'Bhutan to come out with economic development policy'

The DPT government in Bhutan will soon come out with an economic development policy that would identify the country's unique selling points and investment areas.  

Prime Minister Jigme Thinley said upcoming hydropower projects, promotion of Bhutan as an educational, ICT and tourism hub would be some of the steps in that regard.  

Thinley presented the first annual report 2008-09 of his government, citing some of its achievements which included an economic growth of 8.1 per cent.  

He said as of April, Bhutan's foreign reserves have increased to about $663 million, which was sufficient to fund 17 months of imports against the requirement of 12 months. Inflation, which was 9.21 per cent last year, declined to 7.21 per cent in the first quarter.  

According to him, the most significant impact of the global financial crisis on Bhutan was on tourism, which saw a decline of 31.5 per cent of tourist arrivals in the first quarter. "However, no donors had withdrawn support," he said.  

For the 10th plan, India would be providing an additional Nu 227.9 billion, of which Nu 214.9 billion would be for hydropower, he said.  

Thinley also hailed visits of Prime Minister Manmohan Singh, President Pratibha Patil, Foreign Minister S M Krishna and Congress president Sonia Gandhi among others saying their tours have further strengthened ties with India.