The Prime Minister Hon. James Marape, MP, says the Papua New Guinea economy has the potential to grow into a K200 billion economy.
The Prime Minister stated this at the Independence Dinner he hosted for the business community at the Parliament House.
Prime Minister Marape said advanced discussions are ongoing for P’nyang, Papua LNG, Porgera, Waffi-Golpu and PASKA.
“These five projects have the potential to push our economy for K80 billion to possibly K200 Billion in the next ten years,” he said.
“I have encourage Exxon Mobil, Oil Search, Newcrest, Harmony and TOTAL to speak their mind.
‘We will work with you and if you feel that we are encroaching into your domain, do not feel reserved to speak up and
THESE are very difficult economic times but in some ways, Papua New Guinea is currently better off than countries with narrower economies, Institute of National Affairs (INA) executive director Paul Barker says.
Barker, when responding to queries from The National, said other countries for example were almost exclusively dependent upon tourism, oil or a single commodity. “Papua New Guinea’s economy is larger than other Pacific nations, but also more diverse,” Barker said.
“During 2020 some of these commodities have suffered badly from loss of global demand and low prices, including: oil and gas; tourism, hospitality and air travel; and some agricultural crops, notably vegetable oils, which are also partial substitutes for oil.
Papua New Guinea Treasury Minister Ian Ling-Stuckey has stated that the country would take years to fix a K50 billion debt that was inherited from the previous governments.
“Eight years ago, PNG’s debt level was K8 billion.
Our best estimate was that by mid-2019, this had lifted to K37.6 billion using international debt standards.
The level of debt arrears is now conservatively estimated at least K4 billion higher,” Mr Ling-Stuckey said.
He said the budget deficit legacy would add at least another K8.4 billion to PNG’s debt levels.
THE Papua New Guineal economy has been set back by K10.7 billion, according to the country's Treasurer Ian Ling-Stuckey.
He said the estimate was that more than 85 percent (K9.2 billion) of the contraction in the economy was due to the Covid-19 with less than K1.5 billion “non-Covid-related”.
He attributed the reduction in economic growth to:
IT is incumbent on the two banks partnering with the government on the K200 million credit scheme to ensure people in rural areas and those in the informal sector can access the funding, Commerce and Industry Minister William Duma says.
Responding to questions raised in Parliament on the SME funding by Nuku MP Joe Sungi and Moresby North East MP John Kaupa, Duma said there were clauses in agreements between the Government and the banks to go out of their way to assist people.
He said while Bank South Pacific and National Development Bank did not have branches in most districts to roll out loans easily to small and medium enterprises (SMEs) they would require the banks to set aside funds for those areas as well as improving accessibility.
Papua New Guinea Prime Minister James Marape has assured the nation that despite tough times , his government will use budget and instruments of government as tools to ensure the economy is alive. “ This year is one of the toughest years in our 45 years of Nationhood. Covid 19 induced global economic contraction means that we have less then forecasted economic activities in 2020”, Prime Minister Marape says.
Like most governments around the world who are using both fiscal and monetary tools to assist their citizens and business pull through, the Marape Steven Government under Treasurer Ian L Stucky will hand down a supplementary budget to address the drop in revenue whilst using budgetary reallocations to make interventions, especially at key sectors to ensure economic sustainability and essential service provisions.
Papua New Guinea Economy Watch
This blog page updates all the Economy activities in Papau New Guinea. ..Get Free Webpage for your company/Organisation . Contact us