Business Environment in Papua New Guinea not conducive

 THE operating environment  for many business in Papua New Guinea is still a big challenge and difficult, PNG Chamber of Commerce and Industry president Ian Tarutia says.

He told the local newspaper ,  The National that this was a result of power costs, rising fuel costs, law and order (problems), deteriorating infrastructure, limited investment opportunities, foreign exchange (Forex) shortages and inconsistent application and enforcement of Niupela Pasin (New Normal) protocols.

Business Environment in Papua New Guinea not conducive [Photo Central Waigani, Port Moresby by]

“Cost of power, unstable and inconsistent grid supply are forcing many businesses to resort to back up power alternatives,” Tarutia said.

“Rising fuel costs for generators adds to unproductive business costs.

“Imposition of government services and licence fees without adequate consultation with business (adds to the woes).

“Law and order remains a constant worry.

“Deteriorating road and bridges are major issues.

“Speed to market and convenient travel are impeded.

“Alternatives such as air travel is an expensive option and not conducive to business growth.

“Limited to no investment opportunities resulting in legitimate businesses taking a more defensive approaches and shoring up on cash holdings due to uncertainty in the market.

“Forex shortages to pay for manufacturing inputs, goods and services procured off shore (are dampers to businesses), affecting outstanding bills for goods and services.

“Also, the inconsistent application and enforcement of the Niupela Pasin protocols, not to mention low country wide vaccination uptake.” Tarutia said businesses would like more meaningful dialogue with key economic ministers other than the prime minister who are meant to take business concerns to their respective departments and cabinet.

The National / Pacific Business News

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