AGP Executive Report

Digital Procurement: Malaysian firm CDC shared AI procurement lessons at an ADB-backed conference in Thimphu, including a pilot that cut call-centre workload by 15–18%. Bitcoin Holdings: Bhutan’s mined reserve peaked at about 13,000 BTC in 2024, but Arkham-tracked wallets held 1,750 by June 2026. Authorities dispute the estimate, and the coins may have moved to untracked wallets. Business Leadership: Dr Trashi Wangyel was elected president of the Bhutan Chamber of Commerce and Industry. Market Expansion: Indian consumer-tech brand boAt has entered Bhutan; it says international revenue more than doubled in FY26. Regional Finance: Bhutan and Bangladesh’s central bank governors discussed bilateral trade and SAARCFINANCE cooperation in Bangkok. Investment: Bhutan has secured Nu 329.16 billion in FDI commitments, while India handed over Rs 290 crore for 13th Five Year Plan projects.

Regional Finance: Bhutan and Bangladesh’s central bank governors discussed stronger bilateral trade, financial cooperation and SAARCFINANCE on the sidelines of the IMF-World Bank meetings in Bangkok. India’s finance minister is also due to meet her Bhutanese counterpart there. Investment and Energy: Bhutan has approved Nu 329.16 billion in foreign investment projects. Separately, Druk Green Power and Adani Power are partnering on the 770MW Chamkharchhu-I hydropower project. Public Investment: India has handed over Rs 290 crore for projects under Bhutan’s 13th Five-Year Plan. Business Services: Thimphu Thromde has opened two payment centres and introduced a WhatsApp chatbot, bringing municipal services closer to residents and businesses.

Regional Finance: Bangladesh Bank Governor Md. Mostaqur Rahman and RMA Governor Yangchen Chhophel discussed strengthening SAARCFINANCE and expanding trade and financial cooperation at the IMF-World Bank meetings in Bangkok. Bhutan’s finance minister is also scheduled for bilateral talks with India’s Nirmala Sitharaman there. Market: Royal Securities Exchange turnover fell 60.4% in September to Nu 15.43 million, while shares traded dropped nearly 67% from August. Trade: Nepal raised BIS certification hurdles facing its exporters in talks with India, seeking easier access to a key market. Energy: Adani Power and Druk Green Power are partnering on the 770MW Chamkharchhu-I hydropower project, part of a broader 5,000MW clean-energy framework. Tourism: The Jomolhari Mountain Festival launched a sustainability plan backed by Nu 1 million in seed funding, aiming to build local ownership and economic opportunities for highland communities.

Capital Markets: RSEB trading value dropped 60.4% in September to Nu 15.43 million, while share volume fell 66.7%; the smaller declines in trades and active users point to lower transaction sizes. Investment & Energy: Bhutan has approved Nu 329.16 billion in FDI commitments, and Adani Power and Druk Green have agreed to develop the 770MW Chamkharchhu-1 hydropower project. DK Bank also received in-principle approval to expand into Abu Dhabi. Regional Cooperation: India handed over Rs 290 crore for Bhutan’s 13th Five Year Plan projects. Royal Thimphu College will host the Rethinking Economics Festival from October 15 to 18, focused on India-Bhutan cooperation. Economic Policy: The government has paused an electricity tariff revision for a sector-wide review and allocated Nu 400 million to support low-voltage consumers, while pursuing reforms to make credit more affordable.

India–Bhutan Funding: India handed Bhutan Nu 2.9 billion for 13th Five Year Plan projects in education, healthcare, infrastructure, digital skills and renewable energy. Investment: Bhutan has secured Nu 329.16 billion in foreign investment commitments, while DK Bank received in-principle approval to expand into Abu Dhabi. Hydropower: Druk Green and Adani Power are moving ahead with plans for the 770 MW Chamkharchhu-1 project, a major addition to Bhutan’s generation pipeline. Costs and Payments: The government has paused electricity tariff changes pending a sector-wide review and set aside Nu 400 million to cushion low-voltage users; meanwhile, Bhutan is working with Indian banks to address gaps in UPI payments from Bhutanese banking apps.

Agriculture & Innovation: Bhutan plans its first flow-through aquaponics pilot in Haa, combining rainbow trout farming with soilless vegetable production to reuse water and nutrients. Hydropower: ANDRITZ will supply turbine-generator units for the 600 MW Khorlochhu project. Separately, Druk Green and Adani Power have agreed to develop the 770 MW Chamkharchhu-I plant. Investment: Bhutan has secured Nu 329.16 billion in foreign-investment commitments, while DK Bank has received in-principle approval to expand into Abu Dhabi. Digital Payments: UPI payments from Bhutanese banking apps still fail at some Indian merchants because not all merchant banks are enabled; six Indian banks currently support the service. Access to Finance: The government says structural reforms aim to make credit more affordable, while the Finance Ministry and ADB are studying an asset-management company to address non-performing loans.

Digital Payments: Bhutanese users still face failed UPI transactions in India because some merchants’ banks do not yet accept payments from Bhutanese banking apps. Tourism: Bhutan won 11 honours at the 2026 South Asian Travel Awards, retaining its Best Leading Heritage Destination title and earning 10 awards for local hospitality businesses. Hydropower: ANDRITZ will supply turbines and generators for the 600MW Khorlochhu project, expected to produce 2.524 terawatt-hours of electricity a year. Trade & Connectivity: Bhutan and Northeast India are exploring stronger trade ties, while India and Bhutan discussed using the Brahmaputra and Jogighopa terminal to improve cargo links. Jobs & Investment: Nearly 1,000 young Bhutanese have completed Pelsung programmes in its first year, with the initiative now focusing on jobs and entrepreneurship. Bhutan has also approved FDI projects worth Nu 329.16 billion.

Regional Trade: Bhutan and Northeast India are looking to deepen commerce through better connectivity and trade facilitation. India has also proposed using the Brahmaputra and Jogighopa terminal as a potential freight gateway for Bhutan. Investment: Bhutan has secured licences and in-principle approvals for Nu 329.16 billion in FDI projects—65.8% of its Nu 500 billion target for 2029, though approvals are not capital already deployed. Hydropower: Adani Power and Druk Green Power have agreed to develop the 770 MW Chamkharchhu-I project, a major cross-border energy investment. Electricity Costs: The government has delayed proposed tariff changes pending a cost review and set aside Nu 400 million to support low-voltage consumers. Digital Payments: More than 8,600 Bhutan-linked UPI transactions have succeeded since September, but merchant and bank integration gaps still cause failures. Food Prices: Egg trays in Thimphu have climbed to Nu 560–600, putting pressure on household budgets.

Trade Connectivity: Bhutan and India are exploring Brahmaputra waterways and Assam’s Jogighopa terminal as a potential route for Bhutanese cargo to reach wider markets, with the Manas and Sankosh rivers also discussed. Foreign Investment: Bhutan has licensed or granted in-principle approval to FDI projects worth Nu 329.16 billion, about 66% of its Nu 500 billion target for 2029. The figure reflects project approvals, not capital already invested. Digital Payments: Bhutanese users have completed 8,621 UPI transactions since September, but failures persist at some Indian merchants as banks work on integration; six Indian banks currently support the service. Banking: DK Bank has received in-principle approval to expand into Abu Dhabi’s financial centre. Hydropower: Druk Green Power and Adani Power have agreed to develop the 770 MW Chamkharchhu-I project, extending Bhutan-India energy cooperation.

Trade Connectivity: Bhutan and India are exploring links to the Brahmaputra waterways and Jogighopa terminal, which could give Bhutanese cargo another route to global markets through Assam. Digital Payments: Bhutan has recorded 8,621 UPI transactions since September, but some payments still fail as Indian banks complete integration; six banks are enabled, with four more in the pipeline. Investment: Licensed and in-principle approved FDI projects total Nu 329.16 billion, or 65.8% of the government’s Nu 500 billion target for 2029. Banking: DK Bank has received in-principle approval to expand into Abu Dhabi, a step towards international growth. Energy: Druk Green Power and Adani Power have agreed to develop the 770 MW Chamkharchhu-I hydropower project. Separately, KEC International won a 400 kV transmission-line contract in Bhutan as part of Rs 1,030 crore in new orders. Economic Outlook: The Asian Development Bank expects Bhutan’s growth to accelerate to 7.2% in 2027.

Investment: Bhutan has licensed or given in-principle approval to FDI projects worth Nu 329.16 billion, or 65.8% of its Nu 500 billion target for 2029. The figure reflects approved project value, not capital already invested. Digital Payments: More than 8,600 UPI transactions have gone through since September, but some payments still fail as banks complete integration; Bhutan is coordinating with Indian banks to widen access. Banking: DK Bank has received in-principle approval to expand into Abu Dhabi’s financial hub. Energy: Druk Green and Adani Power have agreed to develop the 770 MW Chamkharchhu-I hydropower project, while KEC International has secured a 400 kV transmission-line order in Bhutan. Economic Outlook: The ADB expects Bhutan’s growth to accelerate to 7.2% in 2027. The government has also allocated about Nu 400 million to support low-voltage electricity consumers.

Digital Payments: Bhutan and Indian banks are working to reduce UPI payment failures. The service has completed 8,621 transactions since September, and six Indian banks currently support it; four more are expected to join. Foreign Investment: Bhutan has licensed or granted in-principle approval to FDI projects worth Nu 329.16 billion, equal to 65.8% of its Nu 500 billion target for 2029. The figure reflects approved project value, not capital already invested. Power and Infrastructure: The government has allocated about Nu 400 million this financial year to support low-voltage electricity users. KEC International has also won an order for a 400 kV transmission line in Bhutan. Hydropower: Druk Green Power Corporation and Adani Power have agreed to develop the 770 MW Chamkharchhu-I project. Banking: DK Bank has received in-principle approval to expand into Abu Dhabi, opening a potential route for international growth.

Electricity Support: The government has allocated Nu 400 million this financial year to help low-voltage electricity consumers as it reviews domestic tariffs. Power Grid: KEC International has won a 400 kV transmission-line order in Bhutan, part of a Rs 1,030-crore package that lifts its year-to-date orders above Rs 8,600 crore. Hydropower: Druk Green Power and Adani Power have agreed to develop the 770 MW Chamkharchhu-I project, adding to Bhutan’s major generation plans. Financial Expansion: DK Bank has received in-principle approval to establish an Abu Dhabi subsidiary, but needs a final licence before it can operate there. Regional Links: Bhutan and India are looking to deepen cooperation in trade and connectivity; talks also highlighted the Jogighopa terminal and waterways as potential routes for Bhutanese cargo to global markets.

Power & Infrastructure: KEC International won a 400 kV transmission-line order in Bhutan as part of ₹1,030 crore in new contracts, taking its year-to-date order intake above ₹8,600 crore. Financial Services: DK Bank received in-principle approval to set up an Abu Dhabi subsidiary offering brokerage, custody, payments and advisory services, subject to final licensing. The bank says the base could connect Gelephu Mindfulness City and Bhutan with global investors. Trade Links: Bhutan and India discussed using National Waterway-2, the Jogighopa terminal and the Manas and Sankosh rivers to improve cargo access to global markets. Hydropower: Adani Power and Druk Green Power agreed to develop the 770 MW Chamkharchhu-I project, adding to Bhutan’s major cross-border energy plans. Growth Outlook: The Asian Development Bank forecasts Bhutan’s economy will grow 7.2% in 2027.

Banking Expansion: DK Bank has received Abu Dhabi in-principle approval to establish a subsidiary offering brokerage, custody, payments and advisory services. It still needs a final licence before operations can begin, but the move could connect Gelephu Mindfulness City with international investors and capital. Power Projects: Adani Power and Druk Green Power signed an agreement for the 770MW Chamkharchhu-I hydropower project, a 49:51 partnership. Construction is expected to start in the first half of 2027, with commissioning targeted six years later. Infrastructure Orders: KEC International won a contract to build a 400kV transmission line in Bhutan, helping lift its year-to-date order intake above ₹8,600 crore. Trade Links: Bhutan and India discussed using National Waterway-2 and the Jogighopa terminal to connect Bhutanese cargo with global markets, alongside possible use of the Manas and Sankosh rivers.**

Investment: US Ambassador Sergio Gor met Bhutan’s King and Prime Minister to discuss investment and cooperation, with Gelephu Mindfulness City highlighted as a potential focus for deeper US engagement. Finance: DK Bank won in-principle approval to establish an Abu Dhabi subsidiary offering brokerage, custody, payments and advisory services; it still needs a final licence before operating. Energy: Druk Green Power and Adani Power signed a shareholders’ agreement for the 770 MW Chamkharchhu-I hydropower project in Zhemgang, with construction expected to begin in 2027. Digital payments: Bhutan’s central bank and Cambodia’s National Bank agreed to work towards cross-border payments, building on Cambodia’s Bakong platform. Growth outlook: The ADB expects Bhutan’s economy to grow 7.2% in 2027.