New economic policy in the offing
Thimphu, April 09, 2009: The new economy policy devised by the Ministry of Economic Affairs has give more teeth for additional area in foreign direct investment, to which Bhutan had remained closed for decades.
The new policy has provisions for incentives such as tax concession, to attract foreign investments. The FDI Policy 2009 is likely to be more liberal than the one brought in 2002, which was a little restrictive for foreign investors. The government has already approved 13 projects under FDI but only four are actively operating – two hotels, a security service company and a fat manufacturing company.
The policy will spell out the different agencies to keep track of inflow of hard currency, employment generated and immigration issues. The ministry officials express hope that the new policy will encourage private sector and foreigners for more investment.
The foreigners are given more liberty to invest in service industry such as information technology, health, and education though hydropower will be a major area.
The draft policy has been submitted to the Gross National Happiness Commission (GNHC) and will be forwarded to cabinet for approval shortly.