Non-mineral sector needs a push: Bakani

 BANK of Papua New Guinea Governor Loi Bakani says there needs to be more emphasis by the Government on the non-mineral sector for economic growth.

Bakani said inclusive policies and direct investment in the sector was critical as it would reduce the dependence on the mineral sector, allowing it to withstand adverse shocks such as falling mineral prices.

“Reducing the costs of utility services, addressing law and order concerns, improving physical infrastructure and streamlining Government regulations and policies and its delivery mechanisms would assist in developing these sectors,” Bakani said in the bank’s September monetary policy statement.

“Agriculture, fisheries and forestry sector, tourism, manufacturing, and small-to-medium enterprises (SMEs) demand greater attention as they can broaden the economy, reduce reliance on imported food and create employment opportunities for the majority of the population.

“Serious investment in these sectors can also reduce the economy’s dependence on the mineral sector, increasing its resilience to adverse shocks, such as falling mineral prices or unexpected adverse weather conditions.

“Commercial banks and other non-banking lending institutions should place some emphasis on lending to this sector.”

“These will also diversify the country’s exports and expand the Governments revenue base.”

Bakani said the Government should encourage increased competition in strategically important industries such as manufacturing of food and refined petroleum products, telecommunications and utilities in order to reduce monopoly type business.