PNG makes slight improvement in World Bank business ranking

PAPUA New Guinea has had a slight improvement in its 2019 score in the ease of doing business standing from 59.4 to 59.8, according to the World Bank.
Responding to questions from The National about its “Doing Business 2020” report, it said the slight improvement this year showed that PNG was committed to climb in the rankings.
PNG’s improvement was attributed to the country implementing a number of positive reforms in 2018 and 2019 to improve its business regulatory framework that positively impacted its score.
“The country made paying taxes less costly by abolishing the training levy and by issuing value-added tax refunds more quickly, due to more streamlined audits,” it said.
“Trading across borders was also made easier by implementing an automated customs data management system. It is now important to put together a coherent programme of reform to simplify and streamline business regulation and act on it.
“This can be done by making some further relatively simple reforms which are low-cost to nurture the business environment in the country.
“PNG can look to countries such as Rwanda that have jumped substantially in the rankings by having an organised programme of regulatory reform.”
The Investment Promotion Authority (IPA) took a good first step by holding its Regulators Summit in September this year, it said.
Speaking specifically about its “Doing Business 2020” report which saw PNG drop in the rankings from 108 to 120 out of 190 countries, the World Bank said the report coversed 12 areas of business regulation.
“Ten of these areas include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
“These are included in the ease of doing business score and ease of doing business ranking.
“Doing Business also measures regulation on employing workers and contracting with the government, which are not included in the ease of doing business score.”