Bhutan Economic Transformation: In the State of the Nation report, the Prime Minister said Bhutan’s GDP has grown 30% since July 2024, with hydropower capacity rising to 3,576 MW, and outlined a 2026-27 push via eight national priority programmes—FDI push (Nu 3.5bn), new startups, and plans to set up 100 new industries outside Thimphu/Chhukha, plus tourism packages and export targets for gypsum, dolomite and construction materials. Energy & Infrastructure: The same report highlighted connectivity upgrades (new highways, bridges, dry ports) and continued hydropower build-out, including resumed work on major projects and new small hydropower development. Cost of Borrowing: Bhutan’s Finance Ministry directed the RMA and banks to review the lending rate framework (including MLR and expected credit loss rules) to see if borrowing costs can be reduced without harming financial stability. Public Works Capacity Gap: Parliament’s PAC flagged recurring irregularities in engineering and procurement, pointing to a shortage of experienced technical staff and weak supervision in infrastructure projects. Transport Enforcement: BCTA cancelled permits of 25 taxi operators for violating transport directives around Kathrid empowerment at Kuenselphodrang. Tourism Deal-Making: BITM 2026 in Thimphu signalled a shift to structured international partnerships, bringing in overseas buyers to support Bhutan’s “high value, low volume” model. Agri-Food & Trade: Bhutan and Singapore moved to deepen agri-food ties with the opening of the first Mini Bhutan Market in Singapore. Water & Farm Protection: Safe water filtration expanded to 85% of schools, while chain-link fencing funded under India’s PTA is underway in Samdrup Jongkhar to cut wildlife crop damage. Climate Risk Watch: ICIMOD warned that even with below-normal monsoon forecasts for the HKH region (including Bhutan), flash floods, landslides and drought-flood swings remain a serious risk.