By Staff Reporter

PNG Does not Need IMF Intervention

31/3/2023

OPPOSITION Leader Joseph Lelang says Papua New Guinea does need intervention by the International Monetary Fund (IMF) or the World Bank but the Government has invited them into the country by its inability to manage the economy responsibly.
In a statement yesterday, Lelang said the Government needed to take responsibility for putting the country in a “precarious economic position” where it was now being dictated to by these world financial institutions as well as other multilateral and bilateral partners.
“We are a resource rich country, why are we going to them?” he asked
“As Shadow Treasurer in the last Parliament and as Opposition Leader today, I have pointed to this inevitable outcome because of the red flags that the Government has been raising since it took office in May 2019.

“These were bad decisions that were entirely avoidable but have now led unerringly to the precipice that our economy hangs.
“This is the first time over 20 years that the IMF has touched us in this manner.
“Taxes will increase and our businesses and our people have suffered enough under the current regime as this country is already over-taxed in many areas.
“The kina will be devalued substantially which will affect our external debt repayments and negatively affect our foreign exchange.”
Lelang said interest rates would rise and banks would no longer be able to support businesses.
He said, however, that the situation the country found itself in could be corrected and improved.
“The situation is reversible but we do not need IMF,” he said.
“It is going to be painful but it is doable if we know how to do it and if we are focused and determined to put in policy measures, identify reforms and be disciplined.”
Lelang said while the Marape Government had not brought about the shortage of foreign exchange, it had not done anything to address it and had made things worse.

Statement/The National / PNGfacts

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