Fox : PNG Economy still attractive

An economic expert says, measures taken by the Government in tightening its spending and introducing taxes on the back drop of its 12-point-9 billion Kina National Budget, may still look appealing to investors.

Rohan Fox who's coordinating an Australia National University and University of Papua New Guinea partnership, at the School of Business and Public Policy, says investors may still be attracted to PNG, despite the current economic situation.

Mr. Fox had questioned the Government's maintaining of the Provincial and District Services Improvement Program Funds, despite substantial cuts in priority areas of health, education, law and order and transport.

But he says tax measures to address revenue inflows will look to balance off what's been cut.
Mr. Fox also says while the 7-percent increased inflation may be a concern with an immediate impact on prices of goods and services, it is so because of the falling value of the Kina which the Central Bank is trying to balance off.
But Mr. Fox says investors may not be turned off with PNG's economic situation. NBC/PNG Today