Green and Resilient Growth DPC-1

closed

The development objective of the First Green and Resilient Growth Development Policy Credit for Bhutan is to: (i) strengthen resilient and private sector-led growth through fiscal sustainability and enhanced access to finance and markets; and (ii) foster green growth focused on renewable natural resources. The operation - the first in a programmatic series of two development policy credits (DPCs) - supports the Royal Government of Bhutan’s efforts toward resilient and green development. It comprises two pillars: strengthening resilient and private sector-led growth through fiscal sustainability and enhanced access to finance and markets (Pillar 1); and fostering green growth focused on renewable natural resources (Pillar 2). Pillar 1 simplifies the resolution of non-performing loans in the financial sector; improves monitoring of public debt and fiscal risks from state-owned enterprises; supports e-commerce and e-payments; and improves access to international markets. Pillar 2 promotes the sustainable management of forests and foster organic agriculture to optimize the efficient utilization of Bhutan’s renewable natural resources. The reforms supported in this operation are aligned with the World Bank Group’s approach to Green, Resilient and Inclusive Development.