AGP Executive Report

Cross-border payments: India and Nepal have launched a UPI–NPI linkage for real-time remittances, letting travellers transfer money instantly via mobile apps and digital wallets, while also boosting transaction volumes for Nepalese merchants. Local elections: Bhutan’s Election Commission set polling for Thimphu and Phuentshogling thromde elections on 15 July, with new candidate eligibility rules, pledge review, and a pilot Election and Result Administration System to cut paperwork. Energy & climate: DGPC installed solar panels at 187 public facilities in Thimphu, Chhukha and Basochhu, part of a multi-phase ADB-supported programme to reduce reliance on hydropower. Justice reform: The National Council’s Legislative Committee proposed amending the Jabmi (Amendment) Bill 2026 to remove the indigency requirement for pro bono legal service, replacing “indigent persons” with “accused.” Tourism push: Bhutan International Travel Mart in Thimphu drew about 200 global buyers to meet local operators and develop higher-value travel products. Regional context: A new HKH monsoon outlook warns below-average rainfall but high hazard risks across Nepal, India and Bhutan, urging preparedness for flash floods and landslides. India–Bhutan ties: UP signed an MoU for a Bhutanese temple and pilgrim guest house near Sarnath in Varanasi, aiming to strengthen Buddhist tourism links.

Bhutan-India Diplomacy: Bhutan’s PM Tshering Tobgay sent congratulations to Indian PM Narendra Modi on becoming India’s longest continuously serving elected prime minister, calling him a “friend, brother and mentor” and reaffirming the close Bhutan-India partnership. Climate & Disaster Outlook: ICIMOD warns the Hindu Kush-Himalaya region—including Bhutan—may see below-average monsoon rainfall in 2026, but with high risks of flash floods, landslides and other hazards due to erratic extremes and rising temperatures. Bhutan Finance & Lending Rates: Bhutan’s government is exploring ways to reduce lending rates after MPs flagged that banks still lend around 11% despite a lower Minimum Lending Rate, squeezing borrowers and raising concerns over non-performing loans. Human Rights: Human Rights Watch welcomed Bhutan’s release of two political prisoners but urged authorities to free at least 28 more and improve prison conditions. Regional Connectivity: India’s Land Port Management System (VINIMAY/LPMS) is set to digitise border trade and passenger processing—relevant for smoother movement across the region that Bhutan relies on.

Bhutan-India Diplomacy: Bhutanese PM Tshering Tobgay sent a heartfelt message to India’s PM Narendra Modi as he became India’s longest continuously serving elected leader, calling him “friend, brother and mentor” and praising the trust that has sustained Bhutan-India ties. Human Rights: Human Rights Watch welcomed Bhutan’s release of two political prisoners on June 1, but urged authorities to urgently free at least 28 others still behind bars, citing long detentions and harsh conditions. Tourism & Transport Policy: Bhutan’s National Assembly heard concerns over slow tourism spending under the 13th Five-Year Plan, while the Ministry of Infrastructure and Transport is reviewing taxi licensing in Thimphu after a moratorium amid oversupply fears and congestion. Health in Monasteries: Bhutan Stroke Foundation launched a project to prevent strokes among monks and nuns, focusing on awareness, early risk detection and healthier lifestyles. Agriculture Self-Reliance: Bhutan is scaling up locally produced biofertilizers and biopesticides to cut dependence on imported chemicals and protect food security and the environment.

Cooperative Policy Push: India’s National Level Policy Implementation and Monitoring Committee met in New Delhi to roll out the National Cooperation Policy-2025, focusing on stronger, transparent cooperatives, digital transformation, capacity building and rural livelihoods. Bhutan Transport Crunch: Bhutan’s MoIT is reviewing taxi licensing after a moratorium, citing Thimphu oversupply concerns, off-peak mismatch with demand, and congestion as fuel prices and competition rise. Agrifood Self-Reliance: Bhutan is scaling up locally produced biofertilizers and biopesticides to cut imports and strengthen food security under the Agrifood Sector Strategy 2034. Tourism Entry Bottleneck: Phuentsholing’s main gateway is getting upgrades after May 24 congestion overwhelmed tourist immigration counters; officials cite high arrivals and operational pressure, and promise better digital crowd management. Engineering for Digital Growth: Bhutan and IEEE launched a two-day Engineering Education, Research and Innovation Summit in Paro, tying tech progress to Gross National Happiness. Investment Spotlight: Bhutan positioned its agrifood sector as a top investment destination at BATIF 2.0, aiming to double sector value by 2029. Climate and Risk Warning: Nepal’s monsoon outlook flags lower rainfall but higher danger from intense bursts—flash floods, landslides and heat stress—affecting Bhutan and the wider HKH region. Disaster Tech Angle: Bhutan is also exploring space technology for disaster response and geospatial support, with India’s GovTech and IN-SPACe involved. Health Workforce Gap: Bhutan’s parliament raised concerns over shortages of health assistants, especially female workers, in rural gewog health centres.

EU-Northeast Push: Assam CM Himanta Biswa Sarma welcomed the “Team Europe” delegation in Guwahati, pitching Assam’s connectivity and investment potential as the bridge for stronger India-EU trade and industry ties. Regional Cooperation: Bangladesh marked BIMSTEC’s 29th anniversary in Dhaka, stressing trust, multimodal connectivity, trade, tech transfer and supply-chain strengthening across the Bay of Bengal region. Bhutan Transport Policy: Bhutan’s MoIT is reviewing taxi licensing after a moratorium, citing oversupply concerns in Thimphu, fuel-price pressure and congestion, with decisions expected based on real demand patterns. Agrifood Investment Drive: Bhutan is positioning agrifood as a top investment destination, aiming to double sector value by 2029 through reforms, GI products and expanded market access. Climate-Smart Farming: Bhutan is scaling up biofertilizers and biopesticides to cut dependence on imported chemicals amid global supply and price uncertainties. Education & Skills: IEEE partnered with Bhutan to host an engineering education, research and innovation summit in Paro, linking curricula and research to digital transformation and GNH values. Tourism Entry Fix: Bhutan is upgrading Phuentsholing’s immigration and operations after congestion during peak tourist arrivals, with calls for better digital systems and crowd management. Health Workforce Gap: Bhutan’s parliament raised shortages of health assistants, especially female workers, in rural gewogs, pressing for better staffing commitments. Road Upgrade: Widening works are underway on the Tsirang–Sarpang highway stretch (Daraychu to Shaychamthang) to ease bottlenecks and improve safety ahead of Gelephu Mindfulness City traffic.

Bhutan Earthquake: A 5.8-magnitude quake struck Bhutan late Sunday (11:06 pm IST), with tremors felt across Northeast India; aftershocks followed, and authorities are monitoring for further activity. Tourism & Border Management: 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 operational pressure, and they’re pushing better digital systems and crowd handling. Urban Housing: The National Council questioned progress on Bhutan’s National Housing Policy 2020 as tenants in Thimphu reportedly spend about 42% of income on rent; lawmakers want clearer plans for affordable housing delivery. Rural Health Staffing: MPs raised concerns over shortages of Health Assistants, especially female health workers, in remote gewogs, urging full staffing of gewog health centres. Education Infrastructure: MoESD says it’s addressing classroom and facility crunch at the College of Zorig Chusum in Trashiyangtse with immediate and long-term measures. Culture & Livelihoods: In Samtse, the Pemaling Wool Heritage initiative is reviving sheep-wool crafts by turning wool into marketable products, helping keep tradition alive. Gelephu Mindfulness City Finance: Ceffu received a full financial services license for regulated digital-asset activities in Gelephu Mindfulness City. Arts Recognition: Thinley Wangchuk’s grief-inspired script won an international Script Development Grant, spotlighting Bhutan’s emerging film voices.

Border & Tourism Pressure: Phuentsholing’s main entry point faced major congestion on May 24, with 2,149 tourists entering in one day; officials say the issue was operational and infrastructural strain, not staffing alone, and upgrades plus better digital systems are being planned. Education Capacity: MoESD says it is tackling classroom and infrastructure crunch at the College of Zorig Chusum in Trashiyangtse with immediate and long-term measures. Rural Health Staffing: MPs raised concerns over shortages of Health Assistants, especially female health workers, in remote gewogs, calling for full staffing of gewog health centres. Ageing & Care: Bhutan’s elderly population is heading toward an uncertain future as migration reshapes family care, leaving some older residents lonely and unsure who will look after them. Culture & Livelihoods: Samtse’s Pemaling Wool Heritage initiative is reviving sheep-rearing know-how by turning wool into marketable crafts and products. Digital Finance in Gelephu: Ceffu received a full financial services license for regulated digital-asset activities in Gelephu Mindfulness City. Earthquake Watch: A 5.8 quake struck Bhutan on June 7, with tremors felt across Northeast India; authorities reported no major damage so far.

Earthquake Watch: A magnitude 5.8 quake struck Bhutan late Sunday night (June 7), with tremors reported across Sikkim and North Bengal, and also felt in parts of Assam, Bangladesh, Nepal and China; authorities reported no immediate damage or casualties as monitoring continued. EU–Northeast Push: A “Team Europe” delegation will visit Assam on June 8–9 to deepen trade and investment ties, with talks focused on renewable energy, green growth, semiconductors/electronics, healthcare, tea and agri-food, flavours and fragrances, and AYUSH—plus the launch of Assam’s first Blue Valleys cluster linking Northeast India, Bhutan and Europe. Border Modernisation: India’s Home Minister Amit Shah is set to launch the Land Port Management System on June 9, aiming to digitise land border workflows and cut delays through a unified system for cargo and passenger processing. Bhutan in Crypto Markets: On-chain trackers say Bhutan-linked wallets moved 738 BTC (about $44.9m) in a structured drawdown pattern, adding pressure as Bitcoin tests key support levels. Wildlife Threat: A new study warns illegal wildlife trade across the Hindu Kush Himalaya has more than doubled since 2019, endangering species including carnivores, elephants and pangolins—an issue that directly affects Bhutan’s shared mountain ecosystem.

EU–Assam Deal-Making: A “Team Europe” delegation will visit Guwahati on June 8–9 to explore Indo-EU collaboration, focusing on renewable energy, healthcare, semiconductors, tea and agri-food, and AYUSH. Border Trade Tech: India plans to launch a Land Port Management System on June 9 to digitise land border operations and speed up cargo and passenger movement. BIMSTEC Push: Nepal’s PM urged BIMSTEC members to tackle climate change and boost connectivity in transport, trade and digital networks, as the bloc positions itself as a South-South cooperation model. Bhutan’s Bitcoin Drawdown: Bhutan-linked wallets reportedly offloaded 738 BTC (about $44.88m) in a structured sovereign drawdown, continuing funding-linked sales tied to the Gelephu Mindfulness City push. Tourism Bottlenecks: Bhutan’s parliament heard concerns over long queues and permit delays at Phuentsholing, with the Home Minister saying the issue is being monitored. Zero Waste Bhutan 2030: Government reaffirmed its waste goals, stressing public participation and stronger systems for e-waste and EV battery management. Renewables Tax Relief: The National Assembly advanced Bhutan’s Renewable Energy Tax Exemption Bill, aiming to cut project costs and improve energy investment. Demography Incentives: Bhutan is set to provide cash incentives to families to address declining birth rates. Hydropower Contract: HCC secured an INR 127 crore contract for diversion works on Bhutan’s Wangchhu Hydroelectric Project.

GST Watch: Bhutan’s Finance Ministry says the Goods and Services Tax rollout is on track despite early price concerns, citing over Nu 3bn collected in the first four months and a six-fold rise in Self Tax Collecting Agents filing returns. Tourism Flow: The Home Minister told Parliament that delays at Phuentsholing’s Integrated Check Post and permit processing are being monitored, after MPs raised concerns about long queues for SDF payments and entry formalities. Renewables Policy: The National Assembly advanced Bhutan’s Renewable Energy Tax Exemption Bill, aiming to cut project costs and boost investment with time-bound indirect tax and transfer tax exemptions for approved renewable projects. Climate Finance: Bhutan urged donors not to cut environmental funding after LDC graduation, warning that climate vulnerability is rising even as concessional support declines; it also secured continued GEF support for climate adaptation. Demography Push: Bhutan announced cash incentives for families to have more children, offering 10,000 ngultrums monthly for eligible third and later births. Connectivity & Jobs: India will fully fund Bhutan’s Nu 34.5bn Kokrajhar–Gelephu rail link, while Pelsung’s third cohort graduated in Gelephu with more than 300 participants. Hydropower Contract: HCC won a ₹127 crore package for diversion tunnels and related works for the Wangchhu Hydroelectric Project. Regional Context: Bhutan’s PM said stronger coordination in India’s West Bengal could benefit Bhutan through practical continuity, not party politics.

Hydropower Deal: Hindustan Construction Company (HCC) won a ₹127 crore contract from Wangchhu Hydroelectric Power for diversion tunnels, hydromechanical gates and cofferdams—key works due in nine months, as Bhutan pushes hydropower expansion under its 13th Five-Year Plan. Tourism Bottlenecks: Parliament heard concerns about long queues and delays for tourists at the Phuentsholing Integrated Check Post, especially around Sustainable Development Fee payments and entry permits, with the Home Minister saying the issue is being monitored. Waste Management Push: Government reaffirmed its commitment to Zero Waste Bhutan 2030, stressing public participation, school and community awareness, and stronger systems for segregation, recycling and e-waste/EV battery handling. Energy Policy: The National Assembly advanced Bhutan’s Renewable Energy Tax Exemption Bill, aiming to cut costs and boost investment through time-bound tax incentives across multiple renewable technologies. Demography Response: Bhutan announced cash incentives for families to have more children amid falling births and migration, offering 10,000 ngultrums monthly for third and later children (from June 4, 2026) until age three. Regional Connectivity: Prime Minister Dasho Tshering Tobgay said India will fully fund the Nu 34.5 billion Kokrajhar–Gelephu rail link, positioning it as a major boost to Bhutan’s trade and the Gelephu Mindfulness City vision.

Hydropower Deal: Hindustan Construction Company (HCC) has won a ₹127 crore contract from Wangchhu Hydroelectric Power Limited for key diversion works at Bhutan’s Wangchhu Hydroelectric Project, including diversion tunnels, hydromechanical gates and cofferdams, with a nine-month completion timeline. Population Policy: Bhutan is set to pay cash incentives to families to boost births, offering 10,000 ngultrums monthly for every third and subsequent child (and eligible older third-plus children) born on or after June 4, 2026 until age three, as births and fertility continue to fall amid migration. Climate Finance: Bhutan secured continued Global Environment Facility support, with the Least Developed Countries Fund extended for two more cycles to back climate adaptation priorities through 2030. Disability Rights Debate: Bhutan’s National Council is reviewing the Convention on the Rights of Persons with Disabilities, with MPs pushing to distinguish “reservations” from “declarations” amid objections. Sports Spotlight: India and Bangladesh meet in the SAFF Women’s Championship final in Goa today, after India beat Bhutan in the semis; meanwhile, Nepal’s cricket board apologised for a controversial timed-out dismissal involving a Bhutan batter.

Hydropower Watch: Hindustan Construction Company (HCC) has won a ₹127 crore contract from Wangchhu Hydroelectric Power Ltd for diversion tunnels, hydromechanical gates and cofferdams for Bhutan’s Wangchhu project, with work due in nine months—another boost for Bhutan’s push toward 6,000MW under its 13th Five-Year Plan. Demography Push: Bhutan has announced cash incentives to tackle declining births, offering 10,000 ngultrum monthly for every third and later child born on/after June 4, 2026 (until age three), as births and fertility rates fall and migration rises. Climate & Resilience: Bhutan’s climate resilience work is being praised at the Global Environment Facility Council, highlighting a USD 56m forest and farm livelihoods project that improved food availability and strengthened ecological corridors. Urban Risk Management: Thimphu is upgrading drainage to handle heavier rainfall, funded by GEF and government under a UNDP-backed resilience project. Health in Monasteries: The Bhutan Stroke Foundation is rolling out a four-year programme to cut stroke risk in monastic communities after screenings found many people at high risk. Sports Spotlight: India and Bangladesh set for the SAFF Women’s Championship final in Goa, while Nepal’s cricket board apologised after a timed-out dismissal controversy involving Bhutan.

Bhutan–India ties: Prime Minister Dasho Tshering Tobgay’s two-day visit to Assam underlined deepening cooperation on trade, connectivity and tourism, building on the King’s 2023 state visit and recent high-level exchanges. Climate resilience in Thimphu: A major drainage overhaul is underway to cut flooding and road overflow risks, aligned with the Thimphu Structure Plan and supported by UNDP and GEF funding. Forests and health: Bhutan’s Social Forestry Day spotlighted community-led conservation, while the Bhutan Stroke Foundation launched a four-year push to reduce stroke risk in monastic communities after screenings found most people at high risk. Rights and justice: Two Bhutanese political prisoners were released after more than 18 years following a royal pardon, but advocates raised concerns about their post-release documentation and safety. Law and society: The National Council sent Bhutan’s Livestock Bill 2025 back for further review, and lawmakers urged stricter enforcement of public smoking rules amid rising tobacco-related concerns. Energy trade: UPERC approved a 30-year plan to import 511 MW hydropower from Bhutan’s Khorlochhu project to Uttar Pradesh at a fixed tariff. Gelephu Mindfulness City: The Bhutan Trust Fund for Environmental Conservation opened an office at ChoeGo GMC to support long-term conservation financing and planning.

Political Prisoners: Two Bhutanese political prisoners, Chaturman Tamang and Hasta Bahadur Rai, were released from Chamgang Central Prison on 1 June after more than 18 years, following a royal pardon; rights group GCRPPB says they were taken to India without identity documents and later denied entry into Nepal. Justice & Rights: A Bhutanese businessman, Dhiraj Pradhan, received a nine-year prison sentence after remarks in a viral Facebook Live video, reigniting debate abroad over freedom of expression and how politically sensitive cases are handled. Lawmaking: The National Council sent Bhutan’s Livestock Bill 2025 back to committee for further review after members raised concerns and requested additional submissions. Tax Policy: As the National Council deliberates the GST Amendment Bill 2026, MPs questioned how the changes were proposed and sought clarity on how already-imported goods in stock would be treated. Environment & Health: Bhutan marked Social Forestry Day with tree planting and community-led conservation, highlighting the country’s constitutional forest-cover requirement and carbon-negative status. Sports (Bhutan in focus): Nepal’s cricket body apologized after a timed-out dismissal appeal against Bhutan in a women’s match sparked a “spirit of cricket” debate; in SAFF Women’s Championship, India beat Bhutan 1-0 to reach the final, setting up a Bangladesh vs India title clash. Regional Energy Trade: UPERC approved a 30-year plan to import 511 MW hydropower from Bhutan’s Khorlochhu Hydro Power Station at a fixed INR 6.75/unit tariff at the Indo-Bhutan border.

Cross-Border Payments: India’s UPI has gone live in Cambodia for QR-code merchant payments, with RBI/NPCI International connectivity enabling Indian travellers to pay at 4.5 million KHQR merchants; a second phase will extend the corridor for Cambodian users in India. Hydropower Trade: UPERC approved a 30-year deal for 511 MW of Bhutan’s Khorlochhu hydropower, fixing the tariff at INR 6.75 per unit at the Indo-Bhutan border to support Uttar Pradesh’s peak demand. Bhutan’s Aviation Push: Bhutan’s National Assembly unanimously adopted the Convention on International Civil Aviation 2016, aiming to strengthen Bhutan’s role in global aviation governance and improve prospects for ICAO Council membership. Tobacco Control: Bhutan’s NA Social and Culture Committee is urging stricter monitoring and enforcement of public smoking rules, citing weak follow-through and unclear oversight structures. Governance & Tax: The National Council debated the GST Amendment Bill 2026, including new exemptions for essential goods and questions on how the changes were initiated and how they affect already-imported stock. Sports (SAFF Women’s): Bangladesh beat Nepal 2-1 to reach the final, while India set up a semifinal against Bhutan after topping their group. Medicaid Fraud Hearing (US): US lawmakers held hearings on Ohio Medicaid waiver fraud, with claims of large losses and allegations involving specific immigrant communities.