Treasury Dept banking on Porgera push

By NATHAN WOTI
THE Treasury Department expects domestic economic growth rate in 2024 to be 5.3 per cent, supported by the reopening of the Porgera mine in the second quarter.
However, inflation will grow by 3.5 per cent from last year and increase to 5 per cent in the next 12 months.
The value of the Kina on the other hand has depreciated against US dollar by 0.27 per cent, but appreciate against the Australian dollar by 0.42 per cent.
According to the Internal Revenue Commission (IRC), tax revenue will fall by K300 million this year due to the closure of shops such as City Pharmacy Limited.
Department of Treasury acting deputy secretary policy, Donald Hehona, said 71 business were affected by the Jan 10 civil unrest which severely impacted the economy.
The main impact is the drop in tax revenue which had a ripple effect on the growth rate and inflation rate.
“The event of (Jan 10) impacted the forecast of the economy,” he said.
“As we speak, 71 shops and super markets are closed or struggling to find their way back from the loss.
“IRC has informed us that 35 of those businesses are tax compliant, which means that they pay their taxes. So we will see a fall of about K300 million in tax revenue this year.
“The other 36 are non-compliant, so we encourage any interested investors or business to help (the government) help you by paying your taxes.”
He added that despite the negative impact of the Jan 10 event, the Government was focused on achieving its target set out in the Medium Term Development Plan Four with the backing of the resource sector, especially the reopening of Porgera and Papua LNG.
Hehona said the early resumption of the Porgera mine would support economic growth, while the early construction phase of Papua LNG project would create jobs, minimise unemployment and invigorate the economy.