The World Bank Group has announced a new Country Partnership Framework (CPF) for Bhutan, which will run from fiscal years 2025 to 2029. The initiative includes $300 million financing aimed at enhancing regional trade and connectivity within the nation. The CPF aligns with Bhutan’s 13th Five Year Plan, emphasizing job creation, economic growth, and safeguarding Bhutan's cultural and natural heritage. The framework seeks to facilitate private investment, improve infrastructure connectivity, and foster climate resilience to create better employment opportunities, particularly for women, youth, and disadvantaged groups.
Cecile Fruman, Acting World Bank Country Director for Bhutan, noted that “the central focus of the new CPF is helping to create more and better jobs at a time when the country is facing high levels of youth unemployment and outward migration." Fruman highlighted the CPF's role in supporting government reforms to enhance job opportunities and private investment.
Imad N. Fakhoury, Regional Director for South Asia at IFC, emphasized the importance of public-private sector collaboration for Bhutan's economic progress. "Through the CPF, the World Bank Group will focus on partnership with the Royal Government of Bhutan on critical reforms that enable and mobilize private investment," he said.
The CPF targets sectors like renewable natural resources, agribusiness, tourism, and digital industries, focusing on job creation through improved investment climates. The plan also supports health, education, and skills development. Bhutan, being the first carbon-negative country, is vulnerable to climate risks, and the framework aims to boost climate resilience and infrastructure development.
Consultations with stakeholders informed the CPF, including input from the government, private sector, and other national groups. The World Bank Group’s involvement in Bhutan has expanded significantly, aligning with Bhutan’s goal of becoming an upper-middle-income country by 2029.
Additionally, the World Bank approved $300 million for the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) Phase 2. This project aims to enhance Bhutan's regional trade infrastructure and digital connectivity, proposing improvements like the National Single Window for Trade and the construction of the Gelephu to Tareythang Road.