How is a Rupee crisis affecting Bhutan?

As of today we do not have a balance economy. There is more import than the export leading to the rupee crises although ngultrum is pegged at par with the Indian rupee, we cannot use ngultrum in Indian market for buying goods. Bhutanese economy is too much dependent on Indian market for the goods starting from basic necessity items to the industrial raw materials. More than 50000 expatriate working in Bhutan draining out money out of Bhutan in terms of rupee.

Import of Indian vehicles has risen sharply in the recent years. Easy loans by the banks allowed everyone to buy vehicles draining huge amount of money to India in terms of Indian rupee in past. That is why for sometime vehicle import ban was put in by the previous government which is through again. Rise in the crude petroleum prices in the international market has affected Bhutan as well, as we import all petroleum products from India. Import of many construction materials with the coming up of the mega power products is draining out money from of Bhutan. Many businessmen in bordering town having accounts with Bhutanese banks drain out billions from Bhutanese coffers year after year, for which all the account holders from outside were asked by banks to close their accounts last year.

How to over these problems?

Enhance Bhutanese economy especially in growing vegetables and grains towards self sufficiency. Allow import of only those items that cannot be grown in Bhutan. Government should open ware houses /sales counters/ packing places for Bhutanese goods to put it into the market properly. Support farmers as per the need of the farming requirements like irrigation channel, seeds market, and expertise and help convert fallow land into agricultural land. Import of vehicles must be channelized properly may be one family one car policy and heavier interest on vehicle loans and subsided the agricultural loans to help enhance economy. Increase taxes on the items that are available in Bhutan if imported from outside like poultry products which we are almost become self sufficient to discourage import.

(The opinion expressed is purely that of the author)