SAARC Development Goals: Bhutan Country Report 2015

Poverty reduction has always been an important objective of Bhutan’s development policies and plans. Bhutan adopted poverty reduction as the overall objective of the 10th Five-Year Plan (2008-2013). The commitment to reduce poverty has continued into the 11th Five Plan (11th FYP, 2013-2018).

Proportion of population living under poverty line was reduced to 12% in 2012 from 23.2 percent in 2007. About 95% percent of the poor population lived in rural areas. Among the extremely poor, 97% of them live in rural areas. Therefore, poverty in Bhutan continues to be a rural phenomenon.