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Category: Bhutan

Asian Diplomacy is a fast growing news portal. Where you will find the all latest Bhutan news.

  • Bhutan hosts first ANTAM meeting to boost farm machinery standards

    Bhutan hosts first ANTAM meeting to boost farm machinery standards

    The use of agricultural machinery has transformed traditional farming. In Bhutan, where farmers work on steep terrains and fragile ecosystems, using safe, efficient, and environmentally friendly machines is important. To support this, Bhutan is hosting a three-day annual meeting of the Asian and Pacific Network for Testing of Agricultural Machinery or ANTAM, for the first time. The meeting brings together 15 member countries to standardise testing and improve the safety and quality of farm machinery across the region.

    The Asian and Pacific Network for Testing of Agricultural Machinery (ANTAM), led by the United Nations Economic and Social Commission for Asia and the Pacific, is a regional network that promotes safe, sustainable and high-quality agricultural machinery through standardised testing. Bhutan became a member of the regional network in 2019.

    Adopting ANTAM testing codes ensures that farm machines are tested the same way in different countries. This makes safe, efficient and eco-friendly agricultural machinery easier to trade, more available and more affordable for farmers.

    “If a manufacturer of machinery tests the machine here in Bhutan or in another testing station that participates in this, the test report is the same. It’s consistent. So, this facilitates the trade of machinery that is safe, efficient, and has with low environmental impact. If the trade is easier, this means that it becomes more available for the smallholder farmers. And if the trade is easier, it becomes also more affordable for the smallholder farmers,” said Marco Silvestri, Programme Officer/Deputy Head, Centre for Sustainable Agriculture Mechanisation, UN ESCAP.

    There are more than 10 private companies in the country that import and sell farm machinery. The Agriculture Machinery and Technology Centre in Paro, staffed with five people, tests these companies’ machinery.

    Bhutan has a national standard that tests over 20 types of farm machinery, but only a few have been aligned with ANTAM standards.

    Officials said this meeting is an opportunity to access improved technologies and strengthen national testing capacity.

    “Aligning standards is not a big task. So, it is just to adopt, it’s just to follow. And it’s just about getting the systems in place. So, in that way, I think definitely we can use ANTAM standards here in Bhutan. So, if you look at ANTAM, ANTAM is a group of countries trying to promote farm machinery and keep the farm machinery equipment in better shape or have efficient and good quality equipment for the farmers,” said Karma Tshetrim, Head of Standard Division. Bhutan Standard Bureau, MoICE.

    “If I need training for certain machine testing, they give us such capacity-building training. They call us from a different country, such as Thailand. Thailand use a combine harvester, but it is not feasible in Bhutan considering our mountainous geography. However, they call us and teach us how to test. These standards and test code are something we made together. They even take our feedback,” said Pema Wangmo, Agriculture Engineer, Agriculture Machinery Technology Centre, Paro.

    By aligning with global testing standards, Bhutan is paving the way for a future where quality farm machinery becomes the norm rather than the exception.

  • Bhutan Amplifies Call For Global Peace At Prayer Festival

    Bhutan Amplifies Call For Global Peace At Prayer Festival

    Thimphu: Amid the towering Himalayas and cascades of fluttering prayer flags, Bhutan turned into a radiant sanctuary of devotion as thousands gathered for the Global Peace Prayer Festival, one of the most spiritually defining moments for the Buddhist world.

    Central to this year’s festival was the Kalachakra empowerment ceremony, a powerful and ancient Buddhist ritual invoking universal harmony and inner balance.

    Chorten Dorji, Secretary of the Central Monastic Body, highlighted the profound depth of this moment: “The Kalachakra empowerment ceremony inaugurated by the Honourable Prime Minister of India alongside His Majesty the King holds deep spiritual significance. The rituals and traditions of Kalachakra harmonise both physical and subtle elements within us, fostering universal peace and harmony. During the Global Peace Prayer Festival, this empowerment made the profound practices of Kalachakra accessible to international practitioners, strengthening our collective aspirations for global peace.”

    The festival’s spiritual magnitude was further elevated by a historic milestone, the ordination of nearly 270 nuns at Tshalumaphey in a landmark Gelongma ceremony.

    This long-awaited revival restored the highest monastic vows for women, an ancient practice absent for centuries across much of the Buddhist world.

    Adding to the sanctity of the moment was the ceremonial display of rare and revered Buddha relics, which drew pilgrims from Bhutan, India, Nepal, Southeast Asia and beyond.

    Karma from Bhutan’s Department of Culture emphasised the significance of this moment for the nation: “It is a very auspicious and historic event for us in Bhutan. This is the first time that the sacred Buddha relics have been brought to our country. We received them with a grand procession, equivalent to welcoming a head of state. Since opening the relics for public viewing, there has been a continuous stream of people coming to offer prayers. This has been made possible thanks to the warm and friendly relations between our two countries and the collaboration between the International Buddhist Confederation and the National Museum of India, the custodians of the relics.”

    The festival also carried diplomatic significance, with Prime Minister Narendra Modi, who joined the congregation, further strengthening the deep cultural and spiritual ties shared between India and Bhutan and amplifying the festival’s global message of peace and unity.

    In its entirety, the Global Peace Prayer Festival became more than an event. It marked a spiritual renaissance.

  • India’s Modi visits Bhutan to open hydropower project

    India’s Modi visits Bhutan to open hydropower project

    Indian Prime Minister Narendra Modi flew to neighbouring Bhutan on Tuesday to open a giant hydropower project with the king of the Himalayan nation, where electricity is its key export.

    Carbon-negative Bhutan has aggressively promoted hydropower projects, earning substantial revenue by exporting electricity to energy-hungry India, as well as utilising the cheap power for its own drive to mine cryptocurrency.

    Modi and King Jigme Khesar Namgyel Wangchuck are scheduled to inaugurate the 1020 megawatt Punatsangchhu-II hydropower project, co-developed with India and among the biggest in Bhutan.

    “The visit will also mark another major milestone in our successful energy partnership”, Modi said in a statement as he departed New Delhi.

    Tiny but strategic Bhutan is squeezed between giants China and India, and courted by both.

    Modi said his visit would deepen ties and that their partnership was a “key pillar” of India’s “neighbourhood first” policy.

    India is Bhutan’s main trading partner, making up more than 80 percent of its trade – $1.78 billion overall in 2024-25 – according to India’s commerce ministry.

    Bhutan’s embassy in New Delhi says hydropower contributes nearly two-thirds of its total exports.

    India’s exports to Bhutan totalled $1.3 billion in 2024-25, ranging from petroleum products to iron and steel, grains and smartphones. Bhutan in turn exported products totalling $513 million, including electricity and construction materials.

    New Delhi said in September it would build the first cross-border railway to Bhutan.

    Bhutan champions a policy of prioritising “Gross National Happiness” over growth but that has not helped the government deal with widespread unemployment, forcing thousands of young people to leave the country.

    Bhutan’s GDP per capita is around $3,718, according to the World Bank.

    The mountainous kingdom is seeking to diversify its economy, taking advantage of abundant hydropower and a cool mountain climate to power vast computer farms to mine cryptocurrency.

    Its state-run Druk Holding and Investment (DHI) invested $539 million – nearly a fifth of its total GDP – to establish cryptocurrency operations in 2021-2022, according to the World Bank.

    It has since developed sizable crypto holdings, although the exact value is not public.

  • Gelephu Mindfulness City: Bhutan’s experimental economic hub of the future

    Gelephu Mindfulness City: Bhutan’s experimental economic hub of the future

    Bhutan, the country that introduced the world to the concept of Gross National Happiness (GNH), has long prioritised well-being over sheer economic growth.

    Now, in a bold move, the Himalayan kingdom is launching the Gelephu Mindfulness City (GMC), an ambitious project that aims to serve as an interconnected bridge of sustainable development between South and Southeast Asia.

    The city will also serve as the epicentre for testing and implementing new policies, technologies and governance models, functioning as a model for reform, where progressive ideas and systems will be piloted before scaling them nationwide.

    According to the World Bank, trade between South Asia and Southeast Asia grew ninefold between 2000 and 2018, rising from $38 billion to $349 billion.

    Bhutan’s government hopes to capitalise on this growth by using Gelephu and Samdrup Jongkhar as key trade corridors, linking India to Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, and Singapore.

    Their King Jigme Khesar Namgyel Wangchuck announced plans for the city on National Day, 17 December 2023, describing it as a historic turning point. “Gelephu will become a gateway connecting Bhutan to the world and the future — a gateway to markets, capital, new ideas, knowledge, and technology,” he declared.

    They will establish a Special Administrative Region (SAR) to grant Gelephu executive autonomy and legal independence, setting it apart from conventional Special Economic Zones (SEZs). That means it will have its own legal and financial system.

    However, unlike SEZs in many countries that attract businesses indiscriminately, Bhutan plans to carefully screen and invite companies aligned with its values of sustainable and equitable development.

    The city will be spread over an area of more than 2,500 sq km (965 sq miles) on the border with neighbouring India and offer space to businesses working on finance, tourism, green energy, technology, healthcare, agriculture, aviation, logistics, education and spirituality.

    The GMC project is structured around three key pillars: energy, connectivity and skill development.

    Bhutan’s small economy faces the challenge of attracting foreign investment while protecting its sovereignty and sustainability. But will global investors adapt to its unique regulations?

    Bhutan plans to attract investments by offering competitive regional hydropower pricing while also tapping into alternative sources like solar, wind and thermal energy. Gelephu’s international airport and digital infrastructure investments will enhance global access. The initiative aims to equip their workers with skills for a modern economy.

    The Mindfulness City will be home to one to two million people. How will their daily lives be?

    As Bhutan is a carbon-negative country, GMC will operate on 100% renewable energy. The city will promote walking and cycling to reduce emissions, green spaces for meditation and relaxation, mindfulness-based education, public community activities, healthcare and wellness centres, and eco-tourism.

    It incorporates Bhutanese culture into architecture, the protection of farmlands, wildlife sanctuaries, and heritage. The environment-friendly city will have no structure taller than the trees, with minimal, mostly residential structures near the sanctuaries and farmlands, and most structures concentrated towards the centres.

    Gelephu, a vast flatland, will be even more accessible once the envisaged transportation infrastructure is completed. The government of India has committed to connecting border towns with railway lines and developing and improving major roads leading to Bhutan.

    How the city could benefit India

    Gelephu is strategically situated on the Assam border, offering convenient access to other districts within Bhutan as well. It has long been a passage between Bhutan and India, serving as an important trading post and transit point for monks and traders moving between the Indian plains and Bhutanese highlands.

    The Mindfulness City will be spread over an area of more than 2,500 square kilometres (965 sq miles) on the border with neighbouring India. It offers space to businesses that work on finance, tourism, green energy, technology, healthcare, agriculture, aviation, logistics, education, and spirituality.

    “It is designed for Bhutan. But it is not just for Bhutan. It is going to benefit Assam and all of India,” Bhutan’s Prime Minister Tshering Tobgay told The Week. “We see it as an economic gateway for the world to India and through India to Southeast Asia.”

    Gelephu, a town at the moment, has significantly benefited from Bhutan’s flourishing tourism industry, attracting a substantial number of visitors from Assam. The outreach will only get bigger with the GMC being centred around Gelephu, giving the landlocked country access to global markets.

    India is also playing a pivotal role in the creation of the city. Assam Chief Minister Himanta Biswa Sarma visited Bhutan last December, bringing further excitement to the plans of building the first India-Bhutan rail link connecting Kokrajhar and Gelephu, where they also plan to build an international airport.

    Gelephu’s location on the Indian border provides strategic advantages, but also complexities, such as its relationship with China. But Bhutan understands very well the importance of balancing relations with its two big neighbours. Thus the city aims to bring India and Bhutan closer without disturbing the former’s comfortable relationship with China.

    With the GMC project, it aims to keep up with the demographic advantages and the rapid economic growth of the neighbours.

    The project’s timeline is 21 years, but the expansion of infrastructure would be an ongoing process. Similar large-scale initiatives have faced delays worldwide. Whether Bhutan will be able to maintain momentum and political will over such an extended timeline remains to be seen.

  • Is Bhutan becoming a smuggling conduit for heroin?

    Is Bhutan becoming a smuggling conduit for heroin?

    In a major crackdown on drug trafficking, customs officials at Paro International Airport have intercepted three heroin smuggling attempts in recent months (December, January and February), seizing a total of 31.5 kilogrammes (kg) of the illicit contrabands.

    The increased frequency of such interceptions has heightened fears that Bhutan is increasingly being targeted as a transit point by global narcotics networks, raising concerns about the country’s potential vulnerability to becoming a conduit for international drug smuggling operations.

    While the country has dealt with controlled substances such as marijuana and pharmaceutical drugs, the emergence of heroin is also a concerning shift in the ongoing struggle against drug-related challenges.

    The quantity of heroin seized has also escalated significantly from 4 kg to 9 kg, which reached to 17 kg in the latest drug bust.

    In the most recent case on February 4,  a 37-year-old Indian man was apprehended with 17.1 kg of heroin, in what is the largest seizure to date. He was travelling with his 27-year-old wife and five-year-old daughter. His wife was released after her involvement was ruled out along with her five-year-old daughter.

    In January, a 28-year-old Indian man was intercepted with over 9 kg of heroin hidden in his checked-in luggage. He was travelling alone on a flight from Bangkok to Paro.

    In another incident, a 50-year-old Indian man travelling alone from Bangkok to India via Paro was caught with 4.6 kg of heroin on December 22, 2024.

    The heroin consignments had passed undetected through three international airports—Laos, Vietnam, and Thailand.

    An official from the Ministry of Finance (MoF) said smugglers used sophisticated methods to smuggle the drugs. “The drugs were concealed in re-stitched suitcase linings, factory-sealed coffee packets, and commercially packaged food products, making detection through conventional screening methods extremely challenging.”

    Customs enforcement teams were able to identify and apprehend the suspects through rigorous risk profiling and behavioural assessment.

    While the successful operations highlight the vigilance of Bhutanese Customs in tackling transnational crimes, officials said that some cases may have gone undetected due to the limitations of existing screening systems.

    The intercepted cases involved smugglers arriving via direct flights from Thailand, with short stays in Bhutan and planned exits to India by land or air.

    The 37-year-old man from Mumbai, who was traveling with his family and the suspect is currently under police detention.

    According to police investigations, his trip to Laos was fully funded by handlers, who offered him a free trip in exchange for transporting a parcel. The family stayed in Laos for 13 days before traveling to Bhutan. A day before their departure, an unknown woman handed him a suitcase and a backpack.

    The suspect in his statement to police claimed he was unaware of the drugs.

    “The consignment was intended for delivery to Delhi, with the family planning to stay overnight in Paro before travelling to Phuentsholing to hand over the drugs across the border,” said a police official.

    Paro police described the smuggling attempt as unusual. The heroin was concealed in factory-sealed coffee packets and waffle sweets to avoid detection. Additionally, in the backpack, heroin was hidden inside an airtight plastic layer that had been stitched back into place.

    Paro police said that the packages appeared to be genuine Lao-made coffee and coffee mate, but upon opening, heroin was found.

    The suspect and his family were to stay a night in Paro before taking a taxi to Phuentsholing, where the drugs were to be handed over across the border.

    MoF officials emphasised the urgent need for advanced drug detection technology, enhanced personnel training, and stronger inter-agency collaboration to prevent Bhutan from becoming a soft target for organised drug syndicates.

    Immediate measures proposed include deploying sniffer dogs at key entry points, increasing the number of female customs officers for effective security checks, implementing AI-driven passenger risk profiling systems to proactively detect high-risk travelers.

    Meanwhile another official from the MoF stressed the importance of strengthening customs capacity not only at the airport but also at all other entry points to Bhutan.

    “Authorities should closely monitor traveler behavior, with those displaying suspicious conduct subjected to thorough checks. Additionally, coordination with key stakeholders is essential to develop effective strategies to curb such illegal activities,” the official said.

    In addition to airport seizures, heroin has also been intercepted in border areas. Last July, a 38-year-old truck driver was arrested at the Samdrupjongkhar Integrated Check Post for allegedly carrying hard drugs.

    Authorities discovered 0.61 grammes of suspected drugs concealed in five test tubes hidden in the truck’s glove compartment. Tests conducted by the Bhutan Food and Drug Authority (BFDA) confirmed the substance to be heroin.

    The Department of Revenue and Customs has called for heightened border security vigilance and international cooperation to combat the growing sophistication of drug smuggling networks.

    The two Indian nationals arrested in December and January are currently in detention. Police have forwarded their case to the Office of the Attorney General.

    They face charges of illegal transaction of controlled substances, which carries a prison sentence of nine to 15 years under Bhutan’s Penal Code.

    Meanwhile the 37-year-old suspect from the February case is also in police custody, with investigations still ongoing.

    Samples from the seized packages were sent to the BFDA, which confirmed the presence of heroin.

    According to the police the detainees are suspected to be drug carriers.

  • Bhutan’s new inland waterway terminal to boost trade with Bangladesh and India

    Bhutan’s new inland waterway terminal to boost trade with Bangladesh and India

    The terminal, part of India’s effort to enhance National Waterway 2 on the Brahmaputra, is a major cargo and river tourism hub.

    With the inauguration of the Jogighopa Inland Water Transport (IWT) terminal on the Brahmaputra River in Assam, India, Bhutan has access to a new riverine trade hub that will boost its trade with Bangladesh and India.

    The new terminal is located in the Bongaigaon district and is expected to provide a new efficient, cost-effective route for Bhutanese exports, says Phnom Penh Post.

    The inaugural shipment, carrying 110 metric tonnes of coal and stone chips to Bangladesh, was flagged off on February 18 by Indian Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, and Bhutan’s Minister of Industry, Commerce, and Employment, Namgyal Dorji.

    The terminal, part of India’s effort to enhance National Waterway 2 on the Brahmaputra, is a major cargo and river tourism hub. Located 108 km from the Bangladesh border and 147 km from Guwahati via waterways, it is set to boost trilateral trade between Bhutan, Bangladesh, and India.

    Speaking at the event, Lyonpo Namgyal Dorji said that with the operation of the terminal, Bhutan stands to benefit from greater trade efficiency, reduced logistics costs, and enhanced export potential. “Beyond India, it will greatly boost our existing trade and exports to Bangladesh,” he said.

    “Furthermore, this terminal will play a pivotal role in advancing the goals of the upcoming Gelephu Mindfulness City, providing a sustainable and efficient transport link to global markets,” Lyonpo said. “What is coming here indeed holds great potential and promise for our cooperation and collaboration.”

    The IWT is a key port for trade between India and Bangladesh, following the memorandum of understanding (MoU) to develop an economic corridor under the Bharatmala Programme, including the Dalu-Tura-Goalpara-Gelephu multi-modal route.

    Indian Union Minister Sarbananda Sonowal said the terminal will transform regional connectivity, particularly for Bhutan, India, and Bangladesh. “Its strategic position enables it to serve as an economic multiplier for the region, exemplifying Prime Minister Narendra Modi’s ‘Neighbourhood First’ doctrine,” he said.

    Currently, boulders from Gelephu are exported to Bangladesh and India via surface transportation to Dhubri Port (133 km) in Assam and Nakugaon (281 km) in Bangladesh. Reaching Bangladesh requires crossing two Indian states—Assam, and Meghalaya—making transportation both challenging and costly.

    Most shipments rely on Indian trucks, with only a handful of Bhutanese truckers involved, often facing logistical and regulatory hurdles along the highways. However, exporters say the Jogighopa terminal will significantly reduce travel distances and allow for greater involvement of local Bhutanese truckers.

    Exporter of Dendup Mines and Minerals in Gelephu, Lobzang Tsering, said the operation of the Jogighopa terminal will make the export and import of raw materials more convenient. “We previously attempted to ship via Jogighopa, but without a proper water terminal, we had to rely on Dhubri. Now, this will be a game-changer for logistics,” he said.

    The owner of Vajrataa Exporters, Chencho Gyeltshen, said the facility would not only boost revenue but also expedite trade documentation. “The terminal will help clear letters of credit (LCs) faster, allowing for daily shipments instead of the four-day delays we face at other ports,” he said.

    However, traders still face bureaucratic delays at border checkpoints in Bhutan and India, which slow down exports.

    “If a dedicated customs counter were set up to fast-track documentation, we could dispatch two shipments a day, as the border gate operates 24 hours,” Chencho Gyeltshen said. “Both countries will benefit as we employ Indian trucks.”

    While inland waterways offer a cheaper alternative to road transport—allowing large cargo volumes to move at once, particularly during the monsoon—exporters remain concerned about seasonal fluctuations. During winter, reduced water levels in the Brahmaputra can prevent cargo vessels from operating at full capacity.

    Built at a cost of INR 820 million on a 15-acre site, the Jogighopa terminal features a reinforced cement concrete (RCC) jetty, storage facilities, parking areas, customs and immigration offices, and amenities for traders and truckers.

    A four-lane road connects it to the national highway, while a planned railway broad gauge siding will further enhance its connectivity with the Multi-Modal Logistics Park at Jogighopa.

    The terminal will handle key commodities such as food grains, fertilizers, coal, petroleum products, edible oil, fly ash, and stone chips.

    Bhutanese officials said that the terminal’s strategic location will help Bhutan facilitate smoother export and import processes, particularly for key goods such as agricultural products, boulders, and manufactured items to India and Bangladesh.

    In December 2020, the Indian government agreed to open the Jogighopa terminal along with Nagarkata, Agartala, and Pandu to boost trade and transit. Bhutan also signed an MoU with Bangladesh to use the Brahmaputra’s inland waterways, accessing Chilmari port.

  • Will Starlink disrupt Bhutan’s local internet market?

    Will Starlink disrupt Bhutan’s local internet market?

    Starlink’s recent entry into the country promises high-speed connectivity, potentially disrupting the market long dominated by Bhutan Telecom and TashiCell—the two major telecom companies and internet service providers in Bhutan.

    Starlink Services Private Limited announced its launch in Bhutan on February 11 via X, formerly Twitter, nearly seven months after the government initiated talks to introduce the service.

    According to telecom licensing and regulatory body, Bhutan Information and Media Authority (BICMA), Starlink’s license allows it to only provide internet services through user terminals and does not authorise cellular services directly from Starlink satellites to mobile devices.

    Starlink in Bhutan, as per BICMA, will offer residential, priority, mobile priority, roam and residential lite services.

    With flexible service plans and a local payment gateway in development, the full impact of Starlink on affordability and accessibility is yet to be seen.

    Cost vs. Performance

    BICMA data shows that Starlink’s residential plan, priced at Nu 4,200 per month, provides download speeds of 25 to 110 megabits per-second (Mbps) and upload speeds of 5 to 10 Mbps, with unlimited data.

    In comparison, Bhutan Telecom’s Internet Leased Line (ILL) service charges Nu 5,500 for 10 Mbps while TashiCell offers the same bandwidth for Nu 8,700.

    For higher bandwidth, TashiCell’s ILL pricing structure ranges from Nu 935 per five to eight Mbps to Nu 550 per Mbps for connections exceeding 100 Mbps. For instance, a five Mbps plan from TashiCell under the ILL would cost Nu 4,675 while for 100 Mbps it would cost Nu 55,000.

    The pricing structure for Starlink’s services offers flexibility. The priority plans, aimed at businesses and high-demand users, start at Nu 5,900 for 40 GB and go up to Nu 106,000 for six terabytes (TB), providing significantly higher data allowances than current offerings from local providers.

    Starlink’s hardware ranges from Nu 17,000 for the Mini Starlink Kit to Nu 231,000 for the Flat High-Performance Kit, excluding shipping.

    Experts say while the initial cost of Starlink equipment may deter some users, the long-term benefits of the high-speed and low-latency internet could outweigh the investment.

    A major advantage of Starlink is its accessibility in remote areas where local internet service providers struggle with infrastructure limitations. This could be especially beneficial for businesses, educational institutions, healthcare centres and government agencies requiring reliable and high-speed internet.

    Another key difference is the flexibility of Starlink’s plans compared to the fixed-rate structure of ILL services from Bhutan Telecom and TashiCell.

    While ILL services are typically suited for businesses and institutions requiring dedicated bandwidth, Starlink’s offerings allow for scalability and flexibility, making them an attractive option for a wider range of users, from individual households to enterprises.

    Currently, a standardised method of paying for Starlink through local banks is non-existent. However, Bhutanese customers will soon be able to make payments through a gateway which is currently being developed.

    According to BICMA, Starlink Services Pvt. Limited is working to make its services available with local currency payments, after which, interested users can purchase Starlink equipment with Ngultrums rather than USD.

  • Bhutan seeks jt venture investment with BD on hydropower

    Bhutan seeks jt venture investment with BD on hydropower

    Bhutan is keen on joint venture investments with Bangladesh to tap into the hydropower potential of the Himalayan kingdom, Bhutanese Ambassador Rinchen Kuentsyl said on Tuesday.

    Bhutan has also taken steps to sign an agreement with Bangladesh’s submarine cable company to get an alternative internet connection from Dhaka, he said.

    The ambassador discussed the issues of mutual interest during his farewell call on Chief Adviser Professor Muhammad Yunus at the State Guest House Jamuna in Dhaka, reports UNB.

    The ambassador said during his four-year-long stay in Dhaka, the relationship between the two countries has deepened.

    He also said the work on the exclusive Special Economic Zone (SEZ) for Bhutanese investors in the northern district of Kurigram was progressing fast and it would create jobs for thousands of people.

    During the meeting, they also discussed issues of mutual interest, including growing educational ties between the two South Asian nations.

    Professor Yunus thanked the ambassador for his efforts to bring two countries closer and for being a “good friend” of Bangladesh.

  • Bangladesh, Bhutan optimistic on PTA potentials

    Bangladesh, Bhutan optimistic on PTA potentials

    Bangladesh and Bhutan have expressed optimism that they would be able to maximize the potential of the Preferential Trade Agreement (PTA), signed between the two neighbours.

    This was observed when Bhutanese Ambassador to Bangladesh Rinchen Kuentsyl made a farewell call on Foreign Secretary Md Jashim Uddin at the State Guest House Padma on Sunday, according to a foreign ministry’s press release.

    During the meeting, both sides discussed various aspects of the Bangladesh-Bhutan bilateral relations.

    They also discussed opportunities over the signed MoU on Cooperation for establishing a Bhutanese Special Economic Zone in Kurigram.

    The foreign secretary said that Bhutan has a special place in the hearts of the people of Bangladesh, as it was the first country to recognize Bangladesh.

    Over the years, he said: “The relations deepened in depth and dimensions expanding areas of cooperation in trade and commerce, power, education, cultural exchange, and people-to-people contacts.”

    However, Jashim said: “There remains immense potential to further enhance cooperation between the two countries.”

    The Ambassador reaffirmed Bhutan’s commitment to further strengthening ties with Bangladesh on the basis of goodwill and mutual interests.

    Both sides also agreed that Bangladesh and Bhutan have numerous opportunities to explore under the aegis of regional cooperation, especially Saarc and Bimstec.

    Later, the foreign minister hosted a farewell luncheon at the honour of the outgoing envoy.

  • Businesses in Phuentsholing struggle to rebound

    Businesses in Phuentsholing struggle to rebound

    Phuentsholing—Despite an uptick in the number of Indian tourists visiting Phuentsholing, local businesses in the country’s commercial hub are struggling to bounce back from the pandemic’s impact.

    In a clear sign that Phuentsholing’s economy is still struggling to recover, hotels and other businesses report low customer footfall even during traditionally busy seasons.

    This is despite the government waiving Sustainable Development Fee (SDF) for casual  foreign visitors staying up to 24 hours in the border towns of Phuentsholing, Samtse, Gelephu, and Samdrupjongkhar.

    Many business owners in Phuentsholing say this policy intervention has had minimal impact on their revenue.

    Hotel operators point to rising operational costs, including high rent and inflation, as major challenges. Bhutanese businesses also face stiff competition from neighbouring Jaigaon town, where lower costs give Indian establishments a competitive edge.

    “Our employees are free without much work even during the peak seasons. Even locals do not visit like before,” said one hotelier operating in the lower market area.

    Another concern among budget hotel owners is the rise of discounted travel packages offered by overseas agents and certain star-rated hotels in Phuentsholing.

    They believe these discounts divert cross-border tourists away from budget accommodations.

    “When star-rated hotels offer discounts, cross-border tourists who would normally choose budget hotels obviously go for the standard ones,” said a budget hotel owner.

    Meanwhile, a manager at a star-rated hotel defended saying discount offers during lean periods is a survival strategy.

    “We don’t have much to say about how travel agents sell their packages if we are not affected, but collaboration between hoteliers and agents could lead to some other challenges,” added another hotelier.

    The effects of the pandemic have forced some hoteliers to scale down their operations.

    One hotel owner, who previously managed three establishments, now operates only two and continues to face challenges in paying employees on time.

    “I usually adjust their pay before the 10th of the month to ensure the necessary rolling,” the owner said.

    Others have resorted to using alternative income to pay their staff during lean periods.

    Retail shops and restaurants are faring no better.

    A woman who previously ran a restaurant was forced to close it due to a lack of customers. She later opened a liquor shop, but that venture also struggled.

    Business owners blame higher taxes for driving up the cost of goods and services, making them less competitive compared to those in Jaigaon. “When taxes are high, it is only natural that we pass the cost onto customers,” a shopkeeper explained.

    Rising rents further compound the problem, with rental prices increasing regardless of business performance.

    Business owners attribute much of their struggles to higher taxes imposed by the government, which make goods and services in Bhutan more expensive than in Jaigaon.

    Some business owners are contemplating converting hotel rooms into residential spaces to reduce losses.

    Some argue that the lack of recreational facilities and other attractions within the prescribed boundary for day visitors limits visitor spending in Phuentsholing.

    Strict regulatory controls at entry points are another barrier. Visitors who overstay the permitted 24-hour period face fines, discouraging repeat visits.

    “Those entering for short-term durations are imposed fines when they get late at the exit point, which discourages them from visiting again,” said a local businessman.

    With such challenges within Bhutan, consumer preferences have also shifted, with many Bhutanese choosing to shop or live in Jaigaon for convenience and lower costs.

    “Many Bhutanese customers choose to reside in India for shopping convenience since frequent exit and entry at the gate is time-consuming,” said a local resident.

    Several business owners are calling for a comprehensive recovery plan to revitalise border towns and attract tourists. Recommendations include enhancing recreational facilities and improving infrastructure to encourage longer stays and increased spending.

    “The lack of a targeted recovery plan is holding businesses back,” a private-sector employee said. “Tourists used to stay for weeks before the pandemic. Now, even those visiting for 24 hours spend little because prices in Bhutan are higher than across the border.”