3 May 2015

PNG private sector assessment: Reforms key to realizing growth potential

PORT MORESBY, PAPUA NEW GUINEA (4 May 2015)Further efforts to develop the private sector are needed for Papua New Guinea (PNG) to realize its potential for economic development and secure its progression to a diversified economy, according to a PSDI report released today.
The report, Buildinga Dynamic Pacific Economy: Strengthening the Private Sector in Papua New Guinea, analyzes the complex environment affecting private sector businesses in the country, identifies the main constraints to private sector growth, and recommends policy adaptations. It was launched by Paul Holden, Lead Economist with PSDI, at a breakfast hosted by the PNG Chamber of Commerce and Industry at the Royal Papua Yacht Club in Port Moresby.
“The potential for the private sector to contribute to inclusive, broad-based and sustainable growth in PNG is very high,” said Andrea Iffland, Regional Director of ADB’s Pacific Liaison and Coordination Office in Sydney. “The recommendations arising from our analysis could help the PNG government sustain the remarkable growth of the past 8 years well into the coming decades, and ensure that future resource exports benefit the entire economy.”
To help make PNG a safer, more productive and easier place to do business, the report offers recommendations on investments in infrastructure, reforms to essential services delivery, ways in which PNG can improve access to finance for business, and efforts to improve safety in personal and business transactions. Its analysis of PNG’s business environment discusses how the broader economy can adapt to the effects of the natural resource boom, and suggests policies that can assist businesses in the non-resource sector.
The launch of Building a Dynamic Pacific Economy was
attended by a wide selection of PNG's private sector,
government and media.
The PNG private sector assessment (PSA) is an integral part of the recently approved PNG Country Partnership Strategy 2016-2020, which is ADB’s primary planning instrument for the country.