BADILI Hardware Chairman Raises Alarm Over Impact of PNG Kina Devaluation
Ashok Kumar, chairman of BADILI Hardware, has raised alarms over the detrimental effects of the continuous devaluation of the Kina on the lives and businesses of Papua New Guineans. Despite recent economic challenges including recession and low business confidence following civil unrest on Jan 10, Kumar remains hopeful for a turnaround with the commencement of major projects.
Kumar highlighted the stark reality of the Kina's devaluation, noting that K500 can now only purchase 60% of what it could previously due to currency depreciation. This has created significant price pressures across various sectors, including the building industry.
While BADILI Hardware managed to weather the storm of civil unrest, Kumar acknowledged the broader economic challenges affecting the business as economic activity dwindled amidst the recession. Nonetheless, he affirmed the company's commitment to providing quality products at affordable prices, resisting the temptation to compromise on quality by importing cheaper alternatives.
In light of the prevailing economic conditions, Kumar expressed hope for the commencement of major multi-billion Kina projects to stimulate economic activity and bolster the currency. He noted that industries such as mining and agricultural commodities like coffee, cocoa, and oil palm have shown resilience in the market.
However, the reliance on imported products, such as rice and tinned fish, continues to strain the economy. Kumar applauded government efforts to explore downstream processing for agricultural goods to reduce imports and promote local production, citing it as a positive step forward.
BADILI Hardware is taking proactive measures to support locally manufactured products, such as plywood and timber, provided they meet quality standards. Kumar emphasized the company's role in facilitating the retail of locally made products, underscoring their commitment to promoting domestic production and supporting the local economy.
As Papua New Guinea navigates economic challenges exacerbated by currency devaluation, stakeholders like BADILI Hardware are actively engaging in efforts to sustain business operations, promote local production, and contribute to economic recovery and resilience.
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