The Asian Development Bank (ADB) has approved $17.42 million to help Bhutan protect vulnerable families from rising food and fuel prices caused by the Middle East conflict.
The funding will support Bhutan’s $267.88 million Anti-Crisis Action Plan. It includes a $13.45 million grant and a $3.97 million loan.
The program will provide financial assistance to women in eligible large families, subsidize rural household energy bills, and expand school meal programs. It will also reduce taxes on essential goods such as rice, butter, cooking oil, and salt to help keep prices affordable.
In addition, the initiative will support small-scale public works, strengthen fuel storage, and promote electric transport through the procurement of 45 electric buses.
ADB expects Bhutan’s economic growth to slow from 8.5% in 2025 to 6.5% in 2026 before recovering to 7.2% in 2027.
The funding aims to protect low-income households, maintain essential public services, and strengthen Bhutan’s economic resilience amid rising global costs.