Prime Minister Hon. James Marape has urged the Bank of Papua New Guinea (BPNG) to play a pivotal role in the creation of a K200 billion economy that will help define the future of Papua New Guinea. The Prime Minister’s remarks came during his participation in the grand 50th anniversary celebrations of BPNG, which took place in Port Moresby on Wednesday, November 1, 2023.
Commending the dedication and contributions of all the Governors of BPNG and its staff, Prime Minister Marape acknowledged the institution’s journey, which has brought it to this significant milestone in the nation’s financial history.
Prime Minister Marape emphasised the critical sectors that will drive the country’s economy for the next 30 years, including the Porgera mine, Papua LNG, Pasca LNG, P’nyang LNG, and Wafi-Golpu mine. He also highlighted the pivotal role of downstream processing projects in shaping the nation’s economic future.
“Thanks to our sound fiscal policies, we are poised to make significant leaps in our economic growth over the next decade, achieving in a mere ten years what previously took us five decades,” Prime Minister Marape said.
“I have high expectations for the Central Bank to assist us in this endeavour. A stronger economy will pave the way for building the modern Papua New Guinea that we all aspire to, characterised by security and inclusivity for all.”
Prime Minister Marape reflected on his vision from 2019 when he assumed office, stating, “I set forth the goal of achieving a K200 billion economy by 2029. Once we reach this milestone, our budgetary plans will be marked by sustainability.
“I call upon the Central Bank to raise the bar in our pursuit of a K200 billion economy and beyond as we move forward.”
Reflecting on the historical journey, Prime Minister Marape noted, “When BPNG opened its doors on November 1, 1973, Papua New Guinea’s economy was valued at under K5 billion. Today, we boast significantly greater liquidity.
“In 2019, when I assumed the role of Prime Minister, our economy was below K80 billion. Presently, it has exceeded K113 billion, as confirmed by esteemed international bodies like the World Bank, International Monetary Fund, and Asian Development Bank. However, the needs of our people far surpass the current economic status.
“It is incumbent upon each of us, particularly those within the core State institutions, to ensure that we foster economic growth while delivering effective public services and meeting the needs of our citizens. This commitment lays the foundation for the future prospects of our nation.”
Prime Minister Marape called on BPNG to ensure that its monetary policies align closely with the Government’s fiscal policies to promote robust economic growth.
He challenged BPNG and its dedicated staff to replicate the achievements of the past 50 years in just 10 years, emphasising their pivotal role in driving progress.
“You must remove barriers within the banking system and ensure that our financial systems are resilient and effectively serve our economy. The fiscal policy of the Government and the monetary policy of the bank must work in tandem,” Prime Minister Marape said.