While maintaining its record of internal tranquility, Bhutan headed toward political reform in 2005. King Jigme Singye Wangchuk forwarded a document to every household proposing a new democratic constitution that would authorize the parliament to impeach the king and form a multiparty system with the government accountable to the legislature. Economically, the country enjoyed expanded electricity sales to India and a growth rate of 7%.
In the traditional annual rotation of prime ministers, Lyonpo Ngedup took office in September. During the year Bhutan banned foreign television channels—including Indian channels, which were considered a threat to the country’s deeply Buddhist cultural values—and smoking in public places.
Despite several rounds of ministerial-level talks, more than 100,000 Bhutanese refugees were still languishing in refugee camps in Nepal after having spent more than 15 years waiting for repatriation. In August Indian police prevented a group of Bhutanese refugees from trying to cross into India to reach their native land. During the year Bhutanese and Chinese officials discussed ways to settle an ongoing border dispute between the two countries. Meanwhile, Bhutan continued to maintain its isolation and allowed only a limited number of tourists to enter the country.
In December King Wangchuk announced that he would abdicate in 2008 and be succeeded by his son Crown Prince Dasho Jigme Khesar Namgyal Wangchuk.