Party resolves firm action to tackle economic issues

The Lao People’s Revolutionary Party’s central committee has resolved to initiate measures to ensure economic growth of 4.5 percent this year while reining in rampant inflation and slowing the depreciation of the kip.
The Party Central Committee recently adopted a Resolution on the issue at its sixth session, outlining actions to be taken by the government to overcome the ongoing economic issues afflicting Laos and to prevent the country from defaulting on its debt payments.

The government has been asked to boost productivity for export.

Chaired by Party Secretary General Thongloun Sisoulith, the committee’s sixth session reviewed the internal and external factors that are negatively affecting the economy.
The complex changes taking place around the world, including conflicts and political tensions, are all affecting the economy, according to a report from the Party Central Committee Office.
At the same time, Laos is facing challenges relating to foreign currency deficit, skyrocketing inflation, continuing depreciation of the kip, and rising living costs.
All these issues are affecting the leadership role of the Party and the state management role of the government.
All government bodies at the central and local levels are instructed to join forces to enable the country to overcome these challenges and sustain an acceptable level of socio-economic development.
The government was asked to do more to boost production levels so that more goods are produced for export and fewer goods need to be imported, especially of the kind that can be produced in Laos.
It is essential for the government to take steps to help farmers and producers lower production costs and encourage members of the public to buy locally made products.
It is also necessary to review the credit policy to ensure that commercial banks provide more loans to boost commercial production, the Party Central Committee said.
The Party reiterated that the government must ensure that more foreign currency earned from exports and investment enters the country through the banking system instead of being channelled elsewhere.
At present, only a little more than 30 percent of export receipts enter Laos through the banking system.
Over the past six months, the consumer price index increased by 38.06 percent, with the surge in prices closely linked to the depreciation of the kip.
The government is advised to do more to create new revenue streams as a means to boost national income.
The government also needs to plug loopholes that can result in financial losses and pursue a policy of austerity in order to curb debt levels.  
The government was asked to do more to attract private investment to boost economic growth in parallel with improvement of the business environment.

By Times Reporters
 (Latest Update August 3, 2023)