Government’s Delayed Relief Funds Leave PNG Businesses Struggling to Recover
As of December 31, 2024, only K50 million out of the K385 million initially promised by the government for businesses affected by the January 10 civil unrest has been distributed, leaving many enterprises grappling with financial challenges. The PNG Chamber of Commerce and Industry (PNG CCI) reported that total claims for wage losses, debris removal, and rebuilding efforts have reached an estimated K785 million.
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| Government’s Delayed Relief Funds Leave PNG Businesses Struggling to Recover [Image : Chamber President Ian Tarutia] |
Chamber President Ian Tarutia, in a recent press briefing, expressed frustration over the slow pace of relief fund disbursement, acknowledging that while the relief assistance package was a welcome move, its execution has been far slower than expected. "The Government’s relief assistance package was welcomed, but its dispensation of funds has been slow," Tarutia said. He also pointed out that the 2025 National Budget lacks a dedicated allocation for the continuation of the relief efforts. However, the Business Coalition has been assured that the necessary funds will be accounted for elsewhere within the budget.
In addition to the delayed relief, Tarutia identified several significant issues faced by businesses throughout 2024, as reported by provincial chambers. These include unreliable power supply, inflation, law and order concerns, limited access to foreign exchange, and difficulties in domestic air travel. According to Tarutia, these factors have contributed to rising operational costs, reduced growth opportunities, and a dampened sense of economic confidence.
Despite these challenges, Tarutia highlighted some positive developments in the business sector. The Bank of PNG has recently licensed three new banks—Credit Bank, Tisa Bank, and the State-owned National Banking Corporation—offering hope for a more competitive banking environment. Tarutia also welcomed the government's announcement at the Sydney Investment Conference regarding a Public-Private Partnership (PPP) arrangement with PNG Power, aimed at improving the reliability of the national power supply.
Reflecting on the country’s progress as it nears its 50th year of independence in 2025, Tarutia called for stronger leadership and effective governance to address ongoing development challenges. "Good governance across our many public institutions is lacking, and the people pay the price for ineffective delivery of services. Strong, decisive leadership is critical at this juncture of our country’s history," he emphasized.
Looking ahead, Tarutia reaffirmed the PNGCCI’s commitment to working with stakeholders such as USAID, the World Bank, and the Asian Development Bank to support private sector growth in alignment with the Government’s Medium Term Development Plan IV (MTDP IV). He urged political leaders to prioritize the nation’s collective development over individual gains, emphasizing the Chamber's dedication to collaborating with the government to foster PNG's economic and social progress.
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