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Ease of doing business: 161 issues resolved, 53 under review

July 3, 2025
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In a major push to improve the ease of doing business, the government said it has resolved most of the regulatory hurdles identified as barriers to economic activity. Presenting the State of the Nation report today, Prime Minister Tshering Tobgay reaffirmed the government’s commitment to further reducing such obstacles to boost efficiency and spur economic growth.

The regulatory challenges were identified following executive orders issued during the government’s first day in office last year.

The private sector identified 214 issues as being hindrances to carrying out business operations.

Over the course of the year, the issues were discussed with the agencies concerned, and 161 issues have been resolved.

One issue identified by the private sector is the need to reintroduce students loan scheme which was managed by the erstwhile Department of Adult and Higher Education. This issue stands resolved as the Government will roll out the Education Loan Programme very soon.

Another issue raised was the need to allow foreign investment in Early Childhood Care and Development (ECCD), as the current FDI policy only mentions primary, secondary, and higher education. However, it was later clarified that foreign investment in ECCD is already allowed since it is not included in the policy’s negative list.

The negative list prohibits FDI in areas like news media, retail and wholesale trade, mining of raw minerals, three-star and below hotels, general health services, industries without a certificate of origin, and activities banned by the government.

Tshering Tobgay, Prime Minister said, “Although we have a strong system of rules and regulations, the sheer volume and complexity of the existing rules and regulations can hinder efficiency and progress of economic activities. If we don’t streamline them, it will impact our country’s economic development. That’s why, this year, the government reviewed and streamlined 214 hurdles, reducing them to 161. Personally, I still believe that even 161 is too many. So, in the coming year, we will once again review these regulations and reduce them further.”

The remaining 53 issues will be discussed with relevant agencies, and if needed, referred to the cabinet for guidance.

Samten Dolkar/Sonam Yuden

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