Govt tackles economic, social issues at cabinet meeting

The government has outlined urgent measures to address economic and social challenges, including inflation, debt service, air pollution, and school dropouts, during its monthly cabinet meeting for January.

Dr Sonexay Siphandone chairs the government meeting.

The two-day meeting, which began on Monday and was chaired by Prime Minister Sonexay Siphandone, reviewed the government’s performance in January and set priorities for February, focusing on economic stability, infrastructure, and legal reforms.
A key issue discussed was economic recovery, with the government instructing the relevant sectors to curb inflation, stabilise currency exchange rates, and strengthen revenue collection.
Efforts will also focus on promoting local production, limiting imports, and securing financial support for businesses.
Inflation in Laos was recorded at 15.5 percent last month, a sharp decline from the 24.44 percent recorded in January last year, according to the Bank of the Lao PDR.
The government stressed the need to ensure high dry-season crop yields by ensuring sufficient water supply, fertiliser and plant varieties, while identifying goods that can be produced domestically to reduce reliance on imports.
The cabinet also addressed concerns over illegal vehicle imports, labour issues, and electricity shortages. Authorities were directed to step up law enforcement and introduce stricter measures to resolve these problems.
To combat air pollution, the government called for stricter controls on forest burning, which poses risks to public health and the economy. Authorities will also monitor the environmental impacts of mining and industrial projects and enforce measures to prevent pollution.
The meeting also reviewed preparations for Laos’ participation in the World Expo 2025 in Osaka, Japan, where businesses will showcase Laos’ economic and cultural potential.
Legal reforms were another key agenda item, with discussions on amending the Law on Local Government and the Law on Civil Servants for consideration at the next sitting of the National Assembly.
Revisions to the Law on State Budget were deemed incomplete and will require further work by the Ministry of Finance before submission.
The meeting agreed in principle to adopt the drafts of six pieces of legislation, namely the Digital Government Strategy, Decree on Clean Agriculture, Decree on Carbon Credits, Decree on National Railway Reserves, Decree on Adoption of Children, and Decree on Scientific Researchers.
The cabinet also discussed education sector improvements, calling for more support for teachers in rural areas and urging children who drop out of school to return to education.
Parents in remote areas will be advised about the importance of schooling, while policies for volunteer teachers will be reviewed.
Other key topics included debt service, the use of 2024 surplus funds, and the implementation of agreements from recent ASEAN and bilateral meetings.
The government will continue to monitor economic and social challenges to ensure effective policy implementation in the coming months.

By Times Reporters
 (Latest Update February 6, 2025)