AGP Executive Report

Hydropower Contract: ANDRITZ won a contract to supply four Pelton turbine-generator units for Bhutan’s 600MW Khorlochhu project in Trashiyangtse, supporting an expected 2.524TWh annual output. Health & Investment: TOWER Council Foundation and Druk Holding & Investments (DHI) announced a partnership to build Bhutan’s “Generational Health” ecosystem across research, clinical care, data and innovation. Tourism & Town Development: Phuentsholing launched a new destination brand and digital visitor services to help travellers stay longer, moving the border gateway beyond a transit stop. Urban Cleanliness: Thimphu Thromde says CCTV is helping curb littering, recording 47 cases and collecting over Nu 88,000 in fines since surveillance began. Regional Security: BIMSTEC met in New Delhi to strengthen cooperation against terrorism and transnational crime, with Bhutan among the delegations. Legal Rights: Bhutanese refugee children in Nepal received a Supreme Court order for exit permits to reunite with parents in the US. Climate Warning from the Himalayas: A Himalayan trek highlighted how shifting rivers and seasons are already disrupting communities across the region.

Tourism & Borders: Phuentsholing is rolling out a new destination brand and digital visitor services to help travellers stay longer instead of using the town only as a transit stop. Regional Security: BIMSTEC’s 11th counter-terrorism and transnational crime working group meeting in New Delhi reviewed threats like trafficking and illicit drug flows, with Bhutan among the delegations. Climate Justice & Resilience: A Nepal-focused climate justice piece highlights how Himalayan disasters demand cross-border data sharing, drills and preparedness—not just post-disaster response. Himalayan Risk Watch: After the Bhotekoshi–Trishuli flood, analysis argues Earth observation must translate into regional preparedness for the Hindu Kush Himalaya. Economy & Outlook: ADB kept Bhutan’s 2026 growth forecast at 6.5% but raised its inflation projection. Public Services: Thimphu Thromde says CCTV is curbing littering, with dozens of cases and fines collected since surveillance began. Education & Youth: Bhutan’s FIRST Global Challenge team is preparing in South Korea, while Nazhoen Pelri School is hiring a vice principal for 2027.

BIMSTEC Security Talks: Bhutan was among seven member states at the 11th BIMSTEC Joint Working Group meeting on counter-terrorism and transnational crime in New Delhi, where delegations discussed traditional and emerging threats and reviewed cooperation on human trafficking, illicit drug trafficking, anti-money laundering, legal and law-enforcement issues, and countering radicalisation. Thimphu Clean-Up Push: Thimphu Thromde says CCTV surveillance has curbed littering and illegal dumping, recording 47 cases and collecting over Nu 88,000 in fines since last year, with plans to expand camera coverage. ADB Outlook for Bhutan: The Asian Development Bank kept Bhutan’s 2026 growth forecast at 6.5% but raised its inflation projection sharply. Refugee Rights Ruling: Bhutanese refugee children in Nepal were granted an exit-permit order by the Supreme Court to reunite with parents in the US. Innovation & Youth: Team Bhutan is preparing for the FIRST Global Challenge in South Korea (Oct 7–10), focused on wildfire prevention and recovery. Tourism Gateway Move: Phuentsholing launched a destination brand and digital visitor services to encourage longer stays beyond transit. Hydropower Disruption (Regional): Nepal’s flood damage to hydropower projects is prompting reconstruction and financial model planning, a reminder of shared Himalayan climate risks.

Tourism Push in Phuentsholing: The town has launched a new “Prosperous Phuentshogling” destination brand, digital visitor services and planned online payments and booking, aiming to shift travellers from quick transit to longer stays. Urban Cleanliness in Thimphu: Thimphu Thromde says CCTV surveillance has deterred littering and illegal dumping, recording 47 cases and collecting over Nu 88,000 in fines since last year, with more cameras planned. Macroeconomic Outlook: The Asian Development Bank kept Bhutan’s 2026 growth forecast at 6.5% but nearly doubled its inflation projection, signalling cost pressures ahead. Gelephu Mindfulness City Finance: BTSE Bhutan received a Financial Services License to run a regulated virtual-asset trading platform and institutional custody, with phased onboarding starting with BTC/USDT and ETH/USDT pairs. Rabies Milestone: WHO validated Bhutan’s elimination of dog-transmitted human rabies as a public health problem, with zero deaths reported since June 2023. Regional Security Talks: BIMSTEC counter-terrorism and transnational crime delegates met in New Delhi, including Bhutan, to discuss traditional and emerging threats and strengthen cooperation.

Crypto Regulation in Gelephu: BTSE Bhutan says it has received a Financial Services License from the Gelephu Financial Services Office, allowing regulated virtual-asset trading and institutional custody, with phased onboarding starting soon for BTC/USDT and ETH/USDT pairs. Public Health Milestone: WHO has officially validated Bhutan’s elimination of dog-transmitted human rabies as a public health problem, with no dog-mediated human deaths since June 2023. Border & Mobility: India is setting up a temporary immigration office at Dadgiri-Hatisar in Assam for a month ahead of Bhutan’s Nov 1 “Project 108” programme, expecting about 5,000 visitors. Culture & Tourism: Bhutan’s Black Mountain festival returns to Trongsa Oct 2–4, expanding activities along the Trongsa highway corridor and highlighting local communities and crafts. Regional Security: India hosted the 11th BIMSTEC counter-terrorism and transnational crime working group meeting with delegations including Bhutan, focusing on emerging threats and cooperation. Innovation Index: WIPO’s Global Innovation Index 2026 ranks Switzerland, Sweden, the US, Korea and Singapore top, while India and China climb quickly.

Crypto Regulation in Gelephu Mindfulness City: BTSE Bhutan has secured a Financial Services License from the Gelephu Financial Services Office, allowing regulated virtual-asset trading and institutional custody, with phased onboarding starting soon for BTC/USDT and ETH/USDT pairs. Public Health Milestone: The WHO has validated Bhutan’s elimination of dog-transmitted human rabies as a public health problem, with no dog-mediated human deaths since June 2023, ahead of World Rabies Day. Animal Welfare in Thimphu: Queen Mother Tshering Yangdoen Wangchuck inaugurated RSPCA Bhutan’s new animal shelter and care facility in Thimphu, a Nu 11.7 million centre for treatment, rehabilitation and longer-term care. Healthcare Policy: Bhutan’s National Primary Health Care Forum 2026 is underway in Tsirang, focusing on strengthening primary care and mapping a roadmap toward universal health coverage. Culture & Tourism: Trongsa’s Black Mountain festival returns for Oct 2-4, with community-led cultural experiences and a regional highway activation. Regional Context: India’s “Hasina dilemma” remains a live diplomatic challenge as Bangladesh seeks her extradition and New Delhi weighs security, credibility and rebuilding ties.

Bhutan Health & Policy: Bhutan’s first National Primary Health Care Forum 2026 is underway in Tsirang, with a push to strengthen primary care and map a roadmap toward universal health coverage, including governance, digital health, workforce, traditional medicine and sustainable financing. Sustainable Tourism: Bhutan’s Tourism Department and Chhukha district launched initiatives for sustainable tourism, including a new “Prosperous Phuentshogling” brand with digital promotion tools and a regulatory sandbox for local events. Culture & Community Tourism: The Black Mountain festival returns to Trongsa on Oct 2-4, expanding beyond the traditional venue via the Trongsa highway corridor and spotlighting local products, indigenous sports and Monpa community culture. Public Health Milestone: Bhutan has been certified rabies-free for dog-bite transmitted human rabies, with zero deaths since June 2023, credited to a long-running One Health approach. Entrepreneurship Drive: Bhutan’s National Entrepreneurship Strategy 2026 aims to help at least two home-grown enterprises reach over USD 50M valuation by 2030, with finance flagged as a key hurdle.

Bhutan-EU Talks: Bhutan and European Parliamentarians met in Bhutan to discuss climate resilience, renewable energy, adaptation finance, education and digital transformation, with Bhutan pushing for more resilient infrastructure as climate risks rise. Bhutan Economy & Jobs: Government targets at least two home-grown enterprises to reach over USD 50M valuation by 2030, but finance and scaling support remain key hurdles, especially for tech-led growth. Bhutan Business Spotlight: Thimphu’s first ramen shop, Hayate Ramen, is thriving despite high-altitude cooking challenges, marking its 10th anniversary and drawing steady crowds. Culture & Tradition: In Bumthang, devotees receive the Pakpa Wang “leather bag blessing” during Tamzhing’s Phagla Choedpa festival, a distinctive ritual tied to the Peling lineage. Regional Climate Diplomacy: Nepal’s “Sagarmatha to the Sea” UNGA event drew Bhutan and others to frame Himalayan-to-ocean climate risks as one connected crisis. Sports (Bhutan in focus): Bhutan’s archery team faced India in Asian Games compound quarterfinals, while Bhutan also appears in wider regional sports coverage.

Bhutan–EU Talks: Bhutan and European Parliamentarians met in Bhutan to discuss climate, energy resilience, digital transformation and the need for adaptation finance as the country faces rising climate risks. Bhutan Entrepreneurship Push: Bhutan’s National Entrepreneurship Strategy 2026 aims to back home-grown firms to reach international valuations above USD 50 million by 2030, but finance and scaling bottlenecks remain major hurdles. ICT Industry Gap: A new report flags a gap between Bhutan’s ICT policy ambitions and on-the-ground implementation, leaving the domestic tech ecosystem “stagnant.” Regional Climate Diplomacy: Nepal used UNGA to rally mountain and island nations around “Sagarmatha to the Sea,” with Bhutan among co-hosts, arguing climate risks don’t respect borders. Disaster Information Controls: A report on the Tibet–Nepal flood says Beijing restricted missing-person reporting and blocked social media, raising concerns that root causes are being shielded. Sports—Cricket Prep: Bhutan’s national cricket team arrived in Kathmandu to prepare for the ICC Men’s T20 World Cup Asia Qualifier in Malaysia, with practice matches planned in Pokhara.

Bhutan–EU Dialogue: Bhutan and European Parliamentarians met to discuss climate, energy and development, with Bhutan pushing for adaptation finance and resilient infrastructure as climate risks rise. National Health Milestone: Bhutan is highlighted for eliminating dog-mediated human rabies using a whole-of-society One Health approach, adding to regional public health wins. Trade Logistics Upgrade: Bhutan’s Mega Dry Port in Pasakha is completed and set to begin operations, aiming to streamline cargo clearance, reduce pressure on Phuentshogling, and bring key clearance agencies under one roof. ICT Industry Gap: A report flags a mismatch between Bhutan’s ICT policy ambitions and on-the-ground implementation, leaving the domestic tech ecosystem stagnant. Sports & Training: Bhutan’s national cricket team arrived in Kathmandu for ICC T20 World Cup Asia Qualifier preparations, with practice matches planned in Pokhara. Regional Spotlight: Bhutan’s presence also shows up in Asian Games archery coverage, where Bhutan teams faced India in quarterfinals and semifinals.

UN diplomacy and climate justice: Bhutan and EU parliamentarians met in Bhutan for talks on climate resilience, renewable energy, education and digital transformation, with Bhutan pushing for adaptation finance and resilient infrastructure. Regional leadership at UNGA: Bangladesh PM Tarique Rahman wrapped up a five-day UNGA visit in New York, holding meetings with leaders including Bhutan’s PM Tshering Tobgay and others on trade, investment, manpower and the Rohingya crisis, before flying to Dubai en route home. Himalayan climate push: Nepal used UNGA sidelines to rally mountain and island states around “Sagarmatha to the Sea,” arguing climate risks don’t respect borders and calling for coordinated action from glaciers to coasts. Bhutan’s new nature accounting: Bhutan announced it has become the first country to adopt Gross Ecosystem Product nationally, valuing ecosystem services at about US$6.2bn for 2024. Trade logistics: Bhutan’s Mega Dry Port in Pasakha is completed and expected to start operations, aiming to streamline customs and reduce pressure on Phuentshogling. ICT sector reality check: A report highlights a gap between Bhutan’s ICT policy ambitions and on-the-ground implementation. Sports: Bhutan’s national cricket team arrived in Kathmandu for ICC T20 World Cup Asia Qualifier preparations in Malaysia, with practice matches planned in Pokhara.

Climate Diplomacy: Nepal hosted “Sagarmatha to the Sea” at the UN in New York, led by Foreign Minister Shishir Khanal, linking Himalayan floods and glacier loss to rising seas and urging coordinated action across borders. UNGA Push for Resilience: Nepal PM Balendra Shah used his maiden UNGA address to call for a Himalayan Climate Resilience Mechanism led by Nepal, India and China, including shared satellite data, joint early-warning systems and cross-border disaster coordination. Bhutan’s Climate Accounting: Bhutan announced it is the first country to adopt Gross Ecosystem Product nationally, valuing ecosystem services at about US$6.2bn for 2024—positioned as a complement to GDP. Trade Logistics: Bhutan’s Mega Dry Port in Pasakha is completed and ready for operations, aiming to streamline customs and reduce pressure on Phuentshogling. ICT Bottleneck: A report flags hurdles—skills, financing and red tape—holding back Bhutan’s ICT industry despite policy efforts. Sports & Training: Bhutan’s national cricket team arrived in Kathmandu for ICC T20 World Cup Asia Qualifier preparations, with practice matches planned in Pokhara. Regional Finance Tech: Bangladesh Bank moved digital-bank proposals into a preparation phase, including a Bhutan-linked DK Bank entity.

Bhutan’s Nature-Led Economy: Bhutan has become the first country to adopt Gross Ecosystem Product (GEP) at national level, valuing ecosystem services at about US$6.2 billion for 2024—positioned to complement GDP and Gross National Happiness. Trade Logistics Upgrade: Bhutan’s Mega Dry Port in Pasakha is completed and ready for operations, aiming to streamline cargo clearance, reduce pressure on Phuentshogling, and bring key agencies under one roof. UN Climate Push (Nepal, with regional resonance): Nepal PM Balendra Shah used his UN General Assembly address to argue that poorer Himalayan countries face a “double burden” from climate impacts and wars they didn’t start, calling for climate justice and better global supply priorities. Himalayan Resilience Proposal: Shah also urged a Himalayan Climate Resilience Mechanism led by Nepal, India and China, including shared satellite monitoring and joint early-warning systems. Regional Payments Watch: UPI is now accepted in 11 countries including Bhutan, as India prepares to introduce UPI MDR charges from October 15—raising questions about how costs will apply abroad. Digital Banking in South Asia: Bangladesh Bank issued letters of intent for five digital banks, including DK Digital Bank backed by Bhutan’s DK Bank, moving them into a preparation phase before full licences.

Gross Ecosystem Product (GEP): Bhutan has become the first country to adopt Gross Ecosystem Product at the national level, valuing ecosystem services at about US$6.2 billion for 2024, with Prime Minister Tshering Tobgay announcing it at Climate Week and the Science Summit in New York. UN climate diplomacy: Nepal PM Balendra Shah used his UNGA speech to argue that “climate justice” must move beyond UN documents, calling for action after the Bhotekoshi-Trishuli floods and urging stronger international responsibility for disaster-hit, low-emission countries. Himalayan resilience push: In the same UNGA setting, Nepal proposed a Himalayan Climate Resilience Mechanism led by Nepal, India and China, focused on shared satellite data, glacial lake monitoring and joint early-warning systems. Connectivity question for Nepal: Pokhara International Airport welcomed its first daily international flight (Flydubai), but coverage flags uncertainty about whether Nepal can sustain more international routes beyond Kathmandu. Digital banking regionally: Bangladesh Bank issued letters of intent for five digital banks, including DK Digital Bank backed by Bhutan’s DK Bank, as the country moves toward more branchless banking. Football governance shock: FIFA suspended Nepal’s ANFA indefinitely over “third-party interference,” leaving players and youth development in limbo and sparking calls for collective action.

Gross Ecosystem Product (GEP): Bhutan has become the first country to adopt the Gross Ecosystem Product at national level, valuing ecosystem services at about $6.2bn for 2024, announced by Prime Minister Tshering Tobgay in New York. Gelephu Mindfulness City (GMC): Bhutan used the UN General Assembly to pitch Gelephu Mindfulness City to investors, with a push for clean energy, connectivity and sectors like AI and data centres, plus new rules for family offices and funds to access tax incentives from 1 October—linked to hiring Bhutanese and local spending. UN diplomacy: Bhutan’s UNGA presence also included PM Tobgay’s Gelephu pitch, while regional attention remains on UNGA’s high-level week and shifting priorities. Digital banking in the region: Bangladesh Bank issued letters of intent for digital banks, including one backed by Bhutan’s DK Bank, as the country moves toward branchless banking and wider financial inclusion. Business and markets: Druk Wang Alloys reported a turnaround to a Nu 78.10m net profit for FY ending June 30, 2026, after revenue rose 28.4%. Consumer protection: Bhutan’s competition watchdog warned about online advertising and advance-payment scams, following a Monggar case where a TikTok-linked seller allegedly failed to deliver goods.

Gelephu Mindfulness City Finance Push: Bhutan used the UN General Assembly week to pitch the Gelephu Mindfulness City (GMC) to investors, with Prime Minister Tshering Tobgay calling for partners to “build the future” and outlining tax incentives tied to job creation and local spending. Nature Accounting Breakthrough: Bhutan also announced it has measured its Gross Ecosystem Product (GEP) for 2024 at about $6.2 billion, positioning natural capital alongside GDP and GNH in national planning. Corporate Turnaround: Druk Wang Alloys Limited reported a sharp swing to profit—Nu 78.10 million for the year to June 30, 2026—after revenue rose 28.4% to Nu 1.624 billion. Pension Fund Snapshot: The National Pension and Provident Fund (NPPF) disclosed a Nu 74.02 billion portfolio, led by term deposits and loans. Consumer Protection Alert: Bhutan’s Competition and Consumer Affairs Authority warned about social-media scams and advance-payment fraud, urging buyers and promoters to verify businesses.