Thimphu is the capital and largest city of Bhutan. It is situated in the western central part of Bhutan and the surrounding valley is one of Bhutan’s dzongkhags, the Thimphu District. The city became the capital of Bhutan in 1961. As of 2005 it had a population of 79,185, with 98,676 people living in the entire Thimphu district. Thimphu, as the political and economic centre of Bhutan, has a dominant agricultural and livestock base, which contributes to 45% of the country’s GNP. Tourism, though a contributor to the economy, is strictly regulated, maintaining a balance between the traditional and development and modernization. Thimphu contains most of the important political buildings in Bhutan, including the National Assembly of the newly formed parliamentary democracy and Dechencholing Palace, the official residence of the King, located to the north of the city. As a metropolis and capital city, Thimphu is coordinated by the “Thimphu Structure Plan”, an Urban Development Plan which evolved in 1998 with the objective of protecting the fragile ecology of the valley. This development is ongoing with financial assistance from the World Bank and Asian Development Bank.