Papua New Guineans urged to brace for tougher Economic challenges ahead

PORT MORESBY: Opposition Leader Don Pomb Polye has urged fellow citizens to brace themselves for tougher economic challenges ahead over the next twelve months and beyond.

Refuting claims by the Prime Minister Peter O’Neill that the country’s economy was safe and sound, Mr Polye made the warning call in light of the country’s debt level at over K27 billion.

“Our debt level now is well over K27 billion and it is not going to stop as it will be building up onto the existing loans due to the country’s preparation for APEC meeting and other international events.

“The total value of our economy is only K41 billion but it is appalling to note that our Debt to GDP ratio is over 60 per cent when it is calculated,” a concerned Polye said.

He said if it was not addressed, the country was going down the paths of Greece and other countries in the world.

“The Prime Minister has only been saying the economy was in safe and capable hands but he failed to explain on how it was safe and sound.

“The Prime Minister does not have any strategy to bail the country out from its economic dilemma but he is only good at spending after spending, getting loans after loans and selling sovereign bond after sovereign bond,” he said.

Polye added that the government knew it very well that it was not managing the country’s economy well.

“I am warning our people to brace for much tougher economic problems over the next twelve months and beyond as the Prime Minister has been reluctant to admit the truth about the economy.

“PNG’s economy is set to take a nose-dive if the Prime Minister fails to devise any fiscal strategy intervention,” said Mr Polye.

And that he called on the people to tilt the land to sustain their livelihood and cut down on ‘unnecessary spendings.’

Polye said the country’s revenue streams have dropped due to the downturn in commodity prices.

“2016 Budget will not be materialized as it is a paper budget as its figures do not reconcile with each other.

“The country is undergoing recession. I am seeing the government will struggle to subsidize its health and education so I am urging fellow parents and guardians to save money for their children’s school fees,” said Polye.

Meanwhile, the Opposition Leader has urged the Independent Consumer and Competition Commission to control the rise in prices of goods and services in the country.