Prime Minister Peter O’Neill has again assured the parliament and the people of PNG that the government is maintaining its debt level.
He says there is no need for panic.
O'Neill made this assurance when responding to Deputy Opposition Leader Sam Basil on the recent loan the government obtained from the Asian Development Bank.
Basil questioned the Prime Minister and needed clarification on the K80 million obtained to carry out road projects in Ialibu-Pangia in Southern Highlands Province, and the recent K222m for water supply in rural areas across the country.
O'Neill, in response, clarified that the K80m for his district is part of the Highlands highway rehabilitation project. It will be used to roll out maintenance on road projects along the highway from Eastern Highlands to Southern Highlands Province.
He said the project has been going on for the last 10-15 years, approved by former governments.
O'Neill reiterated that the government is borrowing within the limits of the Fiscal Responsibility Act.
"We are within the limits and better than any other countries in the world,” he stated.
"We are also better than our Pacific island countries in terms of debt level."
He added that there is no need to panic as the government is maintaining its debt level.
"We will continue to borrow to build roads, hospitals and infrastructure around the country and most of these are concessional loans."