Lao President Thongloun Sisoulith has directed the government to take effective measures to tackle the rising inflation rate and the depreciation of the Lao kip currency within the next month.
Speaking at the government cabinet meeting on 15 July, Thongloun Sisoulith stressed the importance of keeping the cost of living manageable for all citizens, including general workers, government officials, military personnel, educators, and healthcare professionals.
The president stated that the government must create conditions to sustain an acceptable rate of inflation and living costs, emphasizing the necessity to alleviate the ongoing financial challenges faced by the population and that they must ensure the success of this operation by 15 August.
The order came after the country faced consecutive increases in the inflation rate during the first six months of 2024, with the latest rate standing at 26.2 percent in June, according to the Lao Statistics Bureau.
To strengthen economic stability, the president recommended the government boost foreign currency reserves by increasing the flow of money from investments and exports into the banking system. This, he noted, is essential for maintaining sufficient reserves for the import of essential goods.
He also advised against excessive spending of foreign currency on non-essential imports and called for the accumulation of gold reserves as a protective measure. A key part of this strategy is reducing reliance on foreign currency and preventing exchanges outside the formal banking system.
To further tackle these pressing economic and financial challenges, Thongloun encouraged cabinet members to adopt radical changes, including seeking additional funds from diverse sources to ensure timely debt payments. He reiterated that monetary policy must focus on stimulating the economy while effectively managing currency exchange rates.
According to the president, addressing fiscal responsibility would also play a crucial part in developing the economy. Thongloun highlighted the importance of collecting debts owed to the government and auctioning off assets confiscated from criminals. He also advocated for the seizure of properties belonging to individuals engaged in illicit activities following their court convictions, thereby reinforcing the government’s commitment to integrity and accountability.
