Economy. Papua New Guinea press review
The Government of Papua New Guinea (PNG), led by James Marape, has revealed the first details of its economic stimulus strategy as PNG, like many countries all over the world, faces economic strain due to the COVID–19 pandemics.
The Government of Papua New Guinea plans to review the budget for 2020 as an urgent measure to reduce the burden of the COVID-19 virus on the global and Papua New Guinean economy.
Hon. James Marape said that the government is introducing immediate fiscal measures that will include a review of all tax and non-tax revenue forecasts, a review of spending priorities for health, education, law enforcement and the Public Investment Program (PIP), as well as an immediate cessation of non-essential spending (conferences, vehicle purchases, foreign travel, etc.).
In addition, the Government looking at working with the Central Bank and commercial banks as well as non-banking lenders to defer loan repayments by three months or more. Also the Government will probably postpone some projects, including the population census, until 2021.
«Through policies and incentives, your Government will give a helping hand to our citizens, our small to medium enterprises as well as corporate businesses and our State-owned enterprises»” – said Hon. James Marape.
During a special sitting of the National Parliament of Papua New Guinea, Treasurer Ian Ling-Stuckey announced K5.8 billion (US$1,6 billion) Covid-19, which includes:
• issuance of K2.5 billion in Treasury bonds;
• K1.5 billion in foreign assistance which includes K1.26 billion from the International Monetary Fund (IMF), K170 million from the Asian Development Bank (ADB) and K70 million from the World Bank (WB);
• K0.6 billion to support loan repayment holidays;
• K0.5 billion in superannuation measures to assist people who have lost their jobs;
• K0.5 billion for the health, security and economic sectors;
• K250 million for the health and security response – K175 million for Health, K50 million for Police and K25 million for Defence;