Enabling Business, Investment and Employment Creation over the medium-term. Department of Treasury
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1 Enabling Business, Investment and Employment Creation over the medium-term Department of Treasury
2 Economic Outlook -International -Domestic Employment Key Reform Objectives Conclusion Outline
3 World Economic Growth The world economy to grow by 4.5 per cent in 2011; Strong world economy = higher commodity prices and better global trade; Positive outcome for PNG s economic & fiscal outlook in 2011 with stronger demand for PNG s exports; and High degree of uncertainty in the recovery of global economic growth remains
4 PNG s Economy to Remain Strong 25 Per cent Per cent Forecast
5 Contribution to GDP Oil and Gas Extraction Mining and Quarrying Manufacturing Electricity, gas and water Agriculture, Forestry and Fishing Community, social and personal services Wholesale and retail trade Finance, real estate and business services Transport, storage and communication Construction Percentage Point Contribution to Growth
6 Employment 18 Per cent, tty Per cent, tty Mining Employment Non-Mining Employment Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11
7 Objective 1 Key Reform Objectives Promoting Good Governance Focus Improve good governance frameworks by cultivating institutions and admin systems that will nurture and encourage proper management of public resources and a stable and transparent economic and regulatory climate.
8 Key Reform Objectives- Cont d Objective 2 Sustaining Macroeconomic Stability Focus To improve fiscal management and transparency of budgeting and improving debt management function.
9 Key Reform Objectives- Cont d Objective 3 Improving Public Sector Performance Focus To revitalize the public sector s capacity to design and implement sound policies as well as revive the erosion on its ability to manage its responsibility.
10 Objective 4 Removing Barriers to Economic Growth and Development Focus Key Reform Objectives- Cont d Removing inefficient and anti-competitive trade and investment restrictions and regulations, at the same time improving governance, strengthening and developing basic institutions for private sector to operate efficiently
11 Major Reform Priorities Four priority areas: National Land Development Program Public Private Partnerships (PPP) legislation Microfinance Project Electricity Industry Policy
12 Land Development Program (NLDP) The NLDP aims to: Unlock economic potential of customary land whilst protecting the rights of landowners Improve land administration Resolve land disputes Next steps: NLDP Implementation Plan Establish NLDP Office
13 PPP Policy PPPs are contracts between Govt and private sector for delivery of key public infrastructure PPP policy endorsed in December 2008 Next steps: finalise PPP Bill for Parliament Public consultations completed PPP Taskforce will submit PPP Bill to NEC this year.
14 Microfinance Project Microfinance is the provision of a broad range of financial services. Mostly aimed at making financial services more accessible to the wider population. Microfinance Expansion Project (2001-) Micro deposits up: 45,000 (2002) to 295,000 (2008) Nationwide Micro-bank Commercial enterprise now has 13 branches and 100,000 customers.
15 Electricity Industry Policy Draft Electricity Industry Policy aims to: Increase private sector s participation in electricity services (i.e competition in power generation) Help to progress the Government s broader framework to improve the affordability, reliability and accessibility of electricity Services Establish an Electricity Management Committee Establish an Electrification Trust Fund
16 Conclusion Strong domestic growth but global recovery continues to be uncertain Government focused on four key reform objectives targeted at the four reform priority areas. Consistent with the Government s MTDP and the PNG Vision 2050
17 ANY QUESTIONS?
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