AGP Executive Report

Solar Push for Bhutan: ADB approved a $160m loan for Bhutan’s Solar Farm Expansion, backing at least 310MW of new capacity and grid upgrades, with projects in Bumthang and Lhuentse. Renewables on the Ground: Construction has started on a 100MW solar project in Samdrup Jongkhar’s Tashithang Gewog, aimed at boosting winter generation. Waste-to-Cash Recycling: Reverse vending machines in Gelephu, Paro and Phuentshogling have recovered over 7 million containers and paid users about Nu 14m, with calls for stronger policy to sustain recycling. Local Economy & Tourism Branding: Phuentsholing is getting a destination branding and digital tourism push to reposition the border town as a clean, safe visitor stop. Thimphu Integrity & Spending: A new NSB report finds households spend about Nu 27,689 a year on rituals, with Wangdue and Punakha highest. Wildlife Rescue: A trapped Asiatic black bear was freed from a wire snare in Bumdeling Wildlife Sanctuary and returned to the wild. Regional Context: Nepal welcomed 621,624 international tourists in the first half of 2026, with India the top source market.

Bhutan Sports: Bhutan hosts the 16th South Asian Bodybuilding and Fitness Championships in Thimphu, with Afghanistan’s Maiwand Babakarkhel winning gold and Riyaz Rahman Ehsan taking silver on the opening day, as the country fields a 15-member team. Bhutan Education & Skills: The first batch of Bhutanese PhD scholars in Climate Studies graduated from the College of Natural Resources in Lobesa, Punakha, marking a push to build local climate research capacity. Bhutan Hospitality: Phuentshogling hotel staff are being assessed and certified under Recognition of Prior Learning to raise service standards across housekeeping, cooking, front office and food & beverage. Bhutan Development & Tourism: Government signed a contract to brand and digitise Phuentsholing’s tourism push under the Phuentsholing Thromde Enhancement Programme, aiming to turn the border town into a destination. Regional Payments: NPCI partnered with HSBC India and JP Morgan Payments to enable real-time FX settlement for cross-border UPI transactions, while UPI volumes in India moderated in June to ₹28.9 lakh crore but stayed strongly up year-on-year. Fuel Costs: India cut ATF by ₹5 per litre from July 1, alongside revised export duties on petrol, diesel and ATF. Integrity & Governance: ACC-linked reporting flags ongoing concerns around favouritism and trust gaps even as integrity performance remains relatively strong.

Bhutan Integrity & Governance: ACC says Bhutan’s integrity score improved, but favouritism and a trust deficit remain concerns. Digital Census Prep: Bhutan is gearing up for PHCB 2027, set to be the country’s first fully digital census using CAPI for faster, cleaner data collection. Wildlife & Conservation: A nationwide musk deer survey in Bhutan using nearly 500 camera traps across 17 dzongkhags is completed, while global reporting highlights pangolins as the world’s most trafficked mammals and points to a newly identified Asian pangolin species in Nepal and northern India. Public Health & Safety: WOAH reports African swine fever outbreaks are declining overall, but notes recurrence in Bhutan’s Samtse and Chhukha. Hospitality Skills: Phuentshogling hotel workers are being assessed and certified under Recognition of Prior Learning to raise service standards. Regional Tech Cooperation: PTA hosted a South Asian telecom policy meeting in Islamabad with Bhutan among participants. Regional Economy & Trade: India’s corn exports are set for a three-year high, with Bhutan among buyers; UPI payments in India moderated in June but kept strong annual growth.

Bhutan-India ties & development: Japan has shifted its Bhutan development cooperation toward a human security approach, focusing on resilience, balanced rural-urban growth and stronger livelihoods. Bhutan economy & private sector: Bhutan launched a National Entrepreneurship Strategy 2026 aimed at turning startups into growth engines, tackling barriers like inactive licenses and limited scaling support. Digital payments across borders: NPCI says UPI transactions in India moderated in June to Rs 28.9 lakh crore, while daily averages hit a record 757 million; NPCI also partnered with HSBC India and J.P. Morgan Payments for real-time FX settlement in overseas UPI payments, with UPI already live in Bhutan. Governance & integrity: Experts met in Thimphu to discuss better ways to measure anti-corruption effectiveness, including political finance transparency and AI tools. Environment & wildlife: Bhutan completed a nationwide musk deer survey using nearly 500 camera traps across 17 dzongkhags, and ranked fifth globally for freshwater resources per capita. Regional telecom cooperation: PTA hosted a South Asian telecom regulators meeting in Islamabad with Bhutan among participants to coordinate policy and regulation.

Integrity Watch: Bhutan’s National Integrity Assessment 2025 shows a strong overall score of 8.16/10, but ACC flags lingering issues like favouritism, ethical leadership gaps and a trust deficit. Education Reform: The Ministry of Education confirms the Cambridge-aligned curriculum will be fully rolled out across secondary schools by 2027, shifting progression from exam-only results to competency-based assessment. Digital Payments: UPI is now live in Greece, expanding India’s cross-border payment reach; Bhutan is already among UPI-connected countries. Climate Resilience: JICA reaffirms support for Bhutan’s disaster preparedness and climate resilience, including better meteorological observation and flood warning for Paro and Thimphu basins. Urban Safety: A new geotechnical study is guiding safer, climate-resilient development in Phuentsholing, supported by UNDP and disaster-resilient infrastructure partners. Local Economy: Tsirang farmers in Thakorling Chiwog get a dedicated, disability-friendly vegetable market facility along the Tsirang–Sarpang highway. Regional Cooperation: Bhutan has begun construction of its Nu.160 million temple complex in Lumbini, strengthening cultural and diplomatic ties with Nepal.

Bhutan Integrity Watch: Bhutan’s Sixth National Integrity Assessment (NIA) 2025 puts the country’s overall integrity score at 8.16/10 (“Good”), with public sector integrity at 8.41 (“Very Good”), but ACC flags lingering concerns around favouritism, ethical leadership and a trust deficit. Urban Resilience: Thimphu’s earthquake simulation found gaps in emergency coordination, communications, medical readiness and logistics, urging stronger training, clearer reporting and better equipment. Health Education: KGUMSB plans a new MBBS campus at Gidakom to expand Bhutan’s medical training capacity as the first home-trained doctors are expected to graduate in 2028. Local Governance & Women: Thromde election nominations show women make up nearly 40% of Tshogpa and Thrompon candidates, but only one woman is running for Thrompon—leaving Phuentshogling’s top race male. Economy & Living Costs: Bhutan starts implementing renewable energy tax exemptions, and GST changes now remove 5% tax from more essential items to ease cost of living. Heritage & Culture: Bhutan has begun construction of its Nu.160 million temple complex in Lumbini, strengthening Buddhist ties and pilgrimage links. Power Sector: DGPC, BPC and Hyosung sign an MoU to strengthen maintenance and technical capacity for gas insulated switchgear systems. Agriculture Markets: Tsirang farmers in Patshaling’s Thakorling Chiwog get a dedicated, disability-friendly vegetable market facility along the Tsirang-Sarpang highway.

Integrity & Trust: Bhutan scored 8.16/10 in the Sixth National Integrity Assessment (NIA) 2025—its second-highest ever—showing very strong public sector integrity, but ACC warns perceptions of corruption, favouritism, ethical leadership and a trust deficit are still rising. Health & Education: KGUMSB plans a new MBBS campus at Gidakom to expand medical training as Bhutan prepares to graduate its first home-trained doctors in 2028; RUB also proposes shifting funds to speed up international accreditation for colleges. Disaster Readiness: A full-scale Thimphu earthquake simulation found gaps in emergency coordination, communications, medical preparedness, traffic management and logistics, with delays and unclear reporting lines flagged. Local Governance: Women make up nearly 40% of Thromde Tshogpa and Thrompon candidates in Thimphu and Phuentshogling, but only one woman is running for Thrompon. Cost of Living: GST exemptions expanded to 31 everyday items, including key staples, with relief applied retroactively from June 25. Renewables Push: A new Renewable Energy Tax Exemption Act offers time-bound tax breaks to cut costs and attract investment toward 25GW renewable capacity. Floods: Heavy rain displaced 70+ families in Phuentshogling, with evacuations and temporary mitigation underway.

Disaster Preparedness: Bhutan’s full-scale earthquake simulation in Thimphu found serious gaps in coordination, communication, staffing and rescue equipment, with delayed protocol activation and inconsistent information sharing undermining response. Integrity & Corruption: The ACC’s National Integrity Assessment 2025 says Bhutan’s overall integrity remains “Good,” but warns that weakening internal control systems and “low-visibility” risks like favouritism, nepotism and conflicts of interest could erode public trust. Economic Stimulus: India has released over 83% of its Nu 15 billion Economic Stimulus Programme to Bhutan, with the latest Nu 2.5 billion tranche bringing total disbursement to Nu 12.5bn, including support for fuel price smoothing, agriculture, education and digital transformation. Drug Threats: Bhutan marked the International Day Against Drug Abuse and Illicit Trafficking by calling for stronger, evolving action against synthetic drugs and new trafficking methods, stressing prevention and treatment over stigma. Thromde Politics: Thimphu’s Thrompon race is heating up, with candidates set to face a contest between experience and fresh vision. Tourism Investment: Gelephu Mindfulness City (GMC) launched a multi-million-dollar tourism investment drive, pitching 20 attractions and 20 activities and inviting investors to shape a sustainable, high-value destination.

Energy & Power: Bhutan’s power ministry says it’s pushing private investment to reach 10,000MW of solar by 2030, while speeding up onshore and offshore gas exploration to tackle the country’s long gas shortage. Health Security: Thimphu’s Royal Centre for Infectious Diseases is ready to start operations next month, with an 80-bed capacity and negative-pressure isolation for highly infectious cases. Urban Politics: The Election Commission has finalized the 2026 Thromde Elections roll and candidates, with 10,309 voters registered across Thimphu and Phuentshogling and campaigns set to run until mid-July. Local Governance: Bhutan’s insurance market is set for a pause—RMA has imposed a six-month moratorium on new insurance licences after a law change allowing one company to offer both life and general insurance. Disaster Watch: Heavy rain has triggered flooding and landslides across the region, with Phuentsholing among the worst hit and roads/bridges disrupted. Regional Links: Bhutan is also moving ahead with Buddhist projects in Lumbini, including a Bhutan Temple Complex and monastery construction.

Bhutan–Nepal Religious Ties: Bhutan has started construction of a Bhutan Temple Complex in Lumbini, with a ground-breaking ceremony in the Western Monastic Zone. The Nu 160 million project, funded by the Royal Government of Bhutan, will include a three-storey temple inspired by Tango Monastery, monk residences, and pilgrim facilities, aiming for completion in 2028. Thimphu Local Elections: The Election Commission of Bhutan has released the final roll for the 2026 Thromde Elections: 10,309 voters in total—9,159 in Thimphu Thromde and 1,150 in Phuentshogling—plus postal voting verification results and a campaign timeline. Thimphu Governance Watch: With the Thrompon race set for July, coverage highlights how voters are weighing experience versus fresh vision, and how the ECB will vet election pledges. Regional Sports: Afghanistan’s national bodybuilding and fitness team has travelled to Thimphu to compete in the 16th South Asian Bodybuilding and Fitness Championship starting June 30. Institutional Integrity: Bhutan’s trust deficit in institutional integrity is flagged in the Sixth National Integrity Assessment (NIA 2025), even as direct bribery reports remain low.

Thromde Elections: The Election Commission of Bhutan has finalised the 2026 Thromde Elections roll and candidate list for Thimphu and Phuentshogling, with 10,309 voters registered (9,159 in Thimphu; 1,150 in Phuentshogling) and women forming the majority; postal voting applications were verified, leaving 95 postal voters approved. Thrompon Race: Four Thrompon candidates are set—two each for Thimphu and Phuentshogling—after 13 Dhamngoi Zomdus were completed, while 14 Tshogpa candidates qualified (8 in Thimphu; 6 in Phuentshogling), showing comparatively stronger female participation at the Tshogpa level. Disaster Readiness: Bhutan’s disaster preparedness is in focus after a full-scale earthquake drill tested Thimphu’s emergency readiness. Regional Links: Bhutan’s cultural diplomacy continues as the Bhutanese government begins construction of a monastery in Lumbini, with Bhutanese and Nepalese officials attending the foundation stone laying ceremony. Public Integrity: Bhutan’s trust deficit in institutional integrity is highlighted by the Sixth National Integrity Assessment (NIA 2025), even as direct bribery experiences remain low.

World Bank Support: The World Bank approved $1.1 billion in emergency financing for Bangladesh to protect food security and livelihoods amid rising fertilizer and fuel prices linked to the Middle East conflict, including $300 million for fertilizer imports for the Aman and Boro rice seasons and $713 million for rapid cash transfers, livelihood help, and keeping essential services running. Thimphu Governance & Integrity: Bhutan’s National Integrity Assessment 2025 says bribery is still rare, but concerns are shifting toward favouritism and personal connections; meanwhile, Thimphu’s next mayoral race is set for July 15, with voters weighing experience against fresh vision. Public Service Delivery: A report warns that excessive meetings, workshops, and travel are undermining frontline public service delivery. Bhutan-India Links: India and Bhutan are also in the spotlight for deeper cooperation, including education and skills partnerships, while Thimphu’s digital transition faces scrutiny after viral school bullying videos. Economy & Cost of Living: Bhutan expands GST exemptions on more essentials like cooking oils, rice, sanitary napkins, salt, and wheelchairs.

Education & Digital Safety: Viral videos of school bullying in Bhutan—showing students assaulting classmates—have sparked outrage and police/education probes, with authorities warning against further sharing and calling for stronger anti-bullying rules and digital literacy. Integrity Watch: Bhutan’s National Integrity Assessment 2025 says bribery is rare and integrity is “Good/Very Good,” but growing worries point to favouritism and personal connections shaping decisions. India–Bhutan Economic Ties: India handed over the fifth Rs 250 crore tranche for Bhutan’s Economic Stimulus Programme, bringing total support to Rs 1,250 crore, with officials citing impacts on farmers, youth, SMEs and tourism. GST Relief for Essentials: Bhutan has moved to exempt more everyday items from 5% GST, including additional rice and cooking oils, with retroactive effect from 18 May. Health & Community: Cancer Survivors Month in Thimphu highlighted how family and community support helps people rebuild after treatment, with HRH Ashi Kesang Wangmo Wangchuck attending. Engaged Buddhism: Jungto Society hosted a nine-day South Korea study tour for INEB leaders and activists from Bhutan and other Asian countries.

India-Bhutan Education Push: Union Education Minister Dharmendra Pradhan met Bhutan’s education minister to deepen cooperation on teacher training, vocational skills, digital learning and AI, with both sides also pointing to shared Guru Padmasambhava ties. Economic Stimulus Update: India handed Bhutan the fifth tranche of INR 250 crore (Nu 2.5bn) under the Economic Stimulus Programme, bringing total support to INR 1,250 crore, and also included education-and-skills funding for teacher training and digital skilling. GST Relief for Essentials: Bhutan’s GST Amendment Act 2026 expands exemptions on everyday items, including cooking oils, rice categories, sanitary napkins, salt and wheelchairs, with retroactive effect from 18 May. School Bullying Goes Viral: Viral videos of bullying and harassment in Thimphu schools have sparked police and education probes, renewed calls for stronger anti-bullying rules and digital responsibility, and warnings not to share footage. Integrity Watch: Bhutan’s National Integrity Assessment 2025 reports high public integrity and rare bribery, but rising worries about favouritism and personal connections influencing decisions. Cancer Survivors’ Message: Cancer survivors in Thimphu highlighted how family and community support helped them recover and rebuild their lives.

Bhutan-India Funding: India released the fifth tranche of its Economic Stimulus Programme to Bhutan—₹250 crore (Nu 2.5 billion)—bringing total ESP support to ₹1,250 crore, with the latest cheque handed over in Thimphu and linked to jobs and recovery for farmers, youth, SMEs and startups. Digital Bhutan: Bhutan’s digital transformation is gaining momentum, with the State of the Nation Report saying the digital economy is creating jobs and income, and highlighting the National Digital Identity system as a key enabler for safer online services. Disaster Readiness: Thimphu’s full-scale earthquake simulation found gaps in coordination, communication and emergency preparedness, including delays in activation and shortages in prolonged response capacity. Urban Resilience Upgrade: Thimphu Thromde is moving ahead with the Memorial Chorten stream corridor revitalisation under a disaster-resilient infrastructure plan, aiming for safer drainage, greener public spaces and improved pedestrian access. GST Relief: The National Assembly passed a GST Amendment Bill expanding GST-exempt essential goods from 9 to 31 items, including multiple categories of rice and edible cooking oils, to ease cost of living. Wildlife Conservation: Seven endangered golden langurs rescued from traffickers in Assam have been released after rehabilitation, with the species also found in Bhutan’s western region.

Digital Transformation: Bhutan’s digital push is gaining momentum, with the State of the Nation Report saying the digital economy is creating jobs and boosting income, alongside progress on the National Digital Identity system. GST Relief: Bhutan’s National Assembly passed the GST Amendment Bill 2026, expanding GST exemptions for essential goods from 9 to 31 items to ease cost of living, including multiple categories of rice and edible cooking oils. Local Politics: Women make up nearly 40% of candidates in this year’s Thromde elections in Thimphu and Phuentshogling, but leadership roles remain male-dominated. Urban Transport: Thimphu’s Babesa corridor expressway upgrade is designed to ease traffic on the city’s busiest stretch by 2029. Environment & Safety: In Lunana, glacial lake early-warning technicians keep watch around the clock, trekking to monitored lakes to help prevent disasters downstream. Regional Connectivity: A study says Northeast India’s road buildout could turn the region into a gateway linking India with Bangladesh, Bhutan, Myanmar and ASEAN by 2047. Waste & Circular Economy: Recykal raised a $23 million bridge round to expand its waste management and Deposit Return System deployments, supporting international growth.