New Housing Policy Rolled Out by Department of Personnel Management for Public Servants in PNG

 Navin Raju, the Chief Executive Officer of City Pharmacy Limited, has sounded the alarm on the escalating inflationary pressures spurred by the depreciating Kina. Raju emphasized the firsthand experience of businesses grappling with soaring import costs, resulting in elevated prices for consumers across store shelves.

"The weakening Kina, coupled with foreign exchange shortages, is exacerbating the situation," Raju noted. "The delay between purchasing goods and obtaining necessary foreign currency leads to additional exchange rate losses, which unfortunately cannot be recuperated. This trend is expected to persist as the Kina continues to depreciate."

Raju cautioned consumers to brace themselves for a surge in the prices of goods and services, attributing the phenomenon to the combined impact of currency devaluation and foreign exchange constraints.

"In essence, the confluence of a weakening Kina and foreign exchange shortages escalates the cost of importing goods for businesses, ultimately burdening consumers who bear the brunt of higher product prices," Raju remarked.

While there are indications of a gradual economic recovery nationwide, buoyed by positive developments such as the uptick in cocoa prices in the Islands and the resumption of projects in the Highlands, Raju underscored the significance of wage increases to mitigate the adverse effects of inflation on consumers' purchasing power.

David Lawrence, Chairman of PNGX, weighed in on the broader economic implications of currency depreciation, noting its potential to enhance export competitiveness and stimulate the development of local industries. However, Lawrence emphasized the pivotal role of effective economic policies and government support in mitigating any adverse effects on the economy and foreign investment.

"The ability to attract and retain investment, particularly in emerging sectors, will be pivotal in offsetting the negative repercussions of currency depreciation," Lawrence remarked, underscoring the importance of proactive measures to navigate the challenges posed by currency adjustments.

As Papua New Guinea navigates through the complexities of currency fluctuations, stakeholders stress the imperative of coordinated efforts to safeguard economic stability and mitigate the impact on businesses and consumers alike.

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New Housing Policy Rolled Out by Department of Personnel Management for Public Servants in PNG