The dzongkhag is characterized by highly dissected mountain ranges, steep slopes and narrow valleys with little flat land.

The potential for the development of horticulture crops like cardamom, ginger and oranges exist in some gewogs like Khar, Dungme and Chongshing Borang but is constrained by the lack of access to roads and markets.

Other problems faced by most farmers include the lack of water sources for irrigation and extensive wildlife crop depredation.

Inadequate power supply, limited road accessibility and market outlets constitute major challenges to development in the dzongkhag.

Off-farm employment in gypsum mines; roads and other construction works constitute an important source of income for the people.

The production of cultural and religious items such as jalings, dhungs, Thonphupoe, ngazhing jurmo tea leaves, and Yurung bura (textile) also generate cash income.

The commissioning of Kurichu Power Project and the provision of adequate electricity supply can go a long way in accelerating economic and social development activities in the dzongkhag.

[3] In February 2011, some 42 households in remote areas of Pemagatshel were slated for relocation closer to population centers in order to provide better access to resources, both natural and governmental.