Co-Chairs of Multi-Stakeholder Round Table,

Distinguished Delegates,

It is a great honor for me to participate in the Multi-Stakeholder Round Table 1 entitled “Mobilizing and Aligning Domestic Public Resources”, which is of great relevance given that the effective mobilization and alignment of domestic resources are fundamental to sustainable development, enhancing national ownership, and minimizing reliance on external financing.

We all are aware that domestic Resource Mobilization is a crucial component of sustainable development financing. LDCs in particular, need to mobilize additional resources to meet our national development priorities and global goals, while enhancing country ownership. Against this backdrop, the Lao PDR has been working to accelerate domestic resource mobilization through reforms in Public Financial Management, tax administration, revenue collection, and overall fiscal management. This includes implementing digital solutions, strengthening institutional capacity, and fostering a more transparent and inclusive economic future. In addition, the Lao PDR has also explored other potential sources of revenue and remains committed to further reform programs, with the aim of raising tax revenue to 20 per cent of GDP by 2030.

To reach this ambitious target, we face significant challenges. These include limited resources to invest in technology and infrastructure, insufficient capacity to administer and enforce tax laws, limited multilateral cooperation, and persistent issues in combating tax evasion, tax avoidance, and illicit financial flow.

In this light, the FFD4 must adopt credible commitments and practical solutions to strengthen tax systems in LDCs. This requires a multi-faceted approach, including increased financial and technical assistance, sustained capacity building, and inclusive policy dialogue.

The FFD4 should also support the LDCs in identifying priority actions at both national and international levels. At the international level, we call for deeper reflection on how official development assistance can be better aligned with domestic resources mobilization goals. Technical assistance and financing for capacity building must be tailored to national needs. Strengthened tax cooperation is also essential to effectively address tax evasion and illicit financial flows.

At the national level, key areas include improving transparency in tax and non-tax revenue collection, strengthening tax policy and administration, formalizing the informal sector, and leveraging technology to enhance efficiency and compliance.

On this note, the Lao PDR remains committed to working closely with all partners to build resilient, fair, and effective financial systems that support sustainable development and ensure that no one is left behind.

Thank you.