PNGBLOGS

by  IVAN KEAS CPA Introduction PNG is a growing economy in market and business and it’s not limited in its investment capacity. It is open and wide that can efficiently allocate and distribute investment resource within its system. The West Minister Government and the Indigenous values have resembled this attributable development trait that complements the structure to adapt well with relative ease and it’s been appreciated as an integrated enabling cross-cutting culture that posses commercial and economic respect. The values have held the tenets of our democracy and loyalty to our heritage that affirms Human to be a distinguishable creature. We hold this truth as it stood the test of time in our Constitution. Papua New Guineas do not have any problem with its People, System, and Economy. She is young, cute, virgin, wealthy, rich, energetic, adventurous and attractive because of its beauty and its people. Notably, PNG Economy is an interdependent economy and majorly generates

by PAUL FLANAGAN Following are three key questions which potential investors should be seeking answers for at the PNG Investment Conference being held in Sydney on 7 and 8 September. First, what are my peers doing? While a good business investor will be open to finding a niche market with great potential, it is relevant to know what their investment peers are doing. There was a rather disingenuous Bloomberg article last week titled “Australia Would Rather Invest in Papua New Guinea Than in China” – see here. A more comprehensive set of figures, based on total Australian investment in these countries is shown in the graph below.   [Source: Australian Bureau of Statistics Catalogue 5320 Table 5 issued 10 May 2017.] Three key elements.  First, one should consider more than just direct investment.  This dominates the PNG picture but is a much, much smaller element than in China where investment options are much more diversified. Second, investments in Hong Kong are also rele

by PAUL FLANAGAN PNG’s new Treasurer and DPM, Charles Abel, has released the promised 100 Day Economic Stimulus Plan (see  here ). Overall, there are some positives in the plan. But politics is already circumscribing necessary actions to get PNG back onto the right economic path. Starting with the positives, even having a 25 point plan is a useful statement that the new government recognises PNG’s economic challenges. The five elements of the plan are appropriate. There is a focus on raising revenues as well as fiscal discipline. Population policy is given priority.  The plan announces the suspension and review of some scary micro-economic policies in areas such as land, agriculture, bio-security and mining. Some politically brave action is foreshadowed to at least temporarily reduce politicians’ discretionary electorate spending (PSIPs and DSIPs). There seems a commitment to on-going sensible strategic budgetary and planning processes. There is no mention of the absurd “gold bu

by CYRIL GARE One of the greatest challenges for our new first time politicians is to acquaint themselves with and understand the country’s foreign policy among others. It is even challenging for a first-time Minister. In many democracies in the world, a first-time politician does not become a Minister immediately. The reason is obvious. He or she must first understudy and learn the trade skills of the game before taking on a ministerial responsibility in Government. Last week, we boasted about the launch of PNG’s first ever National Trade Policy (NTP). In time, many Papua New Guineans including myself will be able to read and understand the NTP from an available copy. For now, let’s just deduce from information provided in media reports that the NTP now “gives an upper hand to negotiate trade with its partners”. In essence, trade involves supply and demand; i) we supply others with what they do not have, and ii) in reciprocate buy from them what we do not have such as medicine an

by MELL LAKA The Attorney General is empowered to brief private lawyers/counsel to act for the State. This occurs when there is need for particular expertise or the Attorney General is unable to undertake the work itself. From Finance Department records a Commission of enquiry found that over the period 2000 to 2006 the State incurred liability in payouts of approximately K100 million in legal fees. The Inquiry saw that there has been no compliance with the Public Finances (Management) Act procedures of expenditure for approval prior to engaging in those brief outs. A  Commission of enquiry after making extensive examination of these payments with ready assistance from all the law firms concerned except Paul Paraka Lawyers which has been the recipient of at least the K41 million in brief out fees for January 2003 to August 2006 noted in NEC records.  Let me illustrate what I mean by excessive legal fee with our so called Chief Secretary of the National Government, Mr. Isaac Lupari

by DR JAMES NAIPAO , National Doctors Association President The '100 DAYS RECOVERY PLAN' announced by the O'Neill-Abel Government in the 10th Parliament must not include increases in the INCOME TAX. This is an absolute NO. Income Tax in PNG is paid by a small working population in the Public and Private Sector, respectively. The majority of the 8-10 million PNGeans do not pay the income tax. Why crucifying the minority. Any VAT/GST increases will also further burdenise the workers and eat into their purse. This too is an ABSOLUTE NO if the O'Neill-Abel Government plans on hiking it. These two economic recovery plans if the current government is planning on taking them on board should be shelved because there will be an 'all out fall out with reproaching consequences'. The continuous blame on the global down turn of the economy may be the reason but to excessively borrow with the knowledge of the global effect is unfounded. There should be a shift