Anthony Smaré, President of the Papua New Guinea Chamber of Resources and Energy, has issued a stark warning regarding the potential consequences of the Gold Bill's restrictions on the independence of the Central Bank in the production of national currency. In a statement released yesterday, Smaré cautioned that such restrictions would inevitably lead to uncontrolled inflation and a significant deterioration of the PNG Kina. Smaré highlighted the importance of the reforms introduced by former Prime Minister Sir Mekere Morauta, which established the Bank of Papua New Guinea (BPNG) as independent from government and foreign influences in its management of monetary policy and regulation of the banking sector. The International Monetary Fund (IMF) has greenlit an additional disbursement of US$127 million (approximately K492 million) in financing, bolstering its total financial support under the current arrangements to US$303 million (K1.2 billion) to Papua New Guinea.
This decision comes in the wake of a comprehensive review conducted by a team from the IMF, led by Tahsin Saadi Sedik, during their visit to Port Moresby from April 25 to May 8. The team assessed the progress made under the home-grown economic reforms, which are supported by the IMF Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, totaling US$918 million (about K3.6 billion). The Department of Personnel Management (DPM) has unveiled a new housing policy aimed at addressing the housing needs of public servants across Papua New Guinea. Nancy Levi, the Executive Manager of Public Service Housing at DPM, disclosed this groundbreaking initiative during a session with staff from the National Statistical Office (NSO) in Port Moresby.
Levi outlined three key components of the housing policy introduced by the DPM, namely the public servant housing policy, district housing policy, and institutional housing governance framework. She emphasized the pressing need to establish a sustainable financing mechanism to enable public servants to afford housing, citing the introduction of a "housing bucket" concept aimed at efficient management of housing resources. Papua New Guinea's Opposition Leader, Douglas Tomuriesa, has voiced grave concerns over the persistent foreign exchange (forex) shortage plaguing individuals and businesses across the nation. Tomuriesa emphasized the detrimental impact of the Kina's devaluation on average income earners, citing escalating prices and financial strain on households. "The price for a 20kg bag of rice is now K105," Tomuriesa lamented, illustrating the tangible effects of economic instability on essential commodities. He highlighted a recent increase from K95 just two weeks prior, underscoring the urgency of addressing currency devaluation and its ripple effects on daily livelihoods. Tensions between Prime Minister James Marape and New Ireland Governor Sir Julius Chan have escalated as Papua New Guinea's Parliament gears up for a crucial session later this month. The clash between the two leaders centers on the country's current state of affairs and the leadership of the nation. In a bold move on Thursday, Sir Julius called for a change in government, signaling his intention to push for a motion of no confidence when Parliament reconvenes on May 28. This anticipated move has sparked a heated exchange between Sir Julius and Prime Minister Marape, who voiced strong opposition to the notion of another disruptive motion. Prime Minister Marape criticized Sir Julius for advocating a vote of no confidence, citing the historical disruption caused by such motions since 1980. Marape pointed out that Sir Julius himself initiated the first motion of no confidence against the late Grand Chief Sir Michael Somare, setting a precedent for subsequent political upheavals. In a disheartening forecast for Papua New Guinea's economy, the national currency, the Kina, is projected to persist in its downward trend until next year, adversely impacting prices of goods and services. However, a glimmer of hope emerges as experts anticipate a turnaround by 2026, as per recent research.
The Australia New Zealand (ANZ) Bank's foreign exchange insight research, led by international economists Kishti Sen and Tom Kenny, has revealed a concerning trend. The value of the Kina has steadily declined each month since May of the previous year. This decline averaged 20 basis points (bps) monthly, culminating in a value equivalent to US$0.2683 by the end of the year, marking a 5.5% decrease from the previous year. Papua New Guinea's (PNG) Information and Communications Technology (ICT) Minister, Timothy Masiu, has sounded the alarm on the escalating risks posed by state-sponsored cyber threats to the nation's cybersecurity. Minister Masiu cautioned that these threats, whether originating from private entities or state actors, have the potential to wreak havoc on PNG's digital infrastructure, plunging the country into chaos. Of particular concern are ransomware attacks, malicious scripts or programs designed to block access to digital systems or data. Minister Masiu cited a notable incident in 2021 where a ransomware attack paralyzed the finance department, necessitating a staggering K30 million for system reconstruction. Recent revelations suggest a promising upturn in living standards for Papua New Guinea (PNG) residents after enduring a forty-year decline. Ian Ling-Stuckey, the Minister assisting the Prime Minister on treasury matters, shared this optimistic forecast following his participation in an economic seminar held in Mt Hagen, Western Highlands, on Tuesday. The seminar, attended by ministers, department heads, and World Bank officials, shed light on strategies to bolster PNG's economic growth and job creation prospects. Ling-Stuckey underscored the gravity of PNG's living standards decline, citing a substantial drop from an estimated average income of K11,385 per person in 1980 to K6,819 in 2000. Furthermore, from 2012 to 2019, living standards continued to regress, plummeting from K7,522 to K6,656 per person. This downward trend starkly contrasted with global advancements, signaling a pressing need for economic revitalization. Results from the investigation of two University of Papua New Guinea (UPNG) staff accused of taking payments from students to give grades is not yet completed, according to local media. In July last year, the paper reported on allegations against two UPNG staff of the ICT Division accused of taking money and giving grades to students upon requests. Department of Higher Education Research Science and Technology acting secretary Fr Jan Czuba advised that the investigation was still underway. This is the eighth month since the start of the investigation. Prime Minister James Marape of Papua New Guinea (PNG) has officially declared his departure from Facebook and issued a cautionary message to users regarding fraudulent accounts bearing his name and likeness. Marape disclosed that he has deactivated his personal Facebook account, emphasizing that any profiles purportedly associated with him are illegitimate. Despite his withdrawal from the platform, he expressed concern over the proliferation of fake accounts circulating under his name, often misleading unsuspecting users. Reports have surfaced regarding fraudulent profiles utilizing Marape's image, with some falsely claiming his intention to donate to individuals in need. The Prime Minister condemned these deceptive practices, highlighting the potential harm inflicted upon those who fall victim to such schemes. |
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