The rapidly weakening kina, deficit spending and the financing of government debt is piling pressure on the Papua New Guinea government to boost economic confidence. Economist Dr Mark Evans considers some of the issues facing both government and business. The depreciating kina, with its potential impact on inflation, official foreign exchange reserves and investor confidence, is the biggest challenge to face the Bank of Papua New Guinea in recent years. The depreciation was predicted to

INTEROIL has announced the sale of its Papua New Guinea oil refinery and petroleum products distribution businesses to Singapore-based Puma Energy for $US525.6 million. The deal includes adjustments for cash and working capital and is intended to allow InterOil to focus on its higher-returning upstream and LNG business. InterOil’s downstream businesses include the Napa Napa refinery in Port Moresby that processes about 28,000 barrels a day as well as 52 retail service stations, 30 fuel

MINIMUM WAGE In today’s newspaper, and over the last few weeks there have been many reports that the NEC has approved an increase in the Minimum Wage from K2.29 to K3.20 per hour. The PNG Chamber of Commerce has not been formally informed of the Government’s decision nor has it been able to confirm this announcement. Thomas Abe the new CEO of the PNGCCI said in a message to me yesterday said – “I fronted

The signing of the first major backer for a new Papua New Guinea television drama series paves the way to develop a local TV production industry, according to the show’s producers. This week, telecommunications company Telikom PNG entered a sponsorship deal to part-underwrite the first series of the show, Central Giants. Central Giants tells the story of an ethnically diverse, Port Moresby-based rugby league team fighting their way through a competition season, in spite of

NADZAB DEVELOPMENTS We are looking forward to receiving an application for membership from the National Airports Corporation (NAC) to join the Lae Chamber of Commerce. We believe this will improve the two ways communication between our organizations, and this will be beneficial to the development taking place at Nadzab. Two weeks ago I reported a successful discussion with Mr Joe Tupiri the NAC Managing Director who is happy to partner the LCCI to push the

More than 300 government and business leaders came together in London this week to press for stronger intellectual property (IP) enforcement measures in Europe and worldwide. The International IP Enforcement Summit was hosted by the United Kingdom IP Organization, European Commission, the Office for Harmonization in the Internal Market and the EU Observatory on Infringements of IP. “The support and involvement of the leaders of these key government organizations is a clear demonstration that enforcement

The Pacific’s increasing integration with Asia, elections in Fiji and more leadership from Papua New Guinea are just some of the factors likely to shape the region over the coming year, according to the region’s three top bankers. In exclusive interviews with all three, Business Advantage PNG canvasses their thoughts on the year ahead. ‘There’s no doubt Australia and New Zealand will continue to be a dominant trading partner for the Pacific countries, but China

Shorncliffe Update: Cassowary Rd: (See newsletter for an updated TMP) Huon to Cassowary junction access is limited to Resident. Line Drain, Kerbing Pavement Preparation Continues between Wagtail and Huon Road. Pavement Concrete Continues between Wagtail Street and Finch Street. Temporary access roads are provided near Wagtail Street. Mangola Street: (See newsletter for an updated TMP) On Rabtrad side( One Side only). Concrete Pavement in progress. Starting June 14, we will block the section between Marsina

The Bank of Papua New Guinea’s move to strengthen the value of the Papua New Guinea kina against the US dollar has taken business by surprise, with some business leaders saying it will impact on primary industry producers. Key business leaders say that while importers will benefit, the Bank of Papua New Guinea’s move to restrict commercial transactions of the kina to between $US0.405 and US$0.4200, significantly higher than recent valuations, will adversely affect exporters.