Diversifying economy vital: Economist

THE World Bank says the government’s recognition of the importance of diversifying the economy is important.
Country economist Ilyas Sarsenov said last October, the Government adopted a new five-year medium-term development plan (2018–22) focusing on inclusive and sustainable growth.
Last November, the Government announced the 2019 national budget with a focus on supporting the implementation of the plan and building a broader-based economy.
The government successfully tapped the international bond market to address the foreign exchange shortage and finance its new development vision.
Sarsenov highlighted this last week following the release of World Bank’s East Asia and Pacific Economic Update report.
“Following a roadshow to promote its debut sovereign bond, PNG raised a 10-year US$500 million (K1.68bil) sovereign bond (which was oversubscribed by seven times) in September 2018.
“Due to high demand, the bond interest rate was set at 8.375 per cent, closer to the lower bound of a targeted range.
“Ongoing reforms to strengthen the monetary and exchange rate policy and frame-work are expected to improve business confidence and increase private investment and growth in the non-resource economy.”