The World Bank has approved USD 25 million in financing for the Royal Government of Bhutan to strengthen policies aimed at creating jobs and boosting economic resilience under the First Growth and Jobs Development Policy Financing operation. The program targets a stronger policy and institutional framework for private sector-led job creation, alongside reforms to fiscal and debt management and systems to protect workers. The financing supports measures to improve the business environment and access to finance, including amendments to external commercial borrowing guidelines to enable Bhutanese market participants to access external funding, expand credit to businesses, and support firm entry and expansion. It also backs reforms to modernize the tax system, strengthen debt management and public investment management, improve the foreign direct investment framework, and advance agriculture reforms focused on farmer cooperatives, targeting of subsidies, and efficiency of agricultural state-owned enterprises, alongside steps to improve pension sustainability and working conditions for women, youth, and vulnerable groups. This operation is the first in a series of three. Of the USD 25 million, USD 12.5 million is provided as a grant and USD 12.5 million as concessional financing with a 40-year repayment term and a 10-year grace period.

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