The Treasury Department and Bank of Papua New Guinea are assisting the Government to digitise all government payments and make markets more accessible.
Since November 2015, the department has led a Financial Services Sector Review Project throughout the country.
It ended last Friday in Mt Hagen, where they presented their proposed Financial Sector Development Strategy to stakeholders.
The Financial Sector Development Strategy, or FSDS covers four broad topics. They are:
- Capital Market Development
- Payment System Development
- Financial Inclusion Program, and
- Regulatory Arrangements
The government, through BPNG and Treasury, are finding a way forward to open up or free the government bond market or the liquidity, to enable a two way market.
Currently, commercial banks and superannuation funds hold market shares.
This review will develop a local equity so that ordinary citizens or corporate organisations can buy and sell market shares.
There will be opportunity to expand the market by listing some public enterprises such as the ownership of Port Moresby Stock Exchange, corporate governance and reporting to the public.
They are also in the process of shifting some government payments to automated payments and not government cheques.
