By Jack Lapauve Jr, EMTV – Port Moresby
The fall in world oil prices of more than 35 per cent will impact government revenues with an estimate of K1.4 billion in 2015.
This poses a slight risk for the country in the first half of next year.
Director of the Institute of National Affairs, Paul Barker, says the government must be mindful of borrowing trends, while focusing on delivery of services captured in the 2015 budget. “Minimum borrowing must be government’s intention”, he said.
Barker made these comments in an EMTV Resource PNG interview. He says, the fall in world prices will hit hard on PNG’s economy.
“The direct effect sees flow of LNG revenues offshore in the first half of 2015 but would gradually see a pullback in the second half of 2015”, he added.
But Mr Barker wants the government to be focused on key priority sectors of education, health, law and order and infrastructure, while keeping an eye on the exchange rate and the currency.
Arguably, Mr Barker wants to see an economic driven currency by restoring cocoa, coconut and the coffee industry.