Investment concerns
The National, Wednesday May 27th, 2015
By ERIC BALARIA
AN Australian economist says Papua New Guinea faces challenges in attracting foreign direct investments into the country.
Deloitte Access Economy partner Stephen Smith said foreign investment was critical in developing a sustainable economy for PNG but there were still problems faced in making the country an attractive investment destination. Deloitte Access Economy is an economic consulting firm in Australia.
Speaking at a business breakfast in Port Moresby yesterday, Smith said some of the challenges include PNG’s budget position, weak commodity prices and the exchange rate.
“There are some macro challenges in driving and attracting foreign direct investment to PNG into the future,” he said.
“Foreign direct investment is vital for driving employment opportunities, creating platform for economic growth and creating support and driver for economic opportunities for Papua New Guineans.
“It is critical that foreign direct investments continue to flow in PNG.
“PNG LNG is a great achievement that would provide some important dividends for PNG going forward.
“But it’s important to diversify, we can’t be reliant only on the resources sector and we can’t be reliant on a single project.”
Smith said statistics by the Frasier Institute showed there was still room for improvement in PNG in attracting foreign investment.