PAPUA New Guinea’s balance of payments (BOP) recorded an overall deficit of K1.26 billion for the nine months to September, compared with a deficit of K868 million in the corresponding period last year, Bank of PNG governor Loi Bakani (right) said.
BOP is a statement that summarises an economy’s transactions with the rest of the world for a specified time period. The BOP, also known as balance of international payments, encompassed all transactions between a country’s residents and its non-residents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. In the September 2013 Quarterly Economic Bulletin (QEB) overview, Bakani said a deficit in the current account, more than offset a surplus in the capital and financial account. He said deficit in the current account was attributed to a lower trade surplus and higher net service payments. “The surplus in capital and financial account was mainly due to inflows from capital transfers and other investments, which more than offset higher net outflows from portfolio investments.” Bakani said level of gross foreign exchange reserves at the end of September this year was K7.24 billion (US$3 billion), sufficient for 8.4 months of total and 13 months of non-mineral import cover. Bakani said the bank maintained a neutral stance of monetary policy by keeping kina facility rate unchanged at 6.25% over the September quarter of 2013, following low inflation outcomes in the first two quarters of 2013. He said domestic interest rates moved upwards between the end of June and September 2013. “The bank continued to utilise its open market operation (OMO) instruments in conduct of monetary policy in September quarter of 2013”. Bakani said there was a net retirement totalling K466.2 million in central bank bills during the quarter. “The government also made a net retirement of K120.5 million in treasury bills while issuing a total of K266 million of inscribed stock during the quarter. “The cash reserve requirement for commercial banks was maintained at 8% in the September quarter, 2013.” Meanwhile, Bakani said the average level of broad money supply increased by 2.4% in September quarter this year, compared with an increase of 4.1% in the June quarter. “This was mainly influenced by an increase in average net claims on central government as a result of increased issuances of securities and drawdown of government deposits, combined with an increase of 4.7% in average credit to private sector. “Average net domestic claims outstanding, excluding net claims on the central government, increased by 3.1% in the September quarter, following an increase of 3.8% in the June quarter.” PNG Facts / The National NEW Britain Palm Oil Ltd suffered a drop in the volume of processed fresh fruit bunch (FFB) during the first nine months of this year.
During the January-October period, the palm oil company processed a total of 1,620,000 tonnes of FFB, down 7.2% from its output during the same period last year. It also processed about 463,750 tonnes from smallholders, also reflecting a drop of 12.2% from the same period in review. Chief executive Nick Thompson said this year had been a challenging one for the company. NBPOL also experienced a sharper-than-expected drop in available FFB for harvest during the third quarter. Comparing the third quarter output with the same period last year, NBPOL said in a report that it suffered a 9.1% fall from its estates and 18.4% from smallholders. The report noted that while output volumes had been disappointing, these results were broadly in line with regional yield declines reported across Malaysia and Indonesia, suggesting that this was likely to be a biological yield effect. Crude Palm Oil (CPO) extraction rates during the period averaged 21.98%, as compared with last year’s 22.24%. Lower FFB production and lower extraction rates resulted in an 8.3% drop in volume to only 356,085 tonnes of CPO from the same period last year.. On the other hand, palm kernel oil (PKO) production was 35,411 tonnes, up 30.3% from the same period last year. NBPOL said the increase reflected the oil mill’s an improvement in the palm kernel crushing capacity. The lower kina-US dollar exchange rate resulted in year-to-date currency losses of US$ 24.9 million as compared with the US$ 12.0 million of currency gains in the same period last year. Thompson said: “The current financial year continues to be challenging for the group. “However, the business is now well-positioned to capitalise on an improving palm oil pricing environment with the expected return to normalised FFB production and extraction rates next year.” THE Internal Revenue Commission (IRC) is working hard to achieve its vision of being the best public sector agency in PNG and the leading tax administrator in the Pacific.
IRC recently conducted its end-of-year review to evaluate its performance against the IRC 2013-17 corporate plan and the 2013 annual work plan. The tax agency said it was on track to hit its revenue target of about K7 billion, its biggest achievement for the year. In a statement, Commissioner General Betty Palaso said 2013 started with the launch of IRC corporate plan last January. She said the plan set the blueprint for IRC’s transformation into a modern and efficient tax administrator, with 2013 being the first year of implementation. Treasury Minister Don Polye received the Order of Saint Michael and Saint George (CMG) from Governor-General Sir Michael Ogio at Government House yesterday.
Polye was given the award by the Queen for his “services to the people of Kandep and PNG as a whole”. He had served as deputy Prime Minister in the former government led by Sir Michael Somare. Vice-minister for Treasury and Sohe MP Delilah Gore was at the ceremony. “This gives me the humble feeling to continue provide service to the people of this country, my family and those that are around me and importantly the people of Kandep who elected me,” Polye said. “It gives me the mandate to perform and enhance my contribution in the meaningful way to the people of this great nation.” He said the value of the award was not in the medal but in his heart. Polye said all must share prosperity in the country. He called on the business people including women and youth to actively participate in business |
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