Experts say Papua New Guinea facing hard Economic times

Papua New Guinea is facing a difficult economic time with a growing demand on public funds.

The Institute of National Affairs’ Executive Director, Paul Barker, is blaming what he says is the Government's failure to prune the widely wasteful and poorly managed district grants.

He adds that some resource projects, including the logging companies who don’t pay taxes by claiming not to make a profit, are heavily investing in extensive real estate and other business activities.

Meantime, Rohan Fox, a Lecturer in Economics at the University of Papua New Guinea, says an analysis of the kina exchange rate suggests that if the current depreciation trend of 14.6 per cent per annum continues, the exchange rate would be 0.2788 this time next year.

This would be a rate not seen since 2003.

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