President Thongloun Sisoulith.

President instructs govt to address high inflation, weak kip, rising costs

The head of state has instructed the government to ensure that steps are taken to rein in the high inflation rate and halt the continuing fall in the value of the kip, saying that effective changes must be made within one month.
The Secretary General of the Lao People’s Revolutionary Party Central Committee, and President of Laos, Thongloun Sisoulith issued the order on the first day of a meeting of the government cabinet, provincial governors and the Mayor of Vientiane, which is taking place from July 15-17.
The President said the rate of inflation must be lowered, along with the spiralling cost of consumer goods, to ensure that the cost of living is within the means of people from all walks of life, including general workers, government officials, soldiers, the police, teachers and doctors.
The government must put in place conditions that will sustain an acceptable rate of inflation and living costs so as to resolve the country’s ongoing financial problems and ease the burden on ordinary people, he added.
In addition, he advised the government to bolster foreign currency reserves by ensuring that more foreign currency earned from investment and exports flows into the banking system, to enable sufficient reserves for the import of essential goods.
The President also said that less foreign currency should be spent on non-essential imports, and advised the government to build up gold reserves.
These are essential steps in guaranteeing economic stability, the most important of which is to reduce the use of foreign currency and prevent currency exchange outside of the banking system, he added.
He also instructed the government to urgently tackle corruption and to investigate individuals who take advantage of loopholes such as re-selling development projects and pilfering the country’s natural resources.
The President also stressed the need to collect debts owed and to auction off the assets confiscated from criminals, as well as take possession of properties owned by people engaged in illicit activities, following their conviction by the courts.
He called on meeting participants to make radical changes in order to resolve the country’s dire economic and financial situation and to ensure stability through better management.
President Thongloun praised the government for achieving certain elements of the socio-economic goals set for the first six months of 2024, noting that success had been achieved in relation to productivity, the processing industry, and services, which showed a continuous growth trend.
Revenue collection had also increased, he observed, although enormous debts still remain to be paid.
Additional funds must be sought from a wide variety of sources so the government can make debt payments on time as scheduled, while monetary policy must be directed at stimulating the economy and controlling currency exchange rates.
On a positive note, the President said more foreign currency earned from exports is entering the banking system and that gross domestic product (GDP) currently stands at 4.7 percent, indicating healthy economic growth.

By Times Reporters
 (Latest Update July 16, 2024)