NREC Consults with DoFPS and DGM
On April 9, 2025, the Natural Resources and
Environment Committee (NREC) convened its first stakeholder meeting with
officials from the Department of Forest and Park Services (DoFPS) and the
Department of Geology and Mines (DGM) to discuss on the forestry sector's
contribution to Gross Domestic Product (GDP).
The Chairperson of the NREC, Hon’ble Kelzang Lhundup, acknowledged the diligent efforts of both departments but noted that despite Bhutan’s rich forest cover exceeding 60 percent the sector’s contribution to the national GDP remains insignificant. He emphasized that the committee has been tasked with reviewing this matter and identifying strategies to enhance resource utilization.
The meeting aimed to address existing challenges and explore sustainable approaches to improving GDP contribution through better use of forest and mineral resources. Discussions highlighted policy limitations, lack of standardized timber extraction guidelines, and ambiguity in GDP classification, where forestry-related activities are often recorded under other sectors.
Participants also raised concerns over export restrictions, delayed GDP data publication, limited inter-agency collaboration, and regulatory bottlenecks. The underperformance of the mining sector in achieving the 13th Five Year Plan targets was also discussed, with calls for improved data accessibility, revised royalty structures, and streamlined clearance processes.
The NREC will continue its consultations with relevant stakeholders, and the comprehensive findings will be presented during the upcoming summer session.
