Now that LNG exports have started, the nation’s export revenues will grow by some K10 billion to K12 billion (US$3.7 – US$4.4 million) in a full calendar year, Papua New Guinea Treasurer Patrick Pruaitch says.
He said these revenue flows would greatly boost PNG’s balance of trade with the inflow of US dollars from LNG exports contributing to a strengthening of the Kina.
Pruaitch was responding to deputy opposition leader Sam Basil’s claim that he was unable to explain how the LNG exports would boost the economy and improve the country’s exchange rate.
“The deputy opposition leader went on to add that the kina was now trading at an all-time low which is absolute nonsense,” he said in a statement.
He said LNG exports would provide PNG with wide-ranging social and economic benefits, adding that the benefits started before the first LNG export last month.
“The benefits to this country from the LNG project have been explained on numerous situations both inside and outside Parliament.
“Most people are already aware that a significant part of PNG’s strong economic growth in the past four years was directly related to the start of construction of the LNG project.
“It has been stated often enough, by the prime minister and others, that the PNG economy is anticipated to grow by a record 21%, making it one of the fastest-growing economies in the world. The project has employed several thousands of Papua New Guineans in recent years.
“It has been stated often enough, and debated in the media and elsewhere, that PNG needs to guard against the ‘Dutch Disease’ caused by the strengthening of the kina in the face of surging LNG revenues.
“It has been stated that part of the reason for the Government decision to set up a Sovereign Wealth Fund has been to try and cushion some of the negative impacts of the ‘Dutch Disease’.
“It could be well that Basil had missed out on some of these debates because he might have been on one of his extensive holidays.”
PORT MORESBY, (THE NATIONAL)
