Revenue from the extractive industries must be managed properly to broaden the economic base of the country.
Newcrest Country Manager and Vice President of the PNG Chamber of Mines & Petroleum, Peter Aitsi, said this day during the National Parliament Induction Programme.
In a panel session giving parliamentarians an update on the sector, Aitsi said given that extractive industry projects such as gold mines have a fixed life span, it was important to plan ahead and to use the revenue generated to invest in sustainable avenues such as agriculture.
He said this was to ensure the funds were used to maximum benefit for the people of the country.
According to the PNG Chamber of Mines and Petroleum, the resource sectors contribute 26 percent to the country’s Gross Domestic Product (GDP), and 84 percent of the export revenue coming from the resource sector.
Between 2005 and 2012, contributions to the Government Tax Revenue when commodity prices were strong stood at K16.31 billion, which is an average of K2 billion a year.
Aitsi said currently, commodity prices have dropped, resulting in a declining revenue.
However, there is optimism that prices will pick up in the medium term and this is where proper management of revenue is crucial.
“So that’s the important exercise for you, as members, is to look at how best we translate the resource sector as the engines of development, and how we channel that into the other sectors to broaden the economic base for Papua New Guinea,” stressed Aitsi.