𝐄𝐃𝐈𝐓𝐎𝐑𝐈𝐀𝐋- 𝐄𝐒𝐏’𝐬 𝐏𝐫𝐨𝐦𝐢𝐬𝐞 𝐨𝐟 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲 𝐇𝐢𝐧𝐝𝐞𝐫𝐞𝐝 𝐛𝐲 𝐁𝐮𝐫𝐞𝐚𝐮𝐜𝐫𝐚𝐭𝐢𝐜 𝐇𝐮𝐫𝐝𝐥𝐞𝐬 𝐚𝐧𝐝 𝐃𝐞𝐥𝐚𝐲𝐬

The Economic Stimulus Program (ESP) worth Nu 15 Billion, introduced for post-pandemic economic recovery, was heralded as a lifeline for domestic production, employment generation, and bolstering foreign currency reserves. However, while its objectives are laudable, its execution has laid bare systemic inefficiencies that hinder its transformative potential, particularly for the private sector.

One of the most significant hurdles facing businesses is the bureaucratic complexity embedded in the ESP’s implementation. Small and medium enterprises (SMEs), already struggling to recover from pandemic-induced disruptions, are finding it difficult to access the program’s benefits. The high upfront costs, ranging from Nu 300,000 to Nu 400,000, serve as a financial barrier, especially when there is no guarantee of loan approval. For businesses operating on tight margins, these expenses compound their financial vulnerabilities and deepen disillusionment with the program.

The transition to centralizing the loan process under Bhutan Development Bank Limited (BDBL) was intended to simplify procedures. However, businesses that initially applied through other financial institutions were required to restart the application process entirely, as their documentation was deemed non-transferable. This lack of cohesion not only delays fund disbursement but also undermines trust in the program’s ability to meet its objectives efficiently.

The statistics further highlights these inefficiencies. Of the Nu 398.22 million allocated to 262 approved projects, the approval process often exceeds a month, creating significant delays for grassroots entrepreneurs who lack the resources to endure prolonged waiting periods. Disparities in disbursement timelines across Dzongkhags exacerbate regional inequalities, further sidelining businesses in less-resourced areas.

Stakeholders, including the Bhutan Chamber of Commerce and Industry (BCCI), have raised pressing concerns over these systemic issues. They have called for streamlined application processes and the introduction of blended funding schemes to ensure equitable access. Notably, the exclusion of private sector representatives from the ESP Committee has drawn criticism, as their insights could bridge the gap between policy intent and on-the-ground realities.

The second phase of the ESP has encountered similar challenges. Procedural inefficiencies and delays have plagued its rollout, limiting approvals and eroding confidence among potential beneficiaries. Without decisive reforms, the program risks failing to deliver on its promise of revitalizing Bhutan’s economy.

To address these challenges, the government must prioritize reforms that streamline the ESP’s operations. Documentation redundancies should be eliminated, and uniformity in disbursement policies must be enforced. Furthermore, incorporating private sector representatives into decision-making processes will provide valuable perspectives and foster greater trust in the program.

Time is of the essence. As the first phase concludes, concerns over data transparency and inefficiency must be addressed urgently. A reimagined ESP, characterized by inclusivity and efficiency, is crucial not only for restoring confidence in the private sector but also for achieving sustainable economic recovery. By taking decisive action, the government can transform the ESP from a source of frustration into a powerful catalyst for post-pandemic resilience and growth in Bhutan.