𝐖𝐨𝐫𝐥𝐝 𝐁𝐚𝐧𝐤 𝐀𝐩𝐩𝐫𝐨𝐯𝐞𝐬 $𝟑𝟎𝟎 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐭𝐨 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐆𝐫𝐨𝐰𝐭𝐡 𝐚𝐧𝐝 𝐉𝐨𝐛 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧

… $300 𝒎𝒊𝒍𝒍𝒊𝒐𝒏 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈 𝒕𝒐 𝒊𝒎𝒑𝒓𝒐𝒗𝒆 𝒓𝒆𝒈𝒊𝒐𝒏𝒂𝒍 𝒄𝒐𝒏𝒏𝒆𝒄𝒕𝒊𝒗𝒊𝒕𝒚 𝒂𝒏𝒅 𝒄𝒓𝒆𝒂𝒕𝒆 𝒎𝒐𝒓𝒆 𝒋𝒐𝒃 𝒐𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔 𝒇𝒐𝒓 𝒚𝒐𝒖𝒕𝒉 𝒂𝒏𝒅 𝒅𝒊𝒔𝒂𝒅𝒗𝒂𝒏𝒕𝒂𝒈𝒆𝒅 𝒈𝒓𝒐𝒖𝒑𝒔

The World Bank’s Board of Executive Directors has approved a new Country Partnership Framework (CPF) for Bhutan, covering fiscal years 2025-2029, alongside US$300 million in financing to enhance regional trade and connectivity. The financing is aimed at improving Bhutan’s infrastructure and supporting economic growth, particularly by creating more and better job opportunities for Bhutanese citizens.

Aligned with Bhutan’s 13th Five Year Plan, the CPF emphasizes the creation of quality jobs, accelerating economic growth, and preserving Bhutan’s unique cultural and natural heritage. The framework’s main objectives include increasing private investment, improving climate resilience, and developing resilient infrastructure to enhance connectivity across the country.

Cecile Fruman, Acting World Bank Country Director for Bhutan, remarked, “Good jobs are the cornerstone of development. The central focus of the new CPF is helping create more and better jobs at a time when the country is facing high levels of youth unemployment and outward migration. This framework will support the government in achieving its growth and development goals by unlocking private investment and supporting reforms to create quality jobs and opportunities.”

The CPF highlights the importance of improving the investment climate in sectors that can generate significant employment, such as renewable natural resources, agribusiness, tourism, digital, and creative industries. It also focuses on improving access to finance and payment systems to further expand market potential in these sectors. Additionally, the framework supports health, education, and skills development, which are crucial for job creation.

Imad N. Fakhoury, Regional Director for South Asia at the International Finance Corporation (IFC), emphasized, “Unlocking the potential of the private sector, alongside the public sector, is essential for driving job creation and economic progress in Bhutan. Through the CPF, the World Bank Group will focus in partnership with the Royal Government of Bhutan on critical reforms that will mobilize private investment and create opportunities across sectors such as sustainable energy, digital economy, hospitality and tourism, agribusiness, and micro, small, and medium enterprises.”

Recognizing Bhutan’s status as the world’s first carbon-negative country, the CPF also prioritizes climate resilience. It proposes significant support for enhancing energy access, building resilient infrastructure, and financing the government’s plans to expand hydropower and other renewable energy generation.

In line with these objectives, the World Bank also approved $300 million for the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) Phase 2 project. This initiative will improve regional trade, transport, and digital connectivity in Bhutan by investing in green and resilient infrastructure, digital systems for trade, and institutional strengthening. Key components include the construction of the Gelephu to Tareythang Road, a vital link along the Southern East-West Highway, and the development of a National Single Window for Trade. These efforts are expected to reduce import/export clearance times by 25% and travel time along the project corridor by 70%.

The CPF is the result of extensive consultations with key stakeholders in Bhutan, including the government, private sector, civil society, think tanks, and citizens. With the World Bank’s increased engagement in Bhutan in recent years, the new framework aligns with the country’s ambition to achieve upper-middle-income status by 2029.

The $300 million financing will provide crucial support to Bhutan’s infrastructure development and economic growth, ensuring that more and better job opportunities are created, particularly for women, youth, and disadvantaged groups.