Reviewing the Annual Performance Agreement (APA) of the economic affairs ministry today, Prime Minister Dr Lotay Tshering said economic diversification must be prioritised. There is a need for new ideas and patterns of economic practices. He also said the future planning must be result-oriented and impact based.
Dr Lotay Tshering said, today, Bhutan’s economy is import driven, meaning its imports exceed the exports. It is also majorly dependent on the revenue from hydropower projects. Although the policy of self-sufficiency looks at and guides to reducing import, he added, due to the country’s geographical features, there are many restrictions to the policy.
Such issues, the Prime Minister said, must be properly analysed while framing any plans and policies. At the moment, Dr Lotay Tshering said, the economic plans are mostly short-sighted.
“In case if Sunkkosh project comes, what will be your requirements? What would be the skills required? This, I was expecting, should have been already ready. At the ministry level and government level, taking a cue from the past hydropower projects, what are the skills non-Bhutanese are occupying right now? If this spots, we could take it through, how many spots we could take? We have to do it government to government at a policy level.”
The prime minister also added that there must be more focus on the cottage and small industry (CSI) sector which not just contributes to job creation but also adds to the country’s economy. The sector’s development is one of the flagship programmes the government has identified in the current Plan. From the ministry’s side, of its approved budget of a little over Nu 1bn in this fiscal year, more than half is allocated for the departments of industry and, cottage and small industries.
Similarly, with 29 success indicators, enhancing economic growth through sector diversification holds the highest weightage in the ministry’s APA.
“We are giving a lot of attention to economic diversification. Now all the activities that will ultimately be helping or supporting this move should get priority. It should get more weightage,” the prime minister added.
The other objectives in the agreement include promoting the use of alternative renewable energy, enhancing sustainable hydropower generation and transmission system expansions, and reducing the risk associated with geo-hazards among others.
