The NREC held stakeholder meetings across six dzongkhags to evaluate the forest sector’s contribution to the country’s GDP. Bhutan’s forestry sector underperforms GDP, with market constraints, outdated royalty structures, and environmental degradation causing concern. Wangdue Phodrang Dzongkhag faces water source drying, deforestation, and market dynamics. The NRDCL Regional Manager in Wangdue discussed forest sector initiatives, proposed interventions, and revenue generation from timber and non-wood forest products, addressing challenges like outdated royalty schedules. The NREC visited Sha Khotokha, observing thinning practices, and met with sawmill owners to discuss timber supply constraints and economic growth.
They also discussed forest operations, revenue, and wildlife trade challenges. The Regional Revenue and Customs Director highlighted challenges faced by wood-based businesses, emphasizing the need for improved sectoral strategies to address Bhutan’s trade imbalance. The forest sector’s GDP contribution analysis shows NWFPs as the top revenue source, with Pemagatshel contributing the most. However, challenges like limited market access and inadequate technical capacities persist. The region faces challenges like pest infestations and forest fires. The NREC team visited Haa, examining NRDCL depot and scientific thinning operations. Findings from six regional consultations highlight forestry sector’s potential, but structural, financial, and policy gaps need addressing.