According to Paul Barker, executive director of the Institute of National Affairs, there are more optimistic economic signals in the wind right now.
“Commitments with Barrick on Porgera, and with Total over Papua LNG will provide some boost to business confidence, and should see restoration and operations commence at Porgera during 2021 and restored production and exports. The recent fiscal stability agreement and the new agreement between the Government and Total on project terms and timelines should see some restoration of the disbanded project team and other preparatory work, albeit that the task of financing and any construction and development remains well into the future.”
Barker also noted that some commodity prices had improved, citing some PNG extractive and agricultural products, as well as oil and gas, gold and some agricultural crops, and vegetable oils, as well as coffee, which was just beginning what seemed to be a successful harvest.
“This will provide a useful reprieve, including for the majority who depend upon the agriculture sector and will also work its way through in improved revenue to the State in due course. PNG cannot simply await improved prices for enhanced incomes,” he said.
“It needs to be able to invest and diversify its economy, build-up its human capital, both skills and work discipline and standards, stop driving prices up for businesses and the cost of living for households by disrupting markets, or signing up over-priced infrastructure projects, including for power.”
