International Monetary Fund (IMF)

PNG economy meeting targets: Treasurer

“Indeed, of the 18 benchmarks set out in my presentations to Parliament, 17 have been met and one has had a minor delay as the updated Medium-Term Revenue Strategy has been agreed to by the Ministerial Economic Sub-Committee of the NEC, but not considered yet by the NEC itself,” the Treasurer stated.

In addition, Mr Ling-Stuckey said there has been “staff level” agreement for new benchmarks that will be taken to NEC for consideration.

Positive economic outlook for PNG: IMF

These events have adversely impacted economic growth, worsened foreign exchange shortages that hampered private sector development, and increased public debt. 

According to the International Monetary Fund (IMF), a recovery from the pandemic is now underway: real gross domestic product (GDP) is estimated to have grown by 4.5 percent in 2022 as most COVID-related restrictions were removed, allowing the non-resource sector to rebound.

The IMF has projected a positive economic outlook for PNG after the recovery from the recent pandemic.

IMF approves financing programs

The request, made under its Extended Credit Facility and Extended Fund Facility, will run from March 2023 to March 2026.

The program is for budget support to assist the Government to pursue fiscal consolidation in the medium term and undertake critical reforms to help improve the performance of the economy.

This funding is tied to conditions and reforms that PNG is required to meet, defined as structural benchmarks and quantitative targets under the program to trigger drawdowns over the period.

IMF approves K3.2b loan for PNG

The IMF stated in a press release that the program seeks to protect the vulnerable and foster inclusive growth.

The reforms will focus on strengthening debt sustainability, alleviating foreign exchange (FX) shortages, and enhancing governance and operationalizing the anti-corruption framework.

Positive discussions with IMF: Treasurer

“A steady hand of gradual reductions in the budget deficit will mean a return to budget surpluses, currently estimated by 2028 based on conservative assumptions,” stated Ling-Stuckey.

“There is a need for careful judgements in how we go about these fiscal adjustments – ensuring we continue to invest in education, health and infrastructure, ensuring we lift tax compliance, and ensuring we have better tax deals for future resource projects.”

The Minister outlined that the Marape Government is pursuing an ambitious economic reform plan.

​IMF welcomes govt’s 100-day plan

The team, led by Scott Roger, project coordinator at the Pacific Financial Technical Assistance Centre in Fiji, visited Port Moresby between August 31st and September 14th as part of the IMF’s Article IV Consultation.

They stated the plan is a welcome initiative and that further reductions in the deficit will be needed in the next few years by bringing down public sector wage costs and strengthening the revenue base.

They also said the monetary policy should aim to support greater exchange rate flexibility.

PNG needs prudent macroeconomic policies: IMF

This was from the executive board of the International Monetary Fund (IMF), in consultation with PNG on November 29, 2016.

“As a commodity exporter, the PNG economy has been hit hard by the drop in world commodity prices and a major drought. The authorities have responded to these shocks through fiscal tightening and a combination of modest exchange rate depreciation and FX sales,” the board said in a statement.

“Strong economic growth driven by the start of the PNG LNG project, has tailed off amidst weak non-resource sector growth.