Learn from experience

THE Government should table the policy condition and term sheet of the IMF loan for public scrutiny.
Lives have been lost in the past on land reforms and removal of reserve business list among other policy prescriptions to reduce tariffs and open flood gates for importation of foreign manufactured goods.
Thus, resulting in depletion of foreign exchange and entrapment of the country in vicious cycle of debt trap and poverty.
Those countries who subscribe loan fund contribution to IMF are given the first call to set their conditions on a loan sheet for a country seeking loan to their strategic interest.
There is no secret about that anymore.
For PNG, it is the big trading partners such as Australia, Japan, USA and New Zealand would prescribe their space in business and trade to the detriment of the populace and SMEs of this country.
PNG has been bitten many times since the famous 1990 structural adjustment but is still not shy at all.
Why? All cash in the system has dried up due to deficits and no roller over provision to stablise government expenditure at closure of accounts every year.
There is no propensity to save and have surpluses in the Government accounting system.
How can PNG create wealth through savings and the so-called sovereign fund? This is just a dream.
It is time PNG demands unconditional soft loan from IMF due to past experiences.

Observer NCD