Financial crisis

The leader of the opposition Don Polye said PNG should seek assistance from the International Monetary Fund following revenue shortfalls caused by the global collapse of oil and mineral prices.

Public servants in PNG have complained this month about not being paid wages and funds for basic services in the provinces appear to have dried up.

Economist Paul Flanagan said the IMF was a good source of cheap finance.

"The opposition is talking about maybe going to the IMF. The IMF is actually reasonably cheap finance to assist with these types of transitions.

Sir Michael said the situation will inevitably impact on them in the course of the year.

In an email to Loop PNG, Sir Michael called on Sepiks of both provinces to be mindful that with the cash flow problems experienced at the national level, there will certainly be repercussions in not just in their two provinces but all provinces throughout the country this year.

“Our social sectors, health and education, will definitely be affected.