New deadline eyed for Sovereign fund board

A BOARD and secretariat for the PNG Sovereign Wealth Fund (SWF) will be established next year, says a report by Treasury.
The board, which was to have been established earlier this year, will oversee the offshore investments in the SWF.
The SWF was formed in 2015 to manage external shocks to the economy. All mining and petroleum taxes from then on were to have been deposited into the SWF and be available to be drawn down into the Budget to fund government expenditures.
The SWF comprises of two funds: the Stabilisation Fund and the Savings Fund. Tax revenues received from mining and petroleum projects, including the PNG LNG project, will be directed to the Stabilisation Fund. When revenue flows are large, the excess will be deposited into the Savings Fund.
The World Bank has agreed to help the Bank of PNG and Treasury set up the secretariat.
In the interim, all mineral and petroleum dividends are being directed to the national Budget until the SWF is in place next year, said Treasury.