Lao PDR's 9th National Socioeconomic Development Plan Financing Strategy (2023-2025)

Lao PDR's 9th National Socio-Economic Development Plan (NSEDP) Financing Strategy (2023-2025) represents the country's first comprehensive framework for financing national development, applying an integrated national financing framework approach to support LDC graduation by 2026 and SDG achievement.

The strategy addresses critical challenges including low revenue-to-GDP ratios compared to regional peers, challenging debt levels, and insufficient private sector contributions, compounded by recent shocks from COVID-19, global food and energy crises, and climate change impacts.

The strategy encompasses four core areas structured around public and private financing (both domestic and international), with priority focus on human capital development and green, climate-resilient growth. Through extensive multi-stakeholder consultations, 19 policy directions and 54 practical actions were identified.

Key priorities include relinking fiscal policy with inclusive growth by broadening the tax base without compromising environmental objectives, ensuring budget allocations align with the 9th NSEDP outcomes, attracting quality FDI through non-fiscal incentives, and reducing debt levels through ongoing negotiations and improved debt management.

The strategy emphasizes improving coherence and effectiveness of all financing flows through strengthened multi-stakeholder partnerships, with governance and monitoring mechanisms led by the Ministry of Planning and Investment in collaboration with UN support and private sector engagement.