Govt tackles forex shortage with reforms, IMF support
THE Marape-Rosso Government has tackled the forex crisis with historic reforms and IMF support.
This is detailed in Treasurer Ian Ling Stuckey’s economic update in Parliament yesterday on PNG’s 2024 Final Budget Outcome and the 2025 Budget Implementation, where the government’s efforts to address the forex crisis, which has been a significant barrier to growth in Papua New Guinea for many years has been an issue.
Mr Ling-Stuckey said PNG’s economic recovery was continuing despite challenges and the country’s economy was still growing despite the challenges the country has faced, such as the riots, global uncertainty, and violence at home.
Treasurer Ling-Stuckey also highlighted the government’s efforts to address the forex crisis, which has been a significant barrier to growth in the country for many years.
“Yesterday, I was pleased to see an article in Business Advantage, asking the question “ls Papua New Guinea’s forex crisis finally drawing to an end?” he said.
“While I will want to double check the accuracy of the data, reports from ANZ and Westpac are that, sometimes, FX orders are being filled the same day, and for BSP, generally within a week.
“FX shortages have been identified as the greatest barrier to growth in PNG for eight of the last ten years.
“A home goal created by poor decisions back in 2014.
“The government tackled this problem with historic Central Banking Act reforms, a new team at BPNG, and IMF support.
“Finally, there may be a light at the end of this tunnel, with all the improvements this could bring to growth, and investment.
“There are signs of hope that foreign exchange availability is significantly improving, and we are one step closer to Kina convertibility.
“Despite a tough year in 2024 for revenues and financing, the 2024 Final Budget Outcome demonstrates 94% of the GoPNG Budget was delivered. PNG remains on track with our Budget Repair program.
“And finally, after a slow start, 2025 budget implementation is well underway.”
