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By Staff Reporter : PNG Today

NRI advises government to borrow more for investment to grow the Economy

The National Research Institute has announced that the government must borrow concessional loans to boost the Country’s Exports following the current Cash Flow and Foreign Reserves Crisis the country is facing.
The loans must be specified in the investment of infrastructural developments of roads and bridges and others to thus bringing down the current 30% debt GDP.

It was also revealed that private sector businesses are already feeling the pinch of the Cash Flow and Foreign Reserves Crisis and the government must borrow to stabilise this economic situation.
NRI Director Dr Charles Yala said the borrowing will boost Exports but the lack of Foreign Reserves will still remain a problem because the concessional loans are only a short term solution to the Crisis.

He said the Highlands Highway must be fixed during this time to allow for this year’s coffee season to be exported to overseas markets.
Dr Yala says the Highway can be funded concessional loans borrowed.
“These will increase coffee exports and generate income for small holders thus boosting exports to reduce the 30% Debt GDP”, he said.

The National Research Institute made this call following a second study by Professor Satish Chand, a Research Associate of NRI in University of NSW, Australia which focuses on PNG’s shortages in cash flow and the country’s falling foreign exchange and the first study which looks at the budget assumptions for the 2016 Fiscal Year using a computable General Equilibrium Framework will soon be released to the public by direct upload onto the Institute’s website. PNGFM/ PNG Today

Posted by Staff Reporter : PNG Today on 4:51 AM. Filed under , . You can follow any responses to this entry through the RSS 2.0. Share this Article

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