Resource benefits a challenge: Pruaitch

 AN improved natural resources governance with transparency and accountability is the key to translating PNG’s rich natural resource to the wellbeing of the people, Treasurer Patrick Pruaitch says. 

He said this in his speech at the recent Extractive Industries Transparency Initiative (EITI) global conference in Lima, Peru.

Pruaitch delivered the speech as PNG-EITI multi-stakeholder group chairman where PNG is a candidate of EITI.

“Enhanced social and economic impacts can, and should, flow from improved natural resource governance, accountability and transparency,” he said.

Pruaitch said PNG faced challenge of converting its resources wealth, which contributes some 80 per cent of export revenues, into improved living standards of the people. 

“PNG is among the world’s top 20 producers of copper and gold and produces silver, nickel and cobalt. Since mid-2014 we have been exporting liquefied natural gas” he said.

“From presentations and awards made at this conference, I can see that transparent accounting of revenues from the resources sector enhances the prospects for improved management of revenue flows to address the nation’s development priorities.”

Pruaitch said PNG institutions provide clarity on revenue flows from the resource sector to help budgetary efforts to equalise expenditure flows to LLGs.

“These measures will now gain a significant level of transparency through the EITI process,” he said. 

“Transparency created by the EITI process will pave the way for improved use of revenues with government institutions becoming more accountable.

“PNG’s first EITI report contains key recommendations for the Government to consider and a range of reforms that would create benefits.”