Vientiane (VNA) – Lao Prime Minister SonexaySiphandone has directed authorities to take actions to urgently address thecountry’s economic and financial difficulties amid continuing depreciation ofthe Lao kip, rampant inflation and high public debts.

The PM signed an eight-page order on August 29 thatinstructed concerned sectors to stabilise exchange rates, rein in the pricerise and to do more to settle the debts owed to foreign countries, VientianeTimes reported on August 31.

The PM urged state agencies and society to join forcesin the battle to address economic challenges and to overcome this difficulttime.

One of the biggest challenges for Laos is stabilisingthe value of the Lao kip and ensuring adequate supply of foreign currenciesneeded to import goods.

Under the new order, the Bank of Laos has beendirected to deal with any unlawful activities aimed at manipulating exchangerates.

The central bank was tasked to monitor and identifytarget groups that carry out money changing activities, using their personalaccounts to run currency trading. The government warned it will penalise anyonewho conducts money changing as this role is granted only to commercial banks.

The government ordered state agencies to implementmeasures that will bring in more foreign exchange to Laos and restrict importedgoods.

The government announced it will cut public spendingon non-essential projects and restrict the imports of luxury goods and productsthat Laos can produce.

In addition, the government will continue promotingthe use of electric vehicles to reduce imports of fuel, one of main itemsrequiring a large amount of foreign currency to import.

As of May this year, almost 4,000 electrically poweredvehicles had been imported into Laos, saving hundreds of thousands of litres offuel that would have to be imported.

The government’s next goal is to have 550,000 electricvehicles in use, accounting for at least 30% of all vehicles, and for 100charging stations to be installed by 2030.

The PM instructed the Ministry of Finance toprioritise Lao products when buying office appliances for state agencies.

Official trips abroad by state officials to attendmeetings, seminars and workshops must be selective, with only important topicsfor the nation being allowed.

Authorities are banned from buying expensive importedbeverages, but they are permitted to buy locally made drinks to use forwelcoming domestic and foreign guests.

Authorities are also not permitted to spend statefunds for buying imported gifts for domestic and foreign guests.

Meanwhile, the Ministry of Foreign Affair wasentrusted to study the visa policy, notably unilateral visa exemption andmulti-visas granted to foreign visitors, as a means to attract moreholiday-makers to Laos./.