Inflation expected to be six per cent this year, UNDP claims ‘timely’ reporting on expenditure and stock exchange notes trading activity down 43 per cent. Your weekly digest of the latest business news.

Papua New Guinea’s inflation is expected to be 6.0 per cent in 2016 and 2017 according to the Asian Development Bank. The ADB’s Asian Development Outlook 2016 says the PNG economy has become more dependent on resource exports, increasing the economy’s exposure to global commodity price volatility. ‘To encourage inclusive and sustainable growth, the government needs to ensure that other sectors—agriculture, manufacturing, and services— do not suffer as a result of growth in the mineral sector and are able to operate at their full potential,’ the report says. Economic growth is predicted to be 4.3 per cent in 2016 and agriculture is projected to grow by 3.8 per cent in 2016 and 3.4 per cent in 2017.

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Dr Ken Ngangan

The United Nations Development Program (UNDP) claims ‘timely reporting’ on public expenditure across PNG has improved by 41 per cent within the last three months. The UNDP attributes this to PNG’s Department of Finance introducing an information database that captures financial reports coming from the provinces and districts and produces real-time status updates. The UNDP claims that prior to the introduction, only nine districts out of 89 submitted reports on time; now 37 districts do. ‘Initially, people were reluctant to engage, but when we publicly showed where they are, many districts started to come forward, because they did not want to look bad in front of everyone,’ said Secretary of the Department of Finance, Dr Ken Ngangan.

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The acting General Manager of the Port Moresby Stock Exchange (POMSoX) Vincent Ivosa has acknowledged that trading activity is down about 43 per cent on the levels of the previous year, according to the Post Courier. Ivosa said volumes and turnover were also lower than the corresponding period in 2015, it is reported.

While volumes and turnover are down, the Kina Securities Share Index (KSi) has so far risen 36.9% this year.

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Sir Peter Barter

Sir Peter Barter, Managing Director of Melanesian Tourist Services, says perceptions about crime in Papua New Guinea makes the tourism challenge more complicated, according to the The National. ‘Crime is largely a perception in most regions in PNG, but regretfully the media carries horrendous stories,’ he is quoted as saying.

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Japanese firm Setouchi Holdings is hoping to export fresh fish from Papua New Guinea to the European market, according to the Post Courier. The announcement was made last week during a dialogue with the Lae-based International Food Corporation (IFC) Limited. Executive Officer Akira Kazusa said most of the investors operating in PNG are exporting canned fish; however, Setouchi will be concentrating on the export of fresh fish.

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Puma Energy has launched a new product, called Puma Gas, in Lae, according to EMTV. The company intends to roll out the service to the other parts of the country, it is reported.

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(L to R) Governor for Gulf Province Havila Kavo, Total’s Philippe Blanchard and Olivier de Langavant, Prime Minister O’Neill, Minister for Minister Petroleum and Energy Ben Micah, and PNG’s Ambassador to France Joshua Kalinoe at Total’s global HQ. Credit: Prime Minister’s Office

And finally, Prime Minister Peter O’Neill and other senior government officials have toured Total SA’s global headquarters and its Centre Scientifique et Technique Jean Feger at Pau in France’s Aquitaine region. The facility is the main technical and scientific research centre for the French oil and gas group, which is leading the Papua LNG project.

‘Research is underway that will make the development and operation of the Papua LNG project more accurate in sourcing gas, safer for workers and minimise impact on the environment,’ said the Prime Minister in a statement. ‘These are essential elements in ensuring the Papua LNG project is properly delivered.’