Protect economic security: Exec

By DALE LUMA
THE Government should put in place economic security measures to protect the national economy from the impact of the coronavirus (covid-19), an economist says.
Institute of National Affairs executive director Paul Barker said PNG was already feeling the effects of the virus on the world market, with some export commodities facing low prices and demand.
Barker said even though the virus had not been found in PNG, it would eventually slip into the country by some means.
“PNG needs to be ready for natural and economic challenges, and build up its resilience now and in future,” he said. “Economic activity and growth, commodity prices and stock market prices have all been dragged down in recent weeks.
“This has all affected PNG, with lower demand and prices for some of its export products from oil and gas, to some agricultural products.
“The Government itself will face extra-expenditure requirements.
“This will include for health services and while revenue, which was already tight, will take a further hit from the constrained economic activity and various lower commodity prices.
“To avoid or minimise further increased debt, prioritisation of expenditure will be necessary, removing unnecessary or less needed activities. It might perhaps consider deferring other events or activities where possible, while securing funding and revenue from the international community, including the newly announced World Bank funding facility.”
Barker said advanced revenue foreign exchange from willing businesses would also be valued.