Lao PM spells out govt’s plans for economic self-reliance

VIENTIANE: Since the Secretary General of the Party Central Committee and the President of Laos, Thongloun Sisoulith, signed the decree recently, the government has sought to carry out its recommendations on the creation of an independent economy and self-reliance, Prime Minister Sonexay Siphandone (pic) told the National Assembly on Friday (June 14).

The resolution defines the allocation of responsibilities to central and local government bodies with regard to development.

Priority areas include strengthening of the finance and foreign exchange sector towards self-reliance by increasing the amount of revenue collected so that sufficient funds are accrued to pay off debts.

Another goal is to reduce dependence on foreign loans through greater reliance on the government’s budget and other sources of local finance.

To achieve these targets, state bodies at all levels must take on more responsibility and share in the formulation of policies and measures to seek out additional sources of revenue to ensure the goals stipulated in the resolution are met, Dr Sonexay said.

It is essential to keep foreign currency exchange rates stable by boosting currency reserves and strengthening the value of the kip and setting appropriate interest rates, he added.

At the same time, the general public will be encouraged to use the kip for all transactions, led by the public sector.

Another focus will be on increasing crop yields to ensure food security, with more farming activities to take place on a commercial basis so that self-sufficiency is achieved in the production of rice, other crops, meat, fish and eggs for domestic consumption. Greater agricultural production will help to reduce imports and maintain a balance between imports and exports.

The government will allocate specific areas of land for crop cultivation and livestock raising, and will push for more processing of crops and food products.

Agricultural production will be enhanced through the use of superior animal breeds, animal feed, crops, manure and fertiliser.

The government will also authorise the construction of more and better quality hydropower plants, so that self-sufficiency in terms of electricity supply is achieved.

In a bid to ensure that sufficient supplies of fuel are always available, the government plans to build up oil reserves by constructing oil storage facilities and is looking into the possibility of constructing pipelines and oil refineries.

Another priority will be achieving self-sufficiency in the supply of raw materials to factories, as at present most raw materials are sourced from other countries. - Vientiane Times/ANN