Cautious optimism for PNG economy, says head of superfund

By NATHAN WOTI
PAPUA New Guinea’s economic future remains “cautiously positive”, as performance will be underpinned by a projected recovery in the extractive sector, according to the National Superannuation Fund.
Fund chief executive officer Rajeev Sharma said the fund had predicted an improved performance when the country’s extractive resource projects were operational.
Sharma said the re-opening of the Porgera mine would see an increase in employment at the mine, which is also a positive sign for the fund because it meant more membership.
“Our Strategic Assets Allocation (or SAA) for international investments is currently at 11. 85 per cent of net asset value, which is well within both the prudential standard limit of 35 per cent and the board-approved limit of 15 per cent,” he said.
“The limited foreign exchange continues to restrict our ability to fully capitalize on international opportunities, it’s worth nothing the potential benefits had we been able to invest fully.
“Investing the full 15 per cent in the international markets could have generated an additional K41.7 million in come, translating to a 0.64 per cent increase in crediting rate,” Sharma said.
He added that the fund would continue to navigate and adapt its way through the current “evolving economic landscape” as it seeks opportunities ahead, domestically and internationally.
Last week the fund announced its net profit at K597 million, while its total assets valued was at the K7 billion mark.
Meanwhile, the fund’s Trustee Board also approved a 9 per cent interest crediting rate on its member’s savings. The fund’s 680,000 members across the country will see increase in their accounts.