Weak Kina will affect us: NBPOL

By PETER ESILA
PAPUA New Guinea must be wary of a weak Kina against the US Dollar that can have both positive and negative impacts on the economy, according to the biggest private sector employer New Britain Palm Oil Limited (NBPOL).
Country manager Robert Nilkare said the oil palm industry in PNG continued to play a crucial role in driving socio-economic development and uplifting communities.
With NBPOL currently employing more than 24,000 people, Nilkare said the agricultural sector was the backbone of the PNG economy.
He said the overall, the impact of a weak Kina against the US Dollar on the economy would depend on the reliance on imports and exports, the structure of the national economy and how well it could manage the potential challenges that came with currency depreciation.
“PNG needs to develop and grow its domestic economy to sustain itself with food security and downstream processing of our major commodities,” Nilkare said.
“We have significant commercial agriculture potential due to our favourable climate, fertile soil, and diverse range of crops. With the right government policies, investments, and support, the country can further develop its agriculture sector and become a more significant player in the global agricultural market.”
Nilkare, who is also chairman of the Palm Oil Producers Association, said the oil palm industry stood as a key pillar of the country’s economy.
“Its significant contributions to employment, foreign exchange earnings, infrastructure development, and poverty alleviation, the same can be said for coffee, cocoa and copra.
“The industry provides employment opportunities for thousands of individuals, both directly and indirectly. From smallholder farmers to plantation workers, the sector offers livelihoods that support families and communities. The industry’s workforce receives training, skills development, and fair wages, contributing to improved standards of living.
“The industry is a major exporter, generating substantial foreign exchange earnings for the country. These earnings play a vital role in supporting the economy, funding essential imports, and stabilising the currency. The industry’s export revenues contribute to national development and growth, benefiting various sectors of the economy,” he said.