COVID-19 pandemic affecting commodity prices

Both mineral and non-mineral exports will be largely impacted by the fall in commodity prices during the COVID-19 pandemic.

Central Bank Governor Loi Bakani said this will affect the revenue for government and foreign exchange inflows into the market and to BPNG.

He said PNG, being a price taker, cannot do much about commodity prices.

Mr Bakani also stressed that even domestic tax and customs revenues will be lower given the slowdown of economic and business activities and an increase in jobs loss.

He explained that the only alternative source is external financing.

He went on and clarified that this is why the Government is seeking assistance from international financial institutions.

Mr Bakani also warned that if spent prudently in areas that will generate future businesses, revenues and jobs, then it will contribute to recovery of the economy.

Meantime, the State of Emergency Controller, David Manning has urged private businesses and companies to continue to abide by the SOE orders to maintain salaries and other terms and conditions of their workers.

A report to the Controller from the Department of Labour and Industrial Relations on behalf of the Tripartite Parties stated that an increasing number of people are raising concerns or are being terminated and laid off or having their pay cut.

The report stated that some companies have complied but others are yet to comply with SOE directives.

The Department of Labour & Industrial Relations is now investigating and advising the companies to comply.

Author: 
Freddy Mou