Pruaitch On LNG

Despite many criticisms about the PNG Kina trading at an all time low, and other downsides about the PNG LNG Project, the government has affirmed that all is under control.

In a statement, Minister for Treasury, Patrick Pruaitch, said the PNG LNG Project will provide the economy with wide-ranging social and economic benefits.


Minister Pruaitch was refuting claims by Deputy Opposition Leader, Sam Basil that Minister Pruaitch was unable to explain to parliament how the LNG exports would benefit the PNG economy.


Today, Mr Basil reissued his call for the treasurer to explain clearly.


In a statement, Minister Pruaitch said the benefits from the PNG LNG project have been explained on numerous occasions both inside and outside parliament.


It has often been stated by Prime Minister, Peter O’Neill, and others that the economy is anticipated to grow by a record 21 percent, making it one of the fastest growing economies in the world.


He said the project has employed several thousands of Papua New Guineans in recent years. With the recent LNG export, the nation’s revenues will grow by some K10 billion to K12 billion in a full calendar year.


It has been stated that part of the reason for the government to set up a Sovereign Wealth Fund has been to try and cushion some of the negative impacts of the Dutch Disease syndrome. Dutch disease is the negative impact on an economy that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil or gas reserves.


Deputy Opposition Leader, Sam Basil in an interview with EMTV, said the real concern is the reality on the ground where prices of basic goods and services are starting to increase.


Mr Basil said the Opposition believes that the current state of PNG’s economy is a direct result of the government’s mismanagement and high debt over-spending.


The Opposition says revenues from the first gas export won’t benefit PNG’s economy as it will be used to repay the government’s accrued loan interests.


The Opposition maintains that it won’t stop until Papua New Guineans are made aware of the reality behind the government’s mismanagement.

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