The Papua New Guinea economy faces a conundrum: how to finance deficit spending as cheaply as possible. ANZ analysts suggest a global bond issue as a solution. At the same time, ANZ CEO Mike Smith urges a national discussion about how to capitalise on the Asian Century. ‘I hold a bullish view about PNG’s future,’ declared Mike Smith, addressing the Port Moresby Chamber of Commerce and Industry last week. ‘Since my last visit around 18

PAPUA New Guinea’s national government says it will improve law and order following the release of a World Bank Group report which warned high rates of crime and violence are slowing business expansion and hampering the country’s economic development. PNG asked the World Bank to assess the social and economic costs of crime and violence as they related to business, citizens, government and civil society. Eight out of 10 businesses surveyed in PNG said they

ABOLISHING fly-in, fly-out employment would have detrimental effects for Papua New Guinea’s mining industry, an Australian junior has warned. While applauding the PNG government’s determination to consult industry ahead of changes to the constitution regarding resources ownership, Highlands Pacific CEO John Gooding warned of potential ramifications of changing fly-in, fly-out rules. As PNG mining minister Byron Chan had vowed to halt FIFO operations – mostly from Cairns but also from other Australian destinations – for

OVER recent months, a few morsels of information have come to light suggesting that the financial situation is tightening around the government of Papua New Guinea. Now with the benefit of the Treasury’s mid-year report we have a much clearer picture. As expected, it’s not pretty. What we see is a government struggling to play by its own fiscal rules and to deliver on its own budget. It’s not obvious how long the country can

Nadi, Fiji – A two-day workshop to review four cluster pilots undertaken in Papua New Guinea, Samoa, Tonga, and Vanuatu ended on Tuesday with participants clearly outlining the desired future direction of cluster development in the Pacific. The Regional Cluster Initiative Project was funded by Business Climate Facility (BizClim), a programme of the European Union and the ACP Secretariat, funded through the 10th EDF (European Development Fund). The project was allocated €932,000 for the four countries.

The creation of the PNG LNG project highlights the next major challenge facing Papua New Guinea: how to grow the non-mining sectors. Economist Dan Gay says growing domestic demand, the internet and service industries can help overcome inherent problems. Whatever the Pacific’s been doing until now, it hasn’t been working. Overall economic growth in Papua New Guinea, leaving aside the LNG project, has been lacklustre. And the same applies in other Pacific states. World Bank