and regulations, advocate for legal reforms with the Parliament, and collaborate with CSOs and media to highlight its role in economic management. Additionally, the private sector aims to advance the digital economy and align its efforts with the cross-cutting principles of gender equality, environmental sustainability, climate change, disaster resilience, and poverty reduction. Collaboration with local governments to boost local economies will also be prioritized.
“This initiative is a historic milestone for Bhutan’s private sector,” said Chorten Dorji, Project Director and Executive Director of HAB. “If successful, this partnership between the government and private sector could serve as a model for other nations to emulate.”
Private sector players from diverse industries—including tourism, manufacturing, education, production, services, creative arts, farming, entrepreneurship, health, and ICT—are invited to contribute to the proposal.
The finalized proposal is expected to be presented to the government in April 2025.