PNG Economy in good shape, says Marape

The PNG Government has assured the people, the business community and the nation that the PNG economy is strong and there is no need for panic despite the global effect of commodity and mineral prices.

Finance Minister James Marape said yesterday that there was sufficient foreign exchange reserves of more than K6 billion to cover at least eight months of non-mineral import and overall 4.6 months cover.

"The economy of the country is strong, there is sufficient liquidity in the financial sector, the Government has funds for commitments, we have paid all our development funds and bills as detailed in the 2014 budget and the supplementary budget," Mr Marape said.

He said there was no need for a budget review in response to what he called nonsensical claims by Opposition Leader Don Polye that the Government had run out of cash with no money in the system.

"We have met our contractual obligations, we have fully paid our educational and health commitments, we have honoured our provincial, district and LLG commitments, our domestic and foreign debts have been serviced as budgeted for and our public service wage bill of K85 million every fortnight continues to be paid on time," he said.

He said the 2014 Budget had been expanded by 96 per cent as per the money plan and the remaining 4 per cent was classified as deferred expenditures.

"These are clear facts that Mr Polye does not want people to know as it discounts all of his lies. The Leader of the Opposition is mandated to tell the truth and he should honour this obligation."

He said despite the global effect of commodity and mineral price, the nation’s strong reserve in the central bank continued to provide confidence to businesses and investors in the country.

"The foreign reserve figures are not much different now from when Mr Polye presided over the economy as Treasury Minister."