Papua New Guinea, like the rest of the world, is being hard hit by skyrocketing inflation – impacting greatly upon citizens with no end in sight.
Prime Minister James Marape has said that higher prices of fuel and goods are expected to remain reflecting the impact of the Russia – Ukraine war.
The National Government earlier introduced a K611 million assistance package which includes the 10% GST cuts to specific goods, fuel prices subsidy, the inclusion of “lifting of the income tax threshold and fully funding school project fee costs in education for this year.
Prime Minister Marape told NBC news – a lot of people did not benefit earlier from the subsidy due to agencies being slow in implementing it.
Marape says the subsidy should be fully implemented now with further assistance through a supplementary budget.
He says Treasury and other relevant government agencies are re-looking at the model, to see what ways the assistance can be further provided.
The revised package from K350 million to K611 million introduced in April is aimed at subsidizing the increasing prices of basic goods and services, caused as a direct result of the Russia-Ukraine war.
Meantime, the Bank of PNG says, the country is currently facing imported inflation as a direct impact of the ongoing war between Russia and Ukraine.
Acting Governor of the Bank of Papua New Guinea, Benny Popoitai said this in an interview with NBC News.
He says the increase in the prices of goods and services is experienced globally and P-N-G is no exception.
Mr. Popoitai added that BPNG has reacted to inflation by increasing the policy interest rate and reducing cash available to the banks for lending.
NBC News / PNG Today
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