AGP Executive Report

Bhutan–India Diplomacy: Bhutan’s PM Tshering Tobgay sent a heartfelt message to India’s Narendra Modi as he became the longest continuously serving elected PM, calling him a “friend, brother and mentor” and praising the enduring Bhutan–India partnership. Tourism & Border Services: Phuentsholing’s immigration upgrade is set to ease tourist arrival congestion, with renovated counters returning next month and plans for terminal expansion after overcrowding concerns. Health Workforce: Bhutan’s National Assembly heard worries over a nurse shortage, with MPs questioning a moratorium on new nursing colleges and urging wider training opportunities beyond Thimphu. Finance & Lending Rates: Bhutan’s government is exploring ways to reduce high lending rates after banks still charge around 11% despite a lower Minimum Lending Rate, with non-performing loans and operating costs cited. Human Rights Watch: HRW welcomed Bhutan’s release of two political prisoners but urged urgent release of at least 28 others still held, citing long-standing rights concerns. Regional Trade Tech: India’s Land Port Management System (VINIMAY) launch aims to digitise border cargo and passenger processing, a move that could affect cross-border movement for Bhutan-bound travellers and trade.

Political Prisoners: Bhutan released two political prisoners on June 1, but Human Rights Watch says at least 28 others still need urgent freedom and better prison conditions. Cultural Tourism Deal: Bhutan and Uttar Pradesh signed a 30-year lease for nearly two acres in Varanasi to build a Bhutanese monastery and guest house, aimed at strengthening Buddhist tourism ties. Border Experience Upgrade: Phuentsholing is set to get renovated immigration counters and future terminal expansion to ease congestion and improve tourist arrivals. Land & Identity: Bhutan’s National Land Commission Secretariat launched a digital consent mechanism linked to the national digital ID to speed land ownership checks and cut fraud, with a pilot planned before wider rollout. Health in Monasteries: A four-year stroke prevention project will target monks and nuns with awareness, risk assessments, and early detection. Transport Policy: Bhutan’s MoIT is reviewing taxi licensing in Thimphu amid concerns of oversupply, low earnings, and traffic congestion. Agrifood Self-Reliance: Bhutan is pushing biofertilizers and biopesticides to reduce dependence on imported chemicals and strengthen food security. GCC Evacuation Planning: Bhutan’s Kuwait embassy is designated as the operational hub for GCC evacuation operations, with 7,786 Bhutanese nationals covered in contingency planning.

Bhutan Digital Land Security: Bhutan’s National Land Commission Secretariat has launched a digital consent mechanism tied to the national digital ID to streamline land ownership checks and cut fraud in property transfers, with a pilot planned for three months and a new DrukRef23 mapping platform. Taxi Licensing in Thimphu: Bhutan’s Ministry of Infrastructure and Transport is reviewing taxi licensing after a moratorium, citing oversupply concerns in Thimphu—taxis reportedly outnumber passenger demand during off-peak hours, worsening earnings and congestion. Agrifood Self-Reliance: Bhutan is pushing biofertilizers and biopesticides to reduce dependence on imported chemicals, aiming to strengthen food security and protect the environment under the Bhutan Agrifood Sector Strategy 2034. Gulf Evacuation Readiness: Bhutan is preparing an evacuation and repatriation contingency plan for 7,786 nationals in GCC countries, with the Bhutanese embassy in Kuwait acting as a regional hub if the Middle East situation worsens. Engineering Push: Bhutan and IEEE are hosting an Engineering Education, Research and Innovation Summit in Paro, linking engineering training to digital transformation and sustainable development. Kuwait Domestic Worker Rules: Kuwait has updated domestic worker recruitment rules—allowing hiring from 10 countries and banning recruitment from 27, including Bhutan—through governorate-level service centres.

Phuentsholing Border Pressure: Bhutan’s busiest entry point saw major congestion on May 24, with 2,149 tourists entering in one day; the Home Minister said it was driven by unusually high arrivals and operational strain, not staffing gaps, as authorities move to upgrade systems and crowd management. Earthquake Damage: A 5.5 quake near Punakha damaged 404 households, with cracks and harm reported across schools, health facilities, and infrastructure; one injury was recorded at a construction site. Health & Newborn Care: The Ministry of Health says it’s prioritising better neonatal services and is moving ahead with new Mother and Child Hospitals in Thimphu and Mongar, expected to be completed soon. Rural Health Staffing: MPs raised concerns over shortages of Health Assistants, especially female workers, in remote gewogs, pressing for full staffing of gewog health centres. Housing Affordability: The National Council questioned progress on the National Housing Policy 2020 after Thimphu tenants reportedly spend about 42% of income on rent. Economy & Skills: MoESD is addressing classroom and infrastructure shortages at the College of Zorig Chusum in Trashiyangtse. Climate Monitoring: Bhutan installed its first high-altitude black carbon monitoring station near Shodug Glacier to strengthen climate and air-quality tracking. Agrifood Push: Bhutan is positioning agrifood as a top investment destination, aiming to double sector value by 2029 amid major reforms and expanded market access. Space Ambitions: Bhutan is exploring space technology as a new driver for disaster response, key sectors, and youth jobs, with support from India.

Earthquake Watch: A 5.5 quake near Punakha hit at 11:36pm, damaging 404 households and some schools, health facilities, monuments and infrastructure; one injury was reported, with Wangdue Phodrang, Punakha and Mongar worst affected. Border & Tourism Flow: Phuentsholing’s main entry point is being upgraded after May 24 congestion, when 2,149 tourists entered in one day; officials say the issue was high arrivals plus pressure on counters, not staffing alone. Health & Care: MoH says neonatal care will focus on improving quality and access as Mother and Child Hospitals in Thimphu (150 beds) and Mongar (65) near completion; meanwhile, MPs raised concerns over shortages of health workers, especially female staff, in rural gewogs. Education & Skills: MoESD is addressing classroom crunch at College of Zorig Chusum in Trashiyangtse with immediate and long-term measures. Community & Culture: Pemaling Wool Heritage in Samtse is reviving sheep-rearing by turning wool into marketable crafts, while Thinley Wangchuk’s grief-inspired script earns international recognition. Road Works: Widening is underway on the Tsirang–Sarpang route (Daraychu–Shaychamthang) to ease bottlenecks and improve safety.

Earthquake Watch: A 5.8-magnitude quake struck Bhutan late Sunday (11:06 pm IST, depth 26 km), triggering tremors across Northeast India including Assam, West Bengal and Sikkim; no major damage or casualties were reported as authorities monitored aftershocks. Livestock Bill: Bhutan’s National Council adopted the Livestock Bill 2025, allowing meat shops and sales outlets only in designated locations after concerns about scattered businesses. Road Safety in Thimphu: Lane-discipline violations in Thimphu are surging, with traffic police expanding CCTV monitoring and patrols and starting targeted enforcement on key corridors. Gelephu Finance Boost: Ceffu received a full financial services license for Gelephu Mindfulness City, enabling regulated custody, investment dealing, and credit arrangement for digital assets. GMC Project 108: Tasha International News and members raised Nu 17 million for the 108 Jangchub Choeten Project, adding to global participation around the Gelephu Mindfulness City vision. Regional Links: A high-level EU “Team Europe” delegation is visiting Assam on June 8–9 to deepen cooperation with India’s Northeast, including sectors like renewable energy, healthcare, semiconductors, and agri-food.

Bhutan Earthquake: A 5.6-magnitude quake originating in Bhutan’s Punakha district was felt across Dhaka and several Bangladesh districts late Sunday night, with the epicentre reported in Bhutan and no immediate reports of casualties or damage. Regional Shocks: Tremors also spread through Sikkim and North Bengal, prompting residents to step outside briefly as authorities monitored the situation. EU–Northeast Push: A “Team Europe” delegation will visit Guwahati, Assam on June 8–9 to explore new trade and investment links with India’s Northeast, with talks and a “Blue Valleys” cluster launch focused on sectors like renewable energy, healthcare, semiconductors, tea and agri-food. Border Tech in India: Home Minister Amit Shah is set to launch India’s Land Port Management System (LPMS) on June 9 to digitise land-port operations and speed up cargo and passenger processing. Tourism Angle: A travel feature highlights Bhutan’s cultural confidence, from monasteries to the question of whether tourists found public toilets clean.

BIMSTEC & Climate: Nepal’s PM Balendra Shah urged BIMSTEC members to work together on climate change and natural disasters, while also pushing stronger transport, trade and digital connectivity as the bloc marks its 29th anniversary. Tourism & Service: Bhutan’s Home Minister told Parliament that tourist permit delays at Phuentsholing are being monitored closely, after MPs raised concerns about long queues for SDF payments and entry formalities. Waste & Accountability: Government reaffirmed its push for Zero Waste Bhutan 2030, stressing public participation and better waste segregation, while responding to questions on incinerators, MRFs, e-waste and EV battery management. Renewables Policy: The National Assembly advanced Bhutan’s Renewable Energy Tax Exemption Bill 2026, offering indirect tax exemptions for renewable projects to cut costs and improve energy security. Gelephu Momentum: Pelsung’s third cohort graduated in Gelephu, with training linked to the GMC vision, including work on a waste-to-resources climate startup. Neonatal Care: Bhutan is focusing on quality and access in neonatal services, with new Mother and Child Hospitals in Thimphu and Mongar expected to be completed soon. Bitcoin Watch: On-chain reports say Bhutan-linked wallets moved 738 BTC worth about $44.88M, continuing a structured sovereign drawdown amid market volatility.

SAFF Women’s Final: India beat Bangladesh 3-1 to win the SAFF Women’s Championship, with Pyari Xaxa, Sanfida Nongrum and Lynda Kom scoring for India and Ritu Porna Chakma replying for Bangladesh. Tourism & Borders: Bhutan’s Home Minister says the government is working to ease tourist permit delays and long queues at Phuentsholing’s Integrated Check Post. Tax Reform: Bhutan’s Finance Ministry says GST rollout is on track despite early concerns, citing over Nu 3bn collected in the first four months and a wider filing base. Renewables Law: The National Assembly advanced a Renewable Energy Tax Exemption Bill, aiming to cut project costs and boost investment. Waste Policy: Government reaffirmed its Zero Waste Bhutan 2030 push, stressing public awareness and stronger waste systems. Health: Bhutan is prioritising quality neonatal care, with new Mother and Child Hospitals in Thimphu and Mongar set to complete soon. Demography: Bhutan announced monthly cash incentives for families to have more children as births decline. Hydropower Business: HCC secured an INR 127 crore contract for diversion works on the Wangchhu Hydroelectric Project. Climate Finance: Bhutan urged donors not to cut environmental funding after LDC graduation, warning climate risks are rising.

Hydropower Deal: Hindustan Construction Company (HCC) secured an INR 127 crore contract for diversion tunnels, hydromechanical gates and cofferdam works for Bhutan’s Wangchhu Hydroelectric Project, with completion targeted in nine months. Energy Trade: Uttar Pradesh Power Corporation received UPERC approval to buy power from Bhutan’s 511-MW Khorluchu Hydro project (a Tata Power–Druk Green Power joint venture) at a flat tariff of Rs 6.75/unit for 30 years. Population Policy: Bhutan announced cash incentives of 10,000 ngultrums per month for families having a third and subsequent child, starting June 4, as births and fertility continue to fall. Conservation & Community: Bhutan Trust Fund for Environmental Conservation (BTFEC) signed a Nu 2.5 million grant for elephant corridor restoration in Gelephu Mindfulness City, while Bhutan Red Cross opened its first Branch Emergency Operation Centre in Tsirang. Local Environment Action: Paro district launched a pilot to cut single-use plastic carry bags in vegetable markets, backed by jute and recycled-bag alternatives. Tourism Partnership: Thailand and Bhutan advanced their “Two Kingdoms, One Destination” tourism push with reciprocal familiarisation trips. Sports: India and Bangladesh set for the SAFF Women’s Championship final in Goa on June 6.

Population Policy: Bhutan will pay cash incentives of 10,000 ngultrums monthly for every third and subsequent child (and eligible older third-plus births) born on or after June 4, 2026, aiming to reverse declining births and outward migration. Energy Trade: Uttar Pradesh Power Corporation got UPERC approval to buy power from Bhutan’s 511-MW Khorluchu Hydro project at a flat tariff of Rs 6.75 per unit for 30 years, with a power sale agreement expected soon. Hydropower Build-Out: Hindustan Construction Company won a ₹127 crore contract for Wangchhu hydro works in Bhutan, including diversion tunnels, hydromechanical gates and cofferdams, due within nine months. Climate Funding: Bhutan secured continued Global Environment Facility support via the LDCF, extending funding cycles through June 2030 for climate adaptation priorities. Disaster Readiness: Bhutan Red Cross Society opened its first Branch Emergency Operation Centre in Tsirang to support district disaster response with first-aid and emergency equipment. Environment at Home: Paro district launched a pilot to cut single-use plastic carry bags in vegetable markets, partnering with jute-bag and recycling initiatives.

World Bank Appointment: India has named economist Neelkanth Mishra as its new Executive Director at the World Bank, representing a South Asia constituency that includes Bhutan, for a three-year term. Population Policy: Bhutan will pay cash incentives of Nu 10,000 for every third and subsequent child (from June 4, 2026) to tackle declining births and an ageing population. Hydropower Contract: Hindustan Construction Company (HCC) secured a ₹127 crore contract in Bhutan for the Wangchhu Hydroelectric Project, covering diversion tunnels, hydromechanical gates and cofferdams, due in nine months. Sports—Cricket: Bhutan’s Ritshi Choden became the first woman cricketer to be timed out in international cricket against Nepal; the Cricket Association of Nepal later apologised, saying the dismissal was lawful but not in the spirit of the game. Sports—Football: India and Bangladesh set for the SAFF Women’s Championship final in Goa, with India aiming for a record sixth title after beating Bhutan in the semis. Disaster & Climate Resilience: Bhutan’s climate resilience work was praised at the GEF Council, highlighting improved food availability and stronger conservation outcomes across project districts.

Cricket & Sportsmanship: Bhutan’s Ritshi Choden became the first woman batter to be “timed out” in international cricket during an ACC Women’s Premier Cup match against Nepal in Malaysia. Nepal’s Cricket Association later issued a public apology, saying the dismissal was within the laws but not in line with the “spirit of cricket.” Local Development & Climate Resilience: Thimphu is upgrading its storm drainage system to handle heavier rainfall and reduce urban flooding, with works planned from Sersang School through the city toward Kaja Throm under a government-UNDP project supported by the GEF. Disaster Response & Health Services: The Bhutan Red Cross Society opened its first Branch Emergency Operations Centre in Tsirang, strengthening local disaster preparedness and response. Environment & Conservation: Bhutan’s climate resilience work was praised at the GEF Council meeting in Samarkand, highlighting a USD 56 million project supporting forests, climate-resilient agriculture, and rural livelihoods. Governance: The National Council referred Bhutan’s Livestock Bill 2025 back to the Economic Affairs Committee for further review after concerns were raised by members. Sports (Regional): Bhutan also featured in regional match coverage, including Cambodia vs Bhutan fixtures and Bhutan’s participation in women’s cricket debates.

Renewable Energy: Bhutan’s National Assembly unanimously adopted the Renewable Energy Tax Exemption Bill 2026, sending it to the National Council for further deliberation. Environment & Forestry: Bhutan marked Social Forestry Day on June 2 with tree-planting and community-led conservation, reaffirming its forest-protection commitments and carbon-negative status. Aviation Governance: The NA also adopted the Convention on International Civil Aviation 2016 (Chicago Convention), aimed at strengthening Bhutan’s role in global air travel rules. Public Health Policy: Lawmakers pushed for stricter enforcement of Bhutan’s public smoking rules as tobacco imports rise and monitoring appears weak. Sports (SAFF Women’s Championship): India beat Bhutan 1-0 to reach the final, while Bangladesh came back to defeat Nepal 2-1; the final will be between India and Bangladesh. Regional Energy Trade: UPERC approved a long-term 511 MW hydropower import plan from Bhutan’s Khorlochhu project to Uttar Pradesh at a fixed tariff for 30 years. Human Rights: The Global Campaign for the Release of Political Prisoners in Bhutan welcomed the release of two Bhutanese political prisoners, while raising concerns about their post-release treatment and documents.

SAFF Women’s Championship (Goa): India edged Bhutan 1-0 in the semi-final as Sanfida Nongrum scored in the second half, but coach Crispin Chhetri admitted Bhutan “deserved to win” after criticizing India’s attitude and missed chances. SAFF Final Line-up: Bangladesh beat Nepal 2-1 in the other semi-final, setting up a final against India, with Bhutan awaiting the consolation match. Bhutan Sports Focus: Bhutan’s disciplined defence kept the match tight, but the Dragons fell short as India converted key moments. Bhutan Governance: Bhutan’s National Assembly unanimously adopted the Convention on International Civil Aviation 2016, a move aimed at strengthening Bhutan’s role in global aviation governance. Public Health & Law: The National Assembly’s Social and Culture Committee urged stricter enforcement of Bhutan’s public smoking rules amid concerns about weak monitoring. Compassion in Leadership: Bhutan hosted a Compassionate Leadership Forum and signed the Global Compassion Declaration, pushing compassion as a practical guide for governance.

SAFF Women’s Championship: India coach Crispin Chettri says the team must take risks and test younger players ahead of the semi-final against Bhutan in Goa, with India entering as heavy favourites after a dominant group run. Sports—Bhutan in the spotlight: Bhutan women chase history in the same knockout double-header, where India’s return of forward Manisha Kalyan adds extra firepower. Bhutan—land rights: Bhutan’s National Land Commission Secretariat has launched a new digital consent system using the National Digital Identity platform to reduce forged signatures, unauthorized transactions, and land-ownership disputes. Education: The Education ministry revised student assessment rules so students no longer need separate 40% in both written exams and continuous assessment to pass, after concerns about Dzongkha failures. Culture: Ogyen Choling Museum in Bumthang’s Tang Gewog marks its 25th anniversary with rare thangkas on display. Public welfare: The Livestock Bill was introduced with a clear message: it targets animal welfare, biosecurity and food safety—not slaughter.