PNGBLOGS

by BIRE KIMISOPA MP The economic malaise created by the government is constricting the private sector to the point that it is now sponsoring the gradual destruction of the private sector in Papua New Guinea. Company profits are shrinking, an increase in retrenchment and job losses, a general fall in valuations on businesses, rising cost on consumables as a consequence of the falling kina, and a soaring debt burden where the government is hoping would be paid off by some innocuous tax measure such as the controversial residential accommodation tax. The Central Bank is equally to be blamed for the demise of the private sector given the fiscal failings of this government.  The central bank monetary interventions have exacerbated the pain inflicted on the private sector through the rationing of the foreign currency where it is the sole arbiter between winners and losers in the supply of foreign currency in Papua New Guinea. The managed float of the PNG kina has no end in