MoICE Achieves 98.5% Target in FY 2025-26

Strong Performance Across Bhutan's Economic Ministry 💼

Bhutan's Ministry of Industry, Commerce and Employment (MoICE) has demonstrated exceptional institutional performance, successfully achieving 66 out of 67 departmental performance targets during the 2025-2026 financial year. This remarkable accomplishment reflects the ministry's strategic focus on economic diversification, employment generation, and sustainable business development across the nation.

The 98.5 percent achievement rate underscores the ministry's commitment to fulfilling its mandate during a period when global economic uncertainties continue to challenge developing economies. This level of performance consistency positions Bhutan favorably in regional economic competitiveness and demonstrates the effectiveness of the government's economic policy framework.

Departmental Excellence: A Closer Look at Performance 🎯

Five of the ministry's six departments achieved a perfect 100 percent performance rating, showcasing institutional excellence across multiple economic sectors. The Departments of Industry, Trade, Tourism, Employment and Entrepreneurship, and Labour each delivered on all their key performance indicators, reflecting strong organizational capacity and effective resource management.

The Department of Media, Creative Industry and Intellectual Property (DoMCIIP) was the sole exception, achieving 85.7 percent of its targets. While this represents solid performance, the department faced challenges in one critical area: intellectual property service revenue generation fell short of expectations, generating only Nu 12.8 million against a target of Nu 25 million.

Industrial Expansion Exceeds Expectations 🏭

The Department of Industry delivered particularly impressive results, establishing 5,285 industries and cottage and small industries (CSIs)—far exceeding the target of 2,000 units. This represents a 164 percent achievement rate, demonstrating robust entrepreneurial activity and small business formation across the kingdom.

Beyond business establishment, the department successfully upscaled 33 industries against a target of 30, while supporting 22 CSIs to participate in trade fairs and exhibitions, surpassing the target of 15 participants. These metrics indicate growing market confidence and expanding opportunities for Bhutanese businesses in regional and international markets.

Foreign direct investment (FDI) approvals, excluding hydropower projects, reached Nu 4.23 billion, significantly exceeding the Nu 3.5 billion target. Additionally, two major hydropower projects valued at Nu 162.53 billion were approved, reinforcing Bhutan's position as a clean energy exporter and attracting substantial international capital investment.

Infrastructure Development: Norbugang Industrial Park Progress ⚙️

The Norbugang Industrial Park development and expansion initiative reached 96.3 percent completion, positioning this strategic industrial hub for imminent operational readiness. The park represents a cornerstone of Bhutan's industrialization strategy, designed to attract manufacturing enterprises and create employment opportunities in the Thimphu region.

The department also completed a comprehensive assessment to identify underperforming or "sick" industries, laying groundwork for potential revival initiatives and strategic interventions to support struggling businesses through technical assistance and market development support.

Tourism Sector Surge: Record-Breaking Performance 🌍

Tourism emerged as a standout performer, with the Department of Tourism recording 258,232 international tourist arrivals against a target of 223,420—representing a 115.6 percent achievement rate. This significant growth reflects the effectiveness of Bhutan's high-value, low-impact tourism strategy and increasing global interest in the nation's unique cultural and natural attractions.

More impressively, direct tourism revenue reached Nu 4.82 billion, substantially exceeding the Nu 3.2 billion target. This 150.6 percent achievement demonstrates the strong spending capacity of visitors and the effective monetization of Bhutan's tourism offerings, from luxury accommodations to experiential cultural programs.

The department completed nine tourism amenities and infrastructure projects against a target of five, including renovations of heritage sites, development of trekking facilities, and enhancement of visitor accommodation standards. Four regulatory reforms were implemented, streamlining tourism business operations and improving the investment climate for hospitality enterprises.

Tourism-related employment opportunities reached 2,458 positions, surpassing the 2,000-job target and providing meaningful livelihood options across hotels, restaurants, travel agencies, and cultural enterprises throughout the country.

Trade Facilitation and Brand Development 📊

The Department of Trade achieved 100 percent of its key performance indicators through strategic trade promotion and administrative efficiency. The certification of Brand Bhutan products reached 61 units against a target of 22, demonstrating strong market recognition and quality assurance for Bhutanese manufactured goods.

Trade fairs and National Trade Facilitation Committee activities totaled 29 engagements against a target of 16, creating multiple platforms for domestic enterprises to connect with regional and international buyers. The department issued 7,354 import licenses within the standard turnaround time of one to two working days, maintaining administrative efficiency while supporting business operations.

Additionally, 4,809 trade and e-commerce-related licenses were issued within five working days, facilitating the growing digital commerce sector and supporting entrepreneurs entering online retail and cross-border e-commerce activities.

Employment and Entrepreneurship: Job Creation Focus 💼

The Department of Employment and Entrepreneurship provided equipment and business development support to 39 start-ups and entrepreneurs, exceeding the target of 31. This 126 percent achievement rate reflects the ministry's commitment to fostering entrepreneurial ecosystems and reducing unemployment through self-employment initiatives.

Job placements reached 5,491 against a target of 5,750. Although numerically below target, the department's KPI was considered achieved due to external factors—specifically, the conflict in the Middle East, which significantly disrupted overseas employment placements for Bhutanese workers. This contextual achievement demonstrates realistic performance measurement that accounts for geopolitical circumstances beyond institutional control.

Three Employment Service Centres in Trashigang, Thimphu, and Bumthang were enhanced during the year, improving job matching services and career counseling infrastructure across the nation. These regional facilities serve as critical touchpoints for job seekers and employers, facilitating labor market matching and reducing structural unemployment.

Labour Standards and Compliance Excellence 📋

The Department of Labour achieved full target attainment through rigorous enforcement of labor standards and dispute resolution mechanisms. Compliance with the Labour and Employment Act reached 89.5 percent against a target of 70 percent, representing a 127.9 percent achievement rate and indicating strengthened workplace standards across Bhutanese enterprises.

The department registered 139 occupational health and safety committees against a target of 30, promoting workplace safety culture and employee welfare across industries. Support for workers engaging in different economic sectors reached 218 individuals, facilitating skills development and sectoral transitions.

Labour dispute resolution maintained exceptional efficiency, with 178 disputes resolved within the stipulated 21-working-day turnaround time, ensuring industrial peace and protecting worker rights while maintaining business continuity.

Creative Industries and Geographic Indication Success 🎨

Despite the overall departmental shortfall in intellectual property revenue, the creative and craft sectors demonstrated remarkable export performance. Creative industry exports generated USD 202,033 against a target of USD 200,000, while craft exports reached USD 519,441 against a target of USD 500,000—both exceeding expectations.

Creative industry employment reached 1,703 positions against a target of 1,600, indicating the sector's growing contribution to national employment and cultural preservation. Four products—Bumthang Yathra, Bumthang Honey, Dhur-Tadingang Gontho, and Merak-Sakteng Zoetey—received geographical indication protection, providing legal safeguards for traditional Bhutanese products and supporting artisan communities through intellectual property frameworks.

Institutional Performance Across All Levels 🏛️

Beyond departmental metrics, the ministry's broader institutional performance demonstrated remarkable consistency. Across six departments, four agencies, and six Regional Offices of Industry, Commerce and Employment, the ministry managed 193 key performance indicators, achieving 192 of them for an overall institutional achievement rate of 99 to 99.5 percent.

The four supporting agencies achieved a perfect 100 percent of their 20 key performance indicators, while the six Regional Offices achieved all 106 regional KPIs, demonstrating strong decentralization effectiveness and consistent performance standards across Bhutan's geographic regions.

Strategic Implications for Bhutan's Economic Future 🚀

The MoICE's exceptional performance reflects the ministry's strategic alignment with national development priorities outlined in Bhutan's Five-Year Plans. The strong showing across industrial development, tourism, trade, employment, and labor standards indicates comprehensive progress toward economic self-reliance and sustainable development goals.

The ministry's success in exceeding targets across most departments suggests effective policy implementation, adequate resource allocation, and strong institutional capacity. However, the intellectual property revenue shortfall highlights the need for enhanced IP commercialization strategies and increased awareness among businesses regarding intellectual property protection benefits.

Looking forward, sustaining this performance trajectory will require continued focus on emerging economic sectors, particularly digital commerce and creative industries, while maintaining rigorous labor standards and employment quality assurance.

Key Takeaways and Future Outlook 📈

The Ministry of Industry, Commerce and Employment's achievement of 98.5 percent target attainment demonstrates institutional excellence and effective governance in Bhutan's economic development. Five departments achieved perfect performance ratings, while only one KPI across 67 departmental indicators remained unmet.

This strong performance provides a solid foundation for addressing emerging economic challenges, including digital transformation, climate-resilient industries, and inclusive employment opportunities. As Bhutan continues navigating global economic uncertainties, the ministry's demonstrated capacity for target achievement and adaptive management positions the nation favorably for sustained economic growth and employment generation in the coming years.