Prime Minister, James Marape says the depreciation of the Kina is benefiting farmers and exporters, but his government is working to balance gains for importers as well with rising costs faced by importers and consumers.
He cited the depreciation to K1.3 billion revenue netted by coffee.
“The lower Kina is good for exporters,” the Prime Minister said.
PM Marape pointed to coffee, oil and gas, gold, fisheries, agriculture and other resource exports are now earning more when converted to local currency.
He said the policy allows more foreign currency to flow into the country, strengthening reserves and supporting economic activity.
He also cited that backlog of foreign currency has become thing of the past.
However, Prime Minister Marape acknowledged that depreciation increases the cost of imports, particularly fuel, medicine and essential goods.
He said Treasury Department was instructed to consider ways to help the importers.
PM Marape said the relief package to help importers is similar to his government’s intervention with GST relief on household items and K20,000 tax-free bracket for income earners.
He indicated stamp duty exemption but did not give details on this.
He stressed that the Kina remains market-driven, but Government and the Central Bank are working together to ensure stability while protecting both producers and consumers.
“This is about finding balance — supporting exporters, attracting foreign investment, and protecting importers and ordinary Papua New Guineans,” he said.