February 4, 2018

PNG need Infrastructure development for Economy growth

Papua New Guinea has the potential to improve with the availability of reliable infrastructures.

Kina Bank chief executive officer Greg Pawson said this yesterday at the 2018 Prime Minister’s back to business breakfast that infrastructure is one of the impediments impacting businesses that have already been doing it tough out in the markets.

Mr Pawson said the increase in inflation will affect business and ordinary citizens with GDP growth to remain low and flat for the next 12 months.
He said the market’s general conditions will be slow including import demand there with the upcoming expansions of the PNG LNG should serve as a catalyst to make progress, freeing backlog of import quotas.
Mr Pawson said challenges the country is facing are not similar to many developing economies around the world.

Instead, he said the country should now be looking at investing more with the awakening sleeping giant, India as the Indian economy presents some interesting opportunities for PNG.
“This followed the visit by the Indian president Pranab Mukherjee in 2016 has led to signing a bilateral relationship between the two countries so we can improve our bilateral trade relationship with India,” he said.

Mr Pawson said the key challenges remains closely with the economy to ensure economic and job opportunities is available to the broader population and the country develops mechanisms for the market.

“The economy is narrow and is limited to grow, the GDP growth is expected to pick up at 1.9 per cent to 3.5 per cent through the sectors of agriculture, forestry and the other sectors.
“This is encouraging for those in the formal sector,” he said.
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