Call for tighter control

 TREASURER Patrick Pruaitch is urging the Bank of Papua New Guinea to look into companies that are breaking PNG laws by not repatriating export revenues meant to come into the country.

He said one of the serious constraints facing PNG’s economy in recent times had been the lack of foreign exchange, particularly for companies that need to import goods and services. 

Speaking at the launch of the Financial Services Sector Review yesterday, Pruaitch said this may be understandable at times when PNG’s current account was under pressure but this was not the case at present.

He said it was “a matter of urgency” that the Central Bank look into the matter

Pruaitch suggested that the Financial Sector Review make recommendations on four key areas at least. They are:

• Expanding the Government Securities Market and creating a secondary market for Central Bank Bills and Treasury Bills;
• ensuring effective use of the national payments systems;
• advancing financial inclusion and literacy; and,
• Developing an appropriate legal and regulatory framework for supervision of financial sector.

“I understand the review will be completed by the middle of next year so recommendations can be made to NEC on new measures that can be undertaken.”