Economy going backwards

THE country’s economic management by the Government on the back of its slogan “Take back PNG” is a disaster and will take a long time for the country to recover.
The effects of the Covid-19 is putting more stress on the economy.
This Government is solely to be blamed because its slogan and implementation have really taken PNG backwards.
The country already had major approved projects on the line for implementation when this Government, under Prime Minister James Marape, took over two years ago.
It would have been helpful for us, despite the effects of the Covid-19, if the projects were implemented without delay.
Two resource projects (Papua LNG and Wafi-Golpu) with billions invested, would have helped Papua New Guinea at this time when we need revenue.
These two projects were approved by the previous government in 2018.
These projects would have employed more than 15,000 people by now.
They would have helped increase local business activities and tax revenue.
However, after two years of the unnecessary delay by this Government, Papua LNG was downsized to two trains while the Wafi-Golpu mine project still has unaddressed mine waste disposal issues.
The Morobe government is looking forward to deal that is better than the new Porgera mine deal.
Most likely, construction for both projects will take some time to materialise.
On the other hand, the abrupt shutdown of Porgera mine led to increased unemployment, local contractors going out of business and a decrease in State revenue.
It is understandable that the Government wanted to arrange something similar to Ok Tedi mine where it owns 100 per cent of the revenue, but the timing was not right.
The Government will now opt for a lesser deal (51/49). The benefits of the new Porgera deal will not be realised until after 10 years.
Several shutdowns of Ok Tedi mine due to the Covid-19 is also not helping the Government.
This will see a significant reduction in revenue.
The much-talked-about small to medium enterprise (SME) investments cannot revive the economy because there is no solid customer base at this time.
And that is because of the high unemployment rate in the country.
It is in every citizen’s heart to enjoy benefits of our resources.
However, the approach we take to achieve this must be carefully thought through and timed well to minimise any negative issues such as the ones we are facing at the moment.
Therefore, Papua New Guinea desperately needs a government that is visionary with foresight to lead us well in such times.

Tore Kila,
NCD