PNG Business Sector Faces Hurdles as Only K50 Million of K385 Million Relief Paid
As of December 31, 2024, only K50 million out of the promised K385 million in initial relief funds has been disbursed to businesses affected by the January 10 civil unrest, according to the PNG Chamber of Commerce and Industry (PNG CCI). Chamber President Ian Tarutia revealed that total claims for wage losses, debris removal, and rebuilding amounted to an estimated K785 million.
Speaking during a recent press briefing, Tarutia acknowledged the slow pace of relief fund distribution, saying, "The Government’s relief assistance package was welcomed, but its dispensation of funds has been slow." He also noted that the 2025 National Budget lacks a specific allocation for continuing the relief efforts. However, the Business Coalition has been assured that the assistance is accounted for elsewhere in the budget.
Highlighting key challenges faced by businesses throughout 2024, Tarutia identified five major issues reported by provincial chambers: unreliable power supply, inflation, law and order concerns, foreign exchange accessibility, and domestic air travel difficulties. These issues, he stated, have collectively increased operational costs, hindered growth opportunities, and dampened economic confidence.
Despite the challenges, Tarutia pointed to positive developments in the business sector, including the licensing of new banks—Credit Bank, Tisa Bank, and the State-owned National Banking Corporation—by the Bank of PNG. Additionally, he welcomed the Government's announcement at the Sydney Investment Conference regarding a Public-Private Partnership (PPP) arrangement for PNG Power, aimed at improving the reliability of the nation's power supply.
Reflecting on the country’s progress as it prepares to celebrate its 50th year of independence in 2025, Tarutia emphasized the need for strong leadership and effective governance to address persistent development challenges. "Good governance across our many public institutions is lacking, and the people pay the price for ineffective delivery of services. Strong, decisive leadership is critical at this juncture of our country’s history," he said.
Looking ahead, Tarutia reaffirmed the PNGCCI’s commitment to engaging with stakeholders such as USAID, the World Bank, and the Asian Development Bank to foster private sector growth aligned with the Government’s Medium Term Development Plan IV (MTDP IV). He urged political leaders to make decisions that prioritize the nation’s collective development over individual gains, reiterating the Chamber's dedication to working collaboratively to advance PNG's economic and social goals.
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