EVERY cloud has a silver lining. There have been two recent, positive economic policy developments in Papua New Guinea.
First, on 20 May, the Treasury Secretary, Mr Dairi Vele, announced that a budget review is underway. The review comes after dramatic falls in world commodity prices that have affected government revenue and PNG’s international credit rating.
The likely budget cuts will of course be difficult, but there is little option if PNG wishes to maintain its macroeconomic stability and growth.
The second positive development was hidden away in a monthly statistical update released on 11 May by PNG’s central bank, the Bank of PNG (BPNG).