K490mil for PNG

By NATHAN WOTI
THE International Monetary Fund (IMF) will allow a further disbursement of US$127 million (about K492 million) in financing, bringing its total financial support under the current arrangements to US$303 million (K1.2 billion).
This follows the visit by a team from the IMF led by Tahsin Saadi Sedik to Port Moresby from April 25 to May 8.
The team reviewed the progress under the home-grown economic reforms supported by the IMF Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements of US$918 million (about K3.6 billion).
Sedik said IMF staff and the PNG authorities had reached a staff-level agreement on the policies needed to complete the second reviews of the ECF and EFF arrangements subject to approval by the Executive Board of the IMF.
“Papua New Guinea’s economic outlook remains positive,” he said.
“Growth is expected to increase in 2024 to 4.6 per cent from 2.9 per cent in 2023, supported by the resumption of activities at the Porgera gold mine and by favourable commodity prices. High-frequency economic indicators point to a limited macroeconomic impact of the January 2024 social unrest.
“Inflation is expected to normalise towards its historical average of around five per cent. Gross international reserves stood comfortably at US$3.9 billion (about K15 billion) at end of 2023, or at least for six and half months of total imports, providing space to continue implementing central banking reforms,” Sedik said.
He added that performance under the Fund-supported programmes has been satisfactory.
“The Government is making strides in implementing its structural reform agenda, focused on advancing budget repair, modernising central banking, and improving governance,” Sedik said.
“All quantitative performance criteria and indicative targets set for December 2023 were met.
“Most structural benchmarks due by end-March 2024 were implemented.
The authorities’ commitment to reform is starting to bear fruit, with notable positive outcomes, including lower fiscal deficit, which will strengthen public debt sustainability,” he added.