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Dr Xaysomphone Phomvihane (third right) and his deputies stand for the National Anthem at the opening of the National Assembly on Monday.

National Assembly opens with PM outlining measures to tackle economic woes

The National Assembly (NA)’s 9th legislature opened its 4th ordinary session on Monday, giving the floor to Prime Minister Phankham Viphavanh to outline measures to address the country’s ongoing financial and economic problems.
Delivering the opening remarks, Assembly President Dr Xaysomphone Phomvihane said ongoing complex changes in the region and the world have affected many countries and hindered Laos’ efforts to resolve its economic problems, which have been steadily mounting over the years.
In addition, he added, Laos is facing new challenges including fluctuations in currency exchange rates and the skyrocketing price of goods and petrol, which is causing hardship for large number of people.
Spelling out plans intended to ease the situation, Prime Minister Phankham Viphavanh said his administration would focus on regulating currency exchange rates, the price of goods, money growth (M2), and inflation.
Laos is currently suffering spiralling inflation. Year-on-year inflation surged by 36.75 percent in October, up from 34.05 percent recorded in September and 30.01 percent in August, according to the Lao Statistics Bureau.
The PM said the Ukraine conflict, which resulted in the West imposing sanctions on Russia, was an added blow to economies already struggling to cope with the effects of the Covid-19 pandemic. The resulting disruption in supplies from Russia and Ukraine has resulted in a global economic downturn, with some countries entering a period of recession.

Prime Minister Phankham Viphavanh.

“The cost of petrol and food in particular has risen by an unprecedented amount,” the PM told the session, which continues until December 30.
“This has resulted in many countries recording their highest inflation rate in 40 years.” In October, inflation rates touched 7.7 percent in the United States and 10.7 percent in the European Union, with more than 10 countries in Europe experiencing inflation rates above 10 percent.
The raising of interest rates by the US Federal Reserve has strengthened the US dollar, which weakens the value of other currencies. Amid oil-driven inflation, Premier Phankham promised that a long-term supply of petrol would be available in Laos, after the country suffered a severe shortage of fuel in the middle of this year.
He said the government would modernise the system of revenue collection to ensure that all taxes and revenue owed to the government were paid in full, while also exploring possible new sources of revenue.
Meanwhile, the government will continue to rein in expenditure as part of its austerity policy to combat the financial problems it is experiencing.
The head of government assured National Assembly members that the government would strive to repay its foreign debts and prevent the country from going into default. Simultaneously, the PM pledged to seek funding to repay debts owed for state-funded development projects, so that contractors could continue with their business operations. The government vowed not to allocate funding for ineffective state-funded projects, while prioritising investment in poverty alleviation.
The government will also intensify action to improve the business environment along with the reform of state-owned enterprises.
The cabinet will allocate funds to support businesses that process agricultural produce for export.
Among those attending the opening session were the Secretary General of the Lao People’s Revolutionary Party and President Thongloun Sisoulith, cabinet members, and retired state and Party leaders.
Items on the agenda include reports on the implementation of the socio-economic development plan, budget plan for 2022 and plans for 2023, and reports on achievements made in implementing the national agendas for 2022 to tackle the drug problem and economic and financial difficulties, as well as the plans for these in 2023. Reports on the implementation of work plans for 2022 and the 2023 work plans of the State Inspection Authority, State Auditing Organisation, the Supreme People’s Prosecutor’s Office, and the Supreme People’s Court will also be presented.
National Assembly members are scheduled to debate and approve newly-drafted laws and amendments to existing laws.
These include draft laws in relation to passports, waterways and museums, while amendments to nine laws including those relating to attorneys, science and technology, and electronic transactions will also be considered. Attendees will also hear reports on the implementation of the National Assembly’s 2022 work plan and plan of work for 2023, as well as a report by the Assembly’s Standing Committee on plans for the enactment and amendment of laws from 2023-2025.


By Times Reporters
 (Latest Update December 6, 2022)

   

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