PNG still a difficult business

Business, Main Stories

PAPUA New Guinea is still a difficult place to do business.
This is according to the eighth annual International Finance Corp (IFC) and World Bank report on Doing Business 2011: making a difference for entrepreneurs, launched yesterday.
The study has placed PNG in the cellar at slot no. 103 out of the 183 countries whose investment climate had been analysed by the institution.
Countries in the upper ranks from slot no. 1 down to no. 10 are considered the best places for investment.
However, for last year, PNG moved up five notches from slot no. 108.
The country’s impro-vement in its ranking was attributed to the creation of a credit facility which has assisted lenders assessing credit worthiness of borrowers, according to IFC outgoing country coordinator Peter Cusack.
He said this was important because it was an example of the private sector taking action to improve the overall business environment in PNG.
By comparing 183 countries, the Doing Business analyses regulations that apply to an economy’s businesses during their life cycle.
It focuses on local businesses and firms in capital cities of each country, following nine universal indicators whose overall performance results in the rankings.
Some of the indicators included looking at the time and cost it takes to register new businesses, register property, enforce a contract, get credit, obtain a construction permit and look at export-import processes.
Cusack said though PNG still had a long way to go, it could do well by following examples of other Pacific Island countries such as Vanuatu which ranks 60.