Bhutan’s third Voluntary National Review 2025 paints a mixed picture of the country’s development journey, significant gains in poverty reduction, health, and climate action, but persistent challenges in employment, gender equality, and financing. The report, prepared ahead of the UN High-Level Political Forum, comes as Bhutan navigates its post-LDC status with the ambitious goal of achieving the 2030 Sustainable Development Goals.
The report, which reviews Bhutan’s progress on all 17 Sustainable Development Goals, highlights remarkable achievements since 2015.
According to the review, Bhutan’s poverty rate has fallen from 28 per cent in 2017 to 11.6 in 2022, with extreme poverty nearly eradicated.
Further, deaths among mothers and young children have dropped, access to safe drinking water is almost universal, and forest cover remains above 69 per cent, reaffirming Bhutan’s status as the world’s only carbon-negative country.
The report also commended Bhutan’s progress in digital transformation, including the introduction of the National Digital Identity and online government services. Small business owners in the capital acknowledged that Bhutan’s digital landscape is indeed progressing, benefiting the citizens.
“We are in a good era where everything is going digital. The apps made by the concerned agencies are helping us, like renewing our driving license or booking air tickets straight from our smartphones,” said Nanda Lal Pradhan, Shopkeeper, Thimphu.
Despite these achievements, the report warns of slow progress in decent work and economic growth, SDG 8, because of rising youth unemployment and migration.
As of December 2024, an estimated 64,000 Bhutanese were reported to be residing in 111 countries, excluding the unregistered Bhutanese living abroad.
“It is good to see Bhutan being recognised for its environment and happiness. But for youth like us, employment is still a big issue. Many of my friends went to Australia just because opportunities here are limited,” said Sumitra Maya Subba, a High School Graduate, Thimphu.
“Our country is developing, but at the same time, the cost of living has gone up compared to before. For example, earlier we could buy 10 pieces of doma for Nu 20, but now even Nu 50 can’t buy six pieces of doma,” said Passang Dorji, Resident, Thimphu.
Additionally, gender disparities in employment and STEM education remain significant. In 2024, women constituted only four per cent of the total members of parliament.
According to the report, Bhutan’s graduation from the Least Developed Country category in 2023 has also reduced foreign grants by approximately 26 per cent, affecting developmental activities.
To address these gaps, the report calls for urgent action to accelerate the 13th Five-Year Plan and the 21st Century Economic Roadmap, and scale up innovative financing such as green bond whereby public and private institutions issue security debt to finance projects that contribute positively to the environment and climate.
The report also recommends fostering inclusive partnerships with civil society and the private sector.
Kinley Bidha
Edited by Phub Gyem
