Government expecting K2.5 billion in December

TREASURER Ian Ling-Stuckey says about K2.5 billion in international financing is expected to reach the public coffers in December.
He told Parliament yesterday that “we are facing a major cash management challenge of cash arriving late but having to continue paying for our health, education and justice systems”.
Ling-Stuckey said the two-stage solution the Government proposed were to review and modernise the Central Banking Act
He also noted that this year the Government had to pay nearly K900 million to Credit Suisse for a loan.
He said the mining industry was expected to dip by roughly K2.2 billion this year.
He attributed this to the closure of the Porgera gold mine in Enga for eight months which would mean a K1.4 billion effect on the Gross Domestic Product (GDP) in the 2020 financial year.
“We had hope the previous (Porgera) mine operators would have continued operations under new contract conditions but they refused,” he said.
He also mentioned the temporary closure of the Ok Tedi mine for six weeks because of the Covid-19 infections and a drop in Lihir gold production for geological reasons of K117 million.
Ling Stuckey pointed out that combined effects of global and domestic Covid-19 impacts also affected the non- resource parts of the country’s economy.
“Agriculture GDP is down by over K1 billion. Tourism, accommodation and transport industries have suffered from the closure of the internal borders, this sector is down an estimated K0.85 billion.”
Parliament rose at 7pm last night and adjourned to Nov 10.