Papua New Guinea Government Fails to Achieve Economic Stability, says Deputy Opposition Leader
The Papua New Guinea Government has not succeeded in promoting economic growth, high employment, or price stability, according to Deputy Opposition Leader James Nomane.
Responding to Prime Minister James Marape's recent economic outlook update, Nomane, who is also the Shadow Minister for Treasury, Finance, Economy, and Rural Development, stated that the numbers over the past five years reveal the true picture. "The Kina devaluation is eroding our currency’s purchasing power. K100 no longer buys the same amount of food it did in 2019. This devaluation is further driving up inflation and increasing socio-economic pressures," he said.
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| Deputy Opposition Leader James Nomane |
Nomane also pointed to the rising cost of imported goods, which he claims has become unaffordable, coupled with a loss of confidence among foreign investors. He cited the recent 2024 Business Advantage Papua New Guinea Investment Conference and Expo in Brisbane as evidence, noting that no foreign entities attended the event despite a video call made by Prime Minister Marape. According to Nomane, this lack of interest is why the PNG Liquefied Natural Gas project in Gulf Province will not proceed under the current administration.
Nomane further criticized the Papua New Guinea Government's borrowing practices, highlighting the K34 billion borrowed over five years to fund the "Con-act" PNG programme. He questioned the lack of visible economic growth in districts and provinces despite this historic borrowing. "Interfering with the central bank is weakening public institutions, and it is killing the country. Inflation, along with other socio-economic indicators, will only worsen as we borrow and print more money. Things will get tougher for our people under these circumstances," Nomane warned.
The Deputy Opposition Leader pointed out key economic indicators reflecting the Government's performance, including the low exchange rate (K1 = 0.19 USD), a debt-to-GDP ratio exceeding 52 percent, and high inflation. This contrasts sharply with Prime Minister Marape's assertion that the economy is showing significant improvement, driven by stronger growth, low and stable inflation, and a substantial easing of foreign exchange shortages.
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