Papua New Guinea’s National Executive Council has announced that K600 million will start to flow to the health, security, agriculture, business and household sectors as a first step in the government’s K5.7 billion coronavirus Economic Stimulus Package. Treasurer Ian Ling-Stuckey said this is K100 million more than was initially planned.

Treasurer Ian Ling-Stuckey. Credit: Martyn Namorong/Linkedin

The Treasurer said in a statement that K280 million will go towards ‘health and security measures’ and that K320 million will be spent on supporting agriculture, households and business.

‘The spending is carefully targeted to have the biggest impact possible across all geographic regions and economic sectors, and builds on initiatives that we have already taken,’ Ling-Stuckey said. ‘This will not be a Port Moresby-centred, big business response – the needs are across our country including for our households, our farmers, our MSMEs.’

The statement said the success of the initial COVID-19 Bond issuance made it possible for the first tranche of COVID-19 direct funding to be released. Ling-Stuckey said a second COVID-19 Bond was released last week.

Targets

The statement outlined how the stimulus money will be allocated.

The K320 million in agriculture, housheold and business support will be allocated as follows:

The K280 million to health and security will be distributed as follows:

Other support

Ling-Stuckey there will be other elements in the support package, noting that the K600 million is ‘the direct budget funding’. He said the National Executive Council has approved the Emergency Controller, David Manning, to authorise super fund members getting early access to their own superannuation contributions. He estimates this will inject K500 million into the economy.

‘We are continuing to monitor how banks are providing the loan repayment deferrals for businesses – estimated at K600 million of economic support. We are working very closely with the Independent Consumer and Competition Commission (ICCC) to control price increases.’

Ling-Stuckey said that the government is looking to see lower prices in some areas, including ‘massive reductions in fuel prices’. He said there will be targeted support for lowering freight costs ‘but this massive drop in fuel prices through the ICCC will be worth much more’.