There is no Economics crisis in PNG, says Prime Minister O'Neill

Following the release of the MID YEAR ECONOMIC AND FISCAL OUTLOOK REPORT by Treasury and the various economic opinions in relation to Government spending and revenue, the Papua New Guinea Prime Minister Peter O'Neill  has today reiterated that PNG is not facing an economic crises, like experts have stated.

Treasurer, Patrick Pruaitch in a statement this week, that The Government has announced that, cognizant of fiscal realities, it has and will continue to review its position including handing down an Appropriations Reduction Bill in 2015.

The Treasurer further stated that the priority areas of education, health, law and order and the Provincial and District Support Grants however, will not be revisited.

“ There have also been drops in other commodity prices, including gold and copper, as well as a decrease in taxes collected, “ said Mr. Pruaitch.

Prime Minister, Peter O’NEILL, said no academic can explain to us, what many would have known that PNG’s situation is due to global drop in the price for GOLD, COPPER, OIL and even LNG, which simply means it affects not only Government, but also associated businesses in the country.

“ They all have to cut cost, so that they can maintain their businesses and this is an event that is taking place around the world and not just Papua New Guinea, “ he added.

He added that as a concerned Government it is our responsibility to maintain stability in the accounts so that the economy continues to grow.

“ That is why Government, almost on a weekly basis, managing the cash flow so that we can be able to pay all our obligations, “ he stressed.

The Prime Minister said he is also aware that due to these measures, many oil and gas companies will need to cut cost, by reducing the number of staff and expenditure.

“ The last thing we want to do is force Papua New Guineans into unemployment and the Government wants to ensure that we put food on the table, “ he added.

He added that PNG is not in a crises like other countries like GREECE, because our borrowings are not of the same level as our borrowings are still below 50% of GDP.

“ Everybody is getting paid, hospital services are still running, construction is continuing and the economy is still growing and we do not need to introduce a mini budget, because it will not solve any of these problems, as it is not a PNG PROBLEM, but a GLOBAL ONE, “ he added.

PNGFM/PNG Today