Paro Festival: Most popular festival in Bhutan

Under a warm spring sun, and dressed in their finest ghos and kiras, Parops, pilgrims, and an almost equal number of tourists, celebrated the first day of Paro tsechu, Nangcham, witnessing sacred dances performed in the cobble-stoned courtyard of the Rinpung dzong.

Events inside Rinpung dzong commenced with monks performing Shingje Yab Yum, the dance of the lord of death (Shingje) and his consort.

This was followed by Durdag, the dance of the lords of the cremation grounds, Shanag, dance of the black hats, Drametse Ngacham, dance of the drum from Drametse, De Gye Mang cham, dance of the eight kinds of spirits, and finally Chhoeshey, a religious song.

Intermingled within these sacred dances, were also zhungdra and boedra dances performed by the dzongkhag’s dancers.

Kuensel spoke to a few tourists, who witnessed the festival. All of them pointed out that the festival was uniquely different from similar festivals in other countries, in that it was not staged for tourists, but conducted for the local people.

“It wasn’t for travellers but for the people,” said Peter Hollingworth, a doctor from England, who witnessed the celebrations for the first time. “It was very natural, genuine.”

“People joked, laughed and interacted, it brought people together and it was very beautiful,” said Australian Peter Davissen, an electrician.

“You could feel the joy and fun, the happiness, and the peaceful atmosphere of the community,” said Christian Gruber, a German IT project manager with Shell.

“I feel privileged to have been able to attend such a magnificent festival,” said Felipe Chirinos from Peru. Paro tsechu continues for another four days.

Source: Kuenselonline

is Majesty the King graced the final day of the Talo Tsechu in Punakha, Bhutan

His Majesty the King graced the final day of the Talo Tsechu in Punakha this morning. His Majesty joined thousands of people from in and around Punakha and neighbouring Dzongkhags. His Majesty also granted audience to the Kidu beneficiaries.

The three-day Tsechu ended with the unfurling of Zhabdrung Phunsum Tshogpai Thongdrel.

His Majesty witnessed the mask dances and offered prayers and butter lamps.

His Majesty the King also interacted with the people who had gathered to witness the Tsechu.

Source: BBS

His Majesty the King granted an audience to the gups of Nation (Bhutan)

His Majesty the King granted an audience to the gups at the Lingkana Palace today

Profits dip by Nu 44 million: Bhutan National Bank

Foreign exchange movement, not performance, led to a slump in Bhutan National bank’s profits, the first time in eight years, say bank officials.

“If you exclude the foreign exchange (forex) component for 2008 and 2009, we’ve actually grown by more than 23 percent,” said BNB’s chief executive officer, Kipchu Tshering.

In 2008, the bank had a windfall of Nu 84 mn through forex and last year it suffered a loss of Nu 19 mn. BNB, like most banks, is required to maintain at least USD 10 mn in foreign exchange to facilitate third country transactions.

According to the bank’s profit and loss account, which was not obtained from bank officials, BNB’s profits fell by about Nu 44 mn in 2009, with profit after tax slipping to Nu 266.2 mn from Nu 310.3 mn in 2008.

While income from interest on loans grew to Nu 1.14 bn from Nu 917 mn, interest paid on fixed deposits shot up to Nu 588.9 mn from Nu 329 mn in 2008.

The bank’s management said that the raise in corporate fixed deposit rates last year to attract more funds had increased the cost of funds. “Our lending was growing but not our deposits, so we raised the fixed deposit rates to avoid a cash crunch,” said Kipchu Tshering.

While this increased deposits to Nu 21.65 bn from Nu 14.60 bn and loans also grew to Nu 11 bn, shareholders pointed out, during the bank’s annual general meeting in Thimphu on March 23, that the huge interest payments on fixed deposits had significantly eaten into the profits.

“The bank has made money, but it could have made much more had it not taken so much deposits,” said a shareholder. “It’s a lapse on the management for not being able to track investment as well as fund flow.”

The bank did the same in 2002 and its profits fell for the first time after it was formed in 1997, said another shareholder. “It’s a repeat of 2002, they took in just too much money.” He also said that the bank could be stuck with paying high interest rates for some time, particularly for long term fixed deposits.

For the Bank of Bhutan, the cost of funds were much cheaper, because most government agencies, for whatever reasons, had their current accounts with them, on which the bank incurred no cost but charged for services rendered.

BNB today has an excess liquidity of about Nu 4 bn, but its officials expect large borrowers only after some hydropower projects are completed. “Domestic power consumption has reached its peak and no new industries can come up without power,” said Kipchu Tshering. There was no land either to set up new industries, although the government has made announcements to develop several industrial estates.

Kipchu Tshering said that there were no investment avenues within the country to utilise the surplus money. “Elsewhere, you have mutual funds, the stock market and government bonds. Here even the issue of government bonds isn’t consistent.”

The bank is waiting to invest several hundred million ngultrums as consortium financing to the Dungsam cement project, which announced earlier this year that it would borrow about Nu 2 bn domestically.

Despite the drip in profits, the bank declared a dividend of Nu 28.50 a share, the same as the previous year. It will paying Nu 101 mn as dividend, Nu 79 mn will go into reserves. As in 2008, Nu 50 mn has been set aside as reserve to build an office complex.

Source: Kuenselonline

GNH philosophy into the country’s economic policies

Much has been done to beef up the country’s economy, just as much has been said about the need to protect its environment that is underpinned by the gross national happiness (GNH) philosophy.

Lyonchhoen Jigmi Y Thinley said the government would incorporate the GNH philosophy into the country’s economic policies to promote a ‘green and sustainable economy’.

“We’ll give incentives, tax relief and bonuses to economic activities, promoting a green and sustainable economy with value addition and minimum impact on environment and culture,” the prime minister said.

He said this was already incorporated in the government’s final economic development policy (EDP) document, which will be made public next week.

Source: Kuenselonline

Anything leading to the depletion of resources with minimum benefit to the country, he said, would be discouraged. He explained that exploiting and exporting raw minerals, for instance, would not receive priority. He assured that, rather than terminating the existing industries, they would be encouraged to add value to their products.

“We’ll go for economic activities that ensure highest return, while also ensuring the intergeneration equity in the sharing of natural resources,” the Lyonchhoen said.

Sources said the FDI policy was delayed on the advice of the cabinet to incorporate the philosophy of GNH into the document.

Lyonchhoen said the government would encourage FDI in activities that made Bhutan a regional services hub in health and wellness, education centre, tourism, financial services, data centres and ICT.

He said Bhutan was promoting hydropower, both inside and outside the bilateral framework, and the pursuit of renewable energy sources.

An important component of GNH in economic development, he pointed out, was also the promotion of Bhutan as an organic farming country, which would immensely benefit farmers exporting their products abroad.

The prime minister admitted that, although some of his colleagues in the cabinet, like Lyonpo Khandu Wangchuk and Lyonpo Yeshey Zimba favoured accession to WTO, he delayed the process.

He said they were still unclear to questions like how WTO could reconcile with Bhutan’s pursuit of GNH, its impact on Bhutan’s economy and, unlike EDP based on GNH, accession to WTO would mean indiscriminately opening up all barriers to external services and goods.

Bhutan could join WTO any time it wanted, but to withdraw would be difficult and a traumatic process, he said.

On bridging the divide between the big economic policies, GNH and the everyday needs of the people, Lyonchhoen said GNH was also about equitable development and empowerment through not just the ballot but also economic and social empowerment.

He said to achieve that equity and empowerment, the government was focusing on providing essential services like roads, water, electricity, and telecommunications among others.

Lyonchhoen explained that to promote equitable development, the government would provide incentives to businesses that opened in remote areas or those other than established places like Thimphu and Phuentsholing.

He also said the country saw an influx of imported junk food, which most developed nations refused to accept because of their contents.

Products such as carbonated drinks and other juices, which were harmful to people’s health and lead to environmental pollution, he said, would be taxed heavily.

“Some of the main elements of the economic policy will be creating an environment where the population grows as healthy, intelligent and educated people, who will have the capacity to turn into meaningful instruments the power of the ballot,” the prime minister said.

Giving the international context, the prime minister said the present macro economic policies was leading to crises similar to the global financial crisis, pollution and great disparities in wealth. Therefore, he said, Bhutan would have to pursue a different path of GNH that could also be the world’s saviour.

With all the economic activities and growth the country was experiencing, Bhutan, the prime minister said, would be an economically self-reliant country by 2020, no longer dependent on foreign grants.