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November 2022

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2023 National Budget Breakdown

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Logging companies and banks will be paying more taxes in 2023 as the government sets its sights on increasing tax revenue.

Treasurer Minister, Ian Ling-Stuckey has announced an additional 20 percent increase in log export taxes as well as an increase in a tax on the banking sector from 30 percent to 45 percent.

He made the announcement in parliament when he tabled the K24 billion 2023 budget.

The tax on loggers builds on existing efforts to stop log exports by 2025 and encourage downstream processing in the country.

In 2020, the government imposed a 50 percent tax on round log exports. In 2023, an additional 20 percent will be added on, bringing the total to 70 percent. The Treasurer said the K30 million generated from this tax will be used to support the UN-backed trust fund.

Banks, meanwhile, have been hit with a 45 percent tax – a 15 percent increase expected to generate K240 million for the government purse.

While the banking sector is yet to respond to the announcements from a profits standpoint, the most obvious long-term impact will be on superfunds whose members’ contributions will be affected.

Superfunds that own shares in banks like BSP will likely see a dip in dividend payments in the next financial year.

Household Support

In January, the minimum tax-free threshold will be increased from K13,000 to K20,000 and the fuel excise suspended for six months until June. This means minimum wage earners earning a maximum of K20,000 will not pay income tax.

Police and Justice Sector

The law and justice sector will see funding increases in 2023. The government has allocated K401 million for the police, the judiciary, and other related sectors. The funding will support the increase in police numbers from 5000 to 7000 in 2026.

Infrastructure

More than K4 billion has been earmarked for infrastructure development with K960 million primarily for district infrastructure alone.

Health and Education

Health and education will also see increases next year with the treasurer indicating more support for frontline workers.

Agriculture and Economic

With the creation of new ministries, the National Government will increase funding for the economic sector from K71.8 million to K983.9 million.

This will see additional funding given to the commodity boards as well as a K2.61 million funding for the new Livestock and Development Corporation.

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Transforming Papua New Guinea into a Force of Nature

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Home to lush tropical rainforests, magnificent mountains, and pristine islands and seas, Papua New Guinea is one of the world’s 17 megadiverse countries, accounting for about five percent of global biodiversity.

However, climate change and unsustainable growth threaten these natural assets, ones that the people have enjoyed for thousands of years.

Sipora Naraga, a resident of Aromot Island, an atoll off the coast of Umbol Island the Vitiaz Strait of Morobe Province, laments about what has come to pass.

“Our island is smaller now than it was before.”

“The soil isn’t fertile like it used to be, we can’t grow anything here,” she says.

Sipora’s story speaks directly to the impacts of climate change, deforestation, and degradation of land and water.

PNG’s abundant natural assets underpin its potential to manage and use these assets to generate an ‘ecosystem services’ economy – based on fisheries, tourism, and renewable energy. And yet much of the country’s recent growth has been fueled by hydrocarbon-based industrialization and the extractive industries.

In 2019, extractives made up over a quarter of the country’s gross domestic product and accounted for 88% of its export revenues.

And yet, much of the population has not benefited from these revenues.

It is mostly subsistence-based agriculture, forestry, and fishing sectors that account for a quarter of the GDP, and supports over 80% of the population.

Recognizing the threats to its marine and terrestrial environment and acknowledging its global role as a frontier nation in the fight against climate change, the Government of PNG has made several strong international commitments and has advanced its domestic legislation and policy statements.

Implementation, however, has fallen short of the commendable intent and ambition.

A report recently published by the PNG Conservation and Environment Protection Authority (CEPA) and UNDP offers some clear insights.

The report – “Making Nature’s Value Visible” – presents clear evidence and data that the highly concentrated extractive-based growth, combined with insufficient enforcement of environmental standards cannot sustainably and inclusively increase the country’s prosperity.

Read More: “Making Nature’s Value Visible: Valuing the Contribution of Nature to Papua New Guinea Livelihoods ea.’s Economy and”  

The development imperative for PNG is clear. The country will gain significantly in both the short and long run, by pivoting its economy toward its most abundant resource: the natural environment. Moving rapidly to renewable energy, introducing sustainable agriculture and fisheries practices at scale, and restoring and regenerating the country’s marine and terrestrial environments, are all essential investments in the country’s future.

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Sinu Festival – A Limelight for Unggai-Bena

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A mini cultural festival was registered, recognized, and launched by National Cultural Commission together with the Tourism Promotion Authority at Komu Village in Upper Bena local level government in the Unggai-Bena District of Eastern Highlands Province last Thursday.

The Sinu cultural festival, named after Mountain Sinu, is a culturally distinctive community that becomes the host and custodian of the festival which will be a feeder or mini-cultural festival to the larger annual Goroka Show.

Tourism Promotion Authority chief executive officer Mr. Eric Mossman Uvovo told the people of Upper Bena and the entire Unggai-Bena, to embrace their distinctive cultural practices and traditions.

Mr. Eric Mossman Uvovo elaborated that it is essential to uphold our diverse oral and written cultural practices and pass them on to the next generation.

“Culture is an important aspect of livelihood, we have to sustain and maintain or keep our culture alive. It is through this event that it will bring changes to the communities.

When you have these organizations coming to the communities they bring changes too, like roads, bridges, electricity, and water supplies into the surrounding villages.”

Mr. Uvovo further announced a K25, 000 donations towards the Komu Resource center which he initially funded.

“This funding is to go towards running training for MSMEs in the villages like sewing, cultural training and etc.,” he said.

“I thanked and appreciate the National Cultural Commission for recognizing, registering, and certifying Sinu Cultural Festival to be a lead-up event to the famous Goroka Show.

Sinu cultural festival will be a lead-up cultural festival to the Goroka show and this festival will be held a week prior to the much bigger show, the annual Goroka show,” added Mr. Uvovo.

The National Cultural Commission (NCC) is a Government agency mandated by an Act of Parliament to preserve, protect, safeguard, promote and market Papua New Guinea’s cultural heritages.

National Cultural Commission when presented K10, 000 to go towards the launching and opening of the Sinu Cultural Festival.

Bola Noho who is the Cultural manager of the National Cultural Commission when presenting the cheque and certification of registration to the Sinu Festival committee elaborated on the importance of maintaining and sustaining our cultures.

Mr. Noho highlighted it’s a sad scenario to see nowadays our culture is dying and our children are losing these vital cultural practices.

“Therefore, it is important we these organizations like the National Cultural Commission and Tourism Promotion Authority (TPA) working under the Ministry of Tourism, Art and Culture to partner and develop our cultures and its practices at the community level,” said Mr. Bola Noho.

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Enhancing Leadership Roles in PNG

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UN Women in partnership with the Queensland University of Technology and individual changemakers produced 13 digital stories around the topic of women in leadership.  The digital stories support the outreach and advocacy of the Women Make Change Initiative.

Following the 2017 national general election, Papua New Guinea became one of only three countries in the world with no women in Parliament.  In the 2022 National General Elections, two women were elected to Parliament, Rufina Peter – Central Regional MP, and Kessie Sawang – Rai Coast MP.

Since gaining independence in 1975 only nine women have been elected to Parliament.

The challenges facing women’s equal and meaningful political participation and leadership in Papua New Guinea are due to a variety of structural, systemic, and cultural factors.  Gender stereotypes that relegate women to supporting roles and diminish their ability to serve as political leaders mean PNG is missing out on the positive impact women’s leadership has been shown in different sectors around the world.

Research on women’s political leadership suggests that women are more likely to address issues that directly impact the broader community including employment, infrastructure, education, family policy, and social insurance. The United Nations Women Make Change aims to highlight various ways in which women are serving as leaders in their communities across the country.  The 13 digital stories produced by the UN Women project are critical to changing perceptions of women’s leadership while encouraging the support of male advocates to create a more equal society for both men and women in Papua New Guinea.

Following the release of the digital stories, a workshop was held recently at the APEC House in Port Moresby for participants including facilitators to analyze the data collected from the screening of the stories.

The aim of the project is to increase knowledge levels around women’s leadership, create awareness and support networks, and for the individual storytellers to reflect on any actions taken that can support women in leadership.

The digital stories can be viewed on the link below.

https://vimeo.com/showcase/womenmakechange

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Agriculture

Mama Bank Assists Local Farmers

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Women vegetable growers in Wau, Morobe Province have received two new walk-behind tractors.

Under an Agriculture, Value Chain Finance (AVCF) product tailored by the Women’s Micro Bank Limited (Mama Bank), Produce Distributer NKW Fresh, and the Pacific Private Sector Development Initiative (PSDI), the product aims at assisting small-scale farmers with financial needs.

Mama Bank CEO, Gunanidhi Das said farmers play a significant role in supplying PNG Markets with fresh produce and most importantly generate an income to support their families.

However, they are restricted to financial institutions to acquire funding to improve their productivity.

“Mama Bank is glad to empower and build the financial capacity of PNG farmers through easier access to credit facilities, and I thank NKW Fresh and PSDI for this great partnership,” said Das.  

Under the AVCF product, farmers can obtain finance to improve their income generation activities. The AVCF product will also identify areas in the sector that needs to improve.

With the walk-behind tractors, 15 women farmers are now set to benefit fully from this initiative.

“PSDI is pleased to support an important initiative and innovating financial solution,” PSDI Growth Specialist Jeremy Cleaver said.

Furthermore, NKW Fresh General Manager David Stewart said a farmer using machines like the walk-behind tractor can cultivate land four times more than the use of traditional tools like spades and forks.  

He added the increased productivity can provide a small-scale farmer with an annual income between K45,000 and K75,000.

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International Trade

Maru: Carbon Trade Opportunity High

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International Trade and Investment Minister Richard Maru says leading APEC economies are all talking about carbon trade.

He says this is one area that Papua New Guinea must tap into.

“Almost all the top leading economies have mentioned the intention to find ways and expand into the trading of carbon as green revolution is an agenda during the summit in Thailand”, said Minister Maru.

Minister Maru said Papua New Guinea boasts a huge abundance of carbon and trading will be of importance.

“We must not let this opportunity come and go. We must further talk with other APEC nations to finalize agreements and a way forward,” said Maru.

He said not just carbon trading but also to find alternate ways to sustain and replace the carbon that is taken out of our forests and land.

Minister Maru said the APEC Summit in Bangkok has opened more conversation for Papua New Guinea to trade with other APEC nations.

The Trade and Investment Minister said now is the time for PNG to rise and be an active economy in the region.

Meanwhile, Minister Maru said the Association of Southeast Asian Nations (ASEAN) has offered to assist Papua New Guinea with capacity building in the area of international trade based on its vast experience in developing the ASEAN Trade Free Area within its Member States.

This follows Minister Maru’s meeting with the Secretary-General of ASEAN, Dato Lim Jock Hoi during the APEC Meetings.

“ASEAN has offered to run a five-day workshop on Free Trade Agreement negotiations in Port Moresby early next year,” said Minister Maru.

Maru added that ASEAN will especially train PNG staff in the negotiation of each of the three chapters of the Trade Agreement- trade in goods, trade in services, and investments.

They will also include recent developments in green growth and the provision of technical assistance, he added.

“This is a key part of our strategy for PNG to develop our capacity to enter into trade negotiations with ASEAN member states like Indonesia and the Philippines, and even China,” said Minister Maru.

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APEC Economies Keen To Assist PNG

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Prime Minister James Marape says talks with other leading APEC economies have seen keen interest in further development of PNG’s resources.

PM Marape made these remarks upon his arrival in Port Moresby from the APEC Summit in Bangkok Thailand.

“I want to let the country know that Papua New Guinea is on the verge of expanding more bilateral agreements in trade and business. There is an opportunity never seen in the past APEC meetings”, said PM Marape.

“We not only talking about trade and business but also in energy generation and its sustainability,” said the Prime Minister.

He added that more leading APEC economies now understood the development agenda of the Marape-Rosso Government. “We are bringing to the table our challenges and possible solutions to improve our local economy”, PM said.

The Prime Minister said talks with the United States concluded with a keen interest in developing PNG’s fisheries sector. “We are not looking at just exporting our products but allowing for downstream processing”, said PM Marape.

He further said that his bilateral meeting with China was also welcomed by the Chinese President with China committing to buy and produce in Papua New Guinea.

“I am satisfied that our attendance at the APEC Summit in Bangkok has achieved more. The Government will continue its intervention programs to support people and Provincial Governments to ensure benefits reach rural communities,” said Marape.

The Prime Minister added that France, Canada, and Japan including close neighbors Australia and New Zealand have also pledged to extend more cooperation in business and trade.

PM Marape concluded his reflection following the APEC Summit that people must now assist by tapping into agriculture and business.

“I urged all citizens to get their hands dirty and contribute by farming their land. If a family can produce more, this means more income and adds value to the growth of our economy,” said PM Marape.

Meanwhile, the Prime Minister said unlike before, there are more opportunities for Papua New Guinea to access markets in APEC member countries.

“I can guarantee you all that there is more market available for our products, it’s our we can convert to finished products and trade with other nations,” said Marape.

The Prime Minister said more dialogue with other APEC economies will eventuate in 2023 to bind trade and business agreements so we can develop our people and nation.

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Family Planning Method in Remote Areas

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Family planning services including vasectomy are crucial for families to better plan for the number of children they want to have.

Many men who want vasectomies live in remote areas where it is difficult to access health services. When an outreach team arrives in a village, men and women from neighboring villages will walk long distances to access family planning services. 

Teams set up their mobile sterilized rooms and start the day by providing education and peer counseling sessions with clients before assisting couples with their family planning needs. 

The following is a story of one such outreach conducted by Marie Stopes PNG.

As the last couple leaves the room, Joseph Mondo stands at the corner of the makeshift outreach site. Joseph stays for a good 10 minutes, then sees a group of men approaching as silhouettes against the fading rays of the sun.

“Mipla laikim vasectomy but planti manmeri stap na mipla no kam,” (We want vasectomies but there were too many people around, so we did not come).

As Joseph has done many times before, he tells the group he will attend to them after his other team members have left, so he can maintain the men’s privacy.

After everyone has left, Joseph sits down with the men to talk to them about family planning, sexual reproductive health, and vasectomies – the procedure, the expected effects, and the benefits – so they understand what is involved before making their decisions.

Joseph Mondo – or Joe as he is known by locals across the Highlands region – is an outreach nurse and a trusted vasectomy provider. Joe has been serving Highlands communities as an outreach officer with Marie Stopes PNG since 2009.

A vasectomy is a permanent male contraceptive method to help couples plan their future when they are sure they do not want any more children. Vasectomies are safe, have no known health risks, and are 99.95 percent effective in preventing unwanted pregnancies.

“I am a non-scalpel vasectomy provider and I provide this service to men who do not want to have any more children,” says Joe.

“One by one they would come in. I work into the night until the last person leaves. Then I wait around until there was no one else and then I would pack up for the night,” he says.

Joe and the team provide these vital services to their clients in each community they visit, as it might be several months before they visit each village again.

Joe has many happy clients who are assisting him and the outreach team members to spread the word to men in their communities.

“I get phone calls from men in every part of the Highlands where there is a need for this vasectomy service, but I am only one man and can only go one village at a time,” he says.

In the last twelve months, Marie Stopes PNG has implemented 1,684 mobile outreach clinics reaching 125,184 people and delivering over 2,123 vasectomies across Western Highlands, Morobe, Central, Madang, Simbu, NCD, Eastern Highlands, and East New Britain provinces.

With funding support from the Australian Government, Marie Stopes has been implementing family planning and sexual reproductive health services under the Partnering for Strong Families project in Papua New Guinea.

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Namah Commends Government

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Vanimo-Green MP Belden Namah has commended the Marape-Rosso Government for delivering on its commitments made to the people of West Sepik Province.

Namah made these comments last week when a government delegation led by Ministers Rainbo Paita and Solan Mirisim were in Vanimo to launch the Sepik Coastal Highway Project and deliver funding for other projects in the province.

“I have helped formed governments when I was in the opposition, and in the last 12 years I have not seen any deliver on their commitments,” Namah said.

Funding of K53million was paid to the Provincial and District Treasuries for road projects and two hospital projects.

Out of the K53million, Nuku and Telefomin received a K10million each to construct two level 4 district hospitals. The remaining K33million will be put to improve road links between Aitape, Nuku, and Vanimo.

Namah added these investments will lead to more prospects for the province as it aims to fully utilize the PNG-Indonesian Border for more opportunities.

“For provinces to prosper, there must be government enablers, and this major investment is the right way to achieve this. I am with this government for taking development seriously,” Namah said.

The MP also announced that scoping for a Vanimo Hydro, Water, and Sanitation project has already started, and funding to deliver this project will be captured in next year’s national budget.

This also includes the Vanimo International Wharf project and the long-debated Vanimo Special Economic Zone Concept.

West Sepik Governor Tony Wouwou, Finance and Planning Minister Rainbo Paita, Works and Highways Minister Solan Mirisim, and Vanimo-Green MP Belden Namah during the launch of the Sepik Coastal Highway Project in Vanimo.
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Funds For Major Projects in West Sepik Province

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Finance and Planning Minister Rainbo Paita announced yesterday in Vanimo that the National Government is committed to delivering major projects in West Sepik Province.

Officiating the launch of the Sepik Coastal Highway, Minister Paita announced funding of key projects for the Province.

This includes major road works between Vanimo and Green River Station, the construction of the Vanimo International Wharf, and the upgrade of health facilities in Nuku and Telefomin District.

The Minister also presented funding for these projects;

  • K3million – Bewani to Imbio Road Sealing
  • K2million – Aitape to Lumi Road Sealing
  • K3million – Nuku to Aitape Road Sealing
  • K3million – Telefomin District Road Sealing
  • K3million – West Sepik Provincial Road Projects
  • K10million – Nuku Level 4 Hospital Upgrade
  • K10million – Telefomin Level 4 Hospital Upgrade.

Vanimo-Green MP Belden Namah commended the Marape-Rosso Government for recognizing West Sepik in these major projects.

“Many past PMs have made commitments only and not delivered. This is the 1st of its kind for West Sepik and my people of Vanimo,”

“I see this Government is serious about developing PNG, and West Sepik is grateful to receive such investment,” Namah said.

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