PNG Government plans to clear all sovereign debts in 12 years

 The PNG Treasurer Ian Ling-Stuckey says the Government has a plan to clear all sovereign debts in 12 years.

He said, in discussions with the International Monetary Fund (IMF) and other multilateral and bilateral partners, the main point was to ensure that debt was maintained so they were looking for physical consolidation to ensure that PNG’s deficit continued to reduce.

Ling-Stuckey said, in regards to the Government’s 13-year physical plan: “Our government, if still in office, will provide an option to clear all sovereign debts from all governments by 2034.”

He was responding to a series of questions asked by Ialibu-Pangia MP Peter O’Neill surrounding the state of the country’s economy, including the IMF position on the public service wages blowout, and the Government’s borrowing over the last three years.

O’Neill said the debt levels had increased from K26.9 billion (32.66 per cent of GDP) in 2018 to K52.876 billion, reflecting 52.4 per cent of GDP, by the end of this year.

He questioned the Treasurer where the borrowed money was spent and what the plan was to curb inflation currently affecting ordinary people.

O’Neill said the ministerial statement “Reform Progress and the Future” was presented by Ling-Stuckey in Parliament on Tuesday, saying lack of numbers did not reflect good governance and transparency.

He questioned if the statement was based on numbers, then was it the 2021 final budget outcome.

O’Neill also asked when the IMF report on the economy would be tabled in Parliament and what it would mean for IMF staff monitoring the economy.

Ling-Stuckey said all the comments referred to in the statement, including the numbers, could be found on the IMF website and the final budget outcome for last year would be tabled next month.

Source: The National/One PNG News

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