Image from Laotian Times.
VIENTIANE (Laotian Times): The Lao government is striving to surpass its state budget revenue targets for a fifth consecutive year,
With a vision toward an independent and self-reliant economy, Laos is aiming to achieve a surplus by 2025, said Sonexay Sithpaxay, Governor of the Bank of Laos, in the Second Open Government meeting held from 6-7 January.
The government is planning to strengthen revenue collection by enforcing compliance with laws, modernizing revenue systems, and reducing tax exemptions that fail to encourage investment.
During the two-day meeting, Sonexay stressed that said spending will be careful, using domestic revenue to pay debts and reduce borrowing
The country will also reduce imports of goods that can be locally produced, according to the officials.
Key initiatives include promoting sustainable mining practices and increasing the value of production in areas such as biofertilizers, animal feed, construction materials, and consumer goods.
On maintaining monetary stability, Sonexay stated that the government will implement tight monetary policies and a sound exchange rate strategy.
It plans to manage foreign exchange flows through the banking system while promoting the use of the Lao kip for cross-border transactions with neighboring countries to lessen reliance on foreign currencies. Credit allocation will be optimized to stimulate local economies effectively.
Sonexay also noted that investment and business processes will be streamlined by implementing simpler regulations and removing unnecessary barriers to attract domestic and foreign investors. He added that previously approved projects will be closely monitored, while those that are underperforming will face decisive action under the law.
Mining activities, particularly placer gold extraction, will undergo stricter regulation. The government will permanently suspend placer gold mining permits and address unauthorized mining operations. Inspections will be conducted to close loopholes and ensure accurate reporting, according to Sonexay.
Overall, the country plans to expedite the development of complete ore processing plants for resources like coal, gold, and iron, further enhancing Laos’ value-added industries. - Laotian Times
