Prime Minister, James Marape says Papua New Guinea has received strong international recognition for its fiscal discipline and economic management during high-level meetings with global financial institutions in Davos, Switzerland.
When briefing local media upon his return on Sunday evening in Port Moresby, Prime Minister confirmed meetings with the leadership of the International Monetary Fund and the World Bank, where PNG’s progress in reducing its Budget Deficit was praised.
“When I told them we are down to around a 1.1 percent deficit, they were pleasantly surprised,” Prime Minister Marape said.
He reaffirmed the Government’s commitment to delivering a balanced Budget and ending new borrowing.
“Next year, there will be no more borrowing. We will move into a balanced Budget and focus on debt repayment,” he said.
Prime Minister Marape said PNG’s Medium-Term goal is to reduce Debt-to-GDP levels below 20 percent over the coming years.
“In a world where many countries are operating with deficits above five percent and debt above 80 percent of GDP, PNG is taking a disciplined path,” he said in a statement.
He said the IMF and World Bank acknowledged PNG’s post-COVID recovery strategy and fiscal consolidation efforts.
“They encouraged us to keep producing, exporting, and growing our economy,” he said.
The Prime Minister added that this international confidence strengthens PNG’s credibility with investors and development partners.