Govt mulls measures to overcome Covid-19 crisis

The government is holding a special virtual meeting to discuss ways to better respond to the Covid-19 pandemic and overcome the economic and financial difficulties Laos is facing.
Chaired by Prime Minister Phankham Viphavanh, the open government meeting is taking place in Vientiane from July 6-8.
Cabinet members, the mayor of Vientiane, provincial governors, together with representatives of other state agencies, are attending the meeting.
Participants are reviewing the government’s battle against Covid-19 over the past six months and drawing up plans for the rest of the year.

The progress made in implementing the national socio-economic development plan over the past six months is also tabled for discussion.
Participants will also discuss the two national agendas relating to the resolution of economic and financial difficulties and drug abuse, which have hindered national development for many years.
The two national agendas were adopted by the Lao People’s Revolutionary Party’s central committee at its extraordinary plenary session, which took place in Vientiane from June 21-25.
The government is determined to urgently address drug abuse and trafficking after learning that drugs are destroying the future of young people and the nation. Despite great attempts by all sectors of society, drug use and trafficking is escalating annually.
To address economic difficulties, the government will need to take stronger action to strengthen revenue collection, encourage austerity, increase the effectiveness of state investment, curb spending and tackle debt repayment, and stabilise the kip.
On Monday, cabinet members met with members of the National Assembly (NA)’s Standing Committee to discuss measures and ways to settle the nation’s debts, according to the Phouthen Pasaxon News.
The government and NA leaders also discussed the enactment and amendment of laws in association with the national agendas.
They touched upon measures and methods to settle the debts owed by the government to private companies that carried out State investment projects.
At the open government meeting, PM Phankham urged cabinet members and representatives of all State sectors to responsibly debate measures to help Laos overcome all challenges.
One of the main challenges for Laos is the rising debt burden and fluctuation of exchange rates, which are driving up inflation and the cost of living.
In addition, the Covid-19 crisis is disrupting economic activity, especially impacting on foreign investment and tourism, which are considered Laos’ main sources of revenue.
Economic activities stalled when Laos went into full lockdown in March last year, prompting companies to lay off workers and close factories.
Vientiane has been under lockdown or partial lockdown for more than two months since the first community outbreak of Covid erupted in mid-April.

By Somsack Pongkhao
(Latest Update July 7, 2021)