The Ministry of Trade and Industries (MTI) is one of the largest ministries with responsibilities covering trade, industries, geology, mines, power and tourism. The MTI deals with various public and joint sector corporations and also interacts very closely with the private sector in general and the Bhutan Chamber of Commerce and Industries (BCCI) in particular on various issues relating to the promotion of the private sector development.

Structure

The services provided by the MTI are delivered through five operational divisions for Trade, Industries, Power, Tourism. Geology land Mines. The MTI secretariat consists of the Policy and Planning Division (PPD), the Legal Unit and the Administration and Finance Division (AFD) whose functions and responsibilities cut across the work of the other divisions. There are also four Regional Trade and Industry Offices (RTIOS) in Thimpu, Phuntsholing, Gelephu and Samdrup Jongkhar which function under the purview of this Ministry.

Policy and Planning Division

The PPD serves as a coordinating office for the MTI's programmes and projects and represents a link with the Planning Ministry in the formulation, review and monitoring of development activities under the MTI.

The legal section

The Legal Unit deals with a range of issues requiring legal opinion and legislation including the administration of the Companies Act. The Unit as the Registry of Companies has been working to streamline procedures relating to administration of the Companies Act in building up data base on Bhutanese companies. The Unit has also started the preparation of the Industrial Property Law and Copyright Law which will continue in the 8FYP.

The Administration and Finance Division

The AFD has two sections - Administration and Finance. With the merger of administrative and financial functions of erstwhile departments (now divisions), the work of AFD has increased considerably. AFD is responsible for provision of all administrative, financial and supporting services to various Division in MTI.

Regional trade and industry offices

With the decentralization policy, the RTIOs work more closely with the Dzongkhag authorities in their respective jurisdictions for promotion and implementation of trade and industrial projects and programmes besides their regular licensing works even through the trade and industrial activities were not decentralized to the dzongkhags. The RTIOs are also entrusted with work of consumer protection as well as implementation of Maximum Retail Price (MRP) in their region. To bring the trade and industrial activities closer to the people, the MTI will set up two more regional offices in Trongsa and Trashigang during the 8FYP.

Objectives and strategies of 8 FYP

• Create of a conducive policy and legal frame work for promoting trade and industrial development;
• Promote efficiency and effectiveness in the delivery of programmes and services;
• Improve coordination among the organizations within MTI as well as with relevant organizations outside MTI;
• Provide required support facilities with a view to improving work efficiency, and
• Emphasize on training of existing officers and staff and employment of additional persons as required.

Programmes for the 8FYP

The programmes for the MTI secretariat are geared towards strengthening of the Administration and Financial services, and creation of an appropriate policy and legal framework for the development of trade and industries in the country.

Strengthening of Administration and Finance Division in the MTI

A project for strengthening the administration system and procedures of the AFD will be implemented during the 8FYP. The project will be aimed at enhancing the delivery of administrative and financial services through manpower training and computerization of budgeting and accounting system.

During the last three and half decades commercial activity has grown rapidly. Exports to India increased significantly while exports to third countries, especially Bangladesh, also grew. During the 7FYP, the domestic trading sector developed reasonably well land 5,793 trade licenses were operational in the country by the end of 1995. During this period two important programmes affecting the sector were instituted, namely the demonopolization exercise and the decentralization of the export trade.

Constraints

The main constraints are the high costs of transport resulting from Bhutan's landlocked position, the difficult terrain, and limited transport infrastructure especially affecting the export trade. But high transport costs, inadequate infrastructure and services also affect internal trade. The lack of entrepreneurial skill, and of experience in accounts, quality control and related issues, have in the past been met in part by the employment of expatriates, but government policy to encourage employment of national labour force means that a commensurate effort is being made to train and employ more nationals.

Institutions

The Trade Division, under the ministry of Trade and Industry consists of two sections, one for internal and one for external trade, the latter looking after both exports and imports. There are four Regional Trade and Industry Offices located at Thimphu, Phuntsholing, Gelephu and Samdrup Jongkhar. A trade Promotion Centre and Consumer Protection Units are also being developed. The Division works closely with the Bhutan Chamber of Commerce and Industry (BCCI).

Indicators

Trade Policy

Trade Detail