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Parliament Sitting | Live | Tuesday 2nd June 2026
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Viewers interested in national governance, economic policy debates, and infrastructure project accountability in Papua New Guinea.
TL;DR
This parliamentary session features a prayer, welcome to various delegations including Bogenville representatives and students, and a question-and-answer period. The Treasurer addresses concerns about currency depreciation, inflation, and export performance, while another member questions the awarding of infrastructure contracts to a foreign company over local contractors.
Key Takeaways
- The depreciation of the Kina under an IMF economic reform program has led to import inflation, eroding household incomes and making foreign currency purchases more expensive.
- A key question is whether the IMF reform policy has genuinely increased export volumes or if observed increases are merely due to higher commodity prices.
- Concerns exist about capital flight from PNG as investors may doubt the long-term consequences of the IMF economic reforms, leading them to move capital offshore.
- There are suspicions that increased currency trading volume might stem from investors cashing out and repurchasing Kina to profit from depreciation, rather than reinvesting domestically.
- A specific infrastructure project, the Borum airport redevelopment, was awarded to a foreign company that allegedly failed to deliver, despite subsequent issues with the airport's functionality.
- Another significant road project, the Pasam to Mapri highway, was awarded to the same foreign contractor despite local contractor recommendations and Australian government funding withdrawal.
- Questions are being raised about why local contractors were overlooked for smaller infrastructure jobs, contradicting the Prime Minister's stated policy of prioritizing local businesses for contracts under 10 million kina.
- The government is being urged to review and potentially retender the Pasam to Mapri highway contract due to alleged non-performance by the awarded foreign company and the withdrawal of Australian funding.
In This Video
- 11:40Opening Prayer and Bogenville Affairs
The session begins with a prayer, acknowledging shortcomings and seeking divine wisdom for decisions regarding Bogenville affairs.
- 13:50Welcome to Dignitaries and Students
Parliament acknowledges guests including Bogenville government representatives, civil society, chiefs, and university and school students.
- 15:09Question Time Begins
Question time commences with the member for Kunda addressing the Treasurer regarding economic reforms and currency depreciation.
- 15:32Impact of Kina Depreciation
Concerns are raised about import inflation and increased costs of foreign currencies due to the Kina's depreciation under IMF reforms.
- 16:58Questions on Export Performance
The member questions the Treasurer on successful export increases in similar economies and the actual quantity increase of PNG's exports.
- 18:00Capital Flight Concerns
Inquiries are made about the balance of payments and whether businesses are moving capital offshore due to doubts about economic reforms.
- 19:12Treasurer's Response on Economy
The Treasurer addresses export earnings, balance of payments, and foreign exchange reserves, promising further details on specific economic examples.
- 22:20Concerns Over Highway Contracts
A member raises issues about a Chinese company failing to deliver on airport and highway projects, questioning the exclusion of local contractors.
Questions & Answers
What is the current state of PNG's economy after the kina's depreciation?
The kina's depreciation has led to import inflation, increasing costs for households and businesses. While the theory suggests this would boost exports, the actual increase in export quantity is questioned, with observed increases attributed to higher commodity prices.
Have exports increased due to the IMF program and kina depreciation?
The treasurer stated that export earnings were 51 billion kina in 2022, 46 billion in 2023, and 51.7 billion in 2024. Record levels are expected for last year, but the increase is attributed to higher commodity prices, not necessarily the depreciation itself.
What is the status of PNG's balance of payments and capital accounts?
The balance of payments was 2.88 billion kina in 2022, dropped to 199 million in 2023, and increased to 238 million in 2024. The current account saw a record 18.4 billion in 2024. Foreign exchange reserves grew to over 14.6 billion kina by the end of 2024.
Why were local contractors not considered for the Borum airport and Pasam to Mapri highway projects?
The member questioned why local contractors were overlooked for contracts under 10 million kina, especially for the Param and Kin projects, and why a foreign company with a history of non-delivery was awarded the 83 million kina Pasam to Mapri highway contract.
Will the Pasam to Mapri highway contract be reviewed and retendered?
The member asked if the minister would review the 83 million kina Pasam to Mapri highway contract, which was awarded to a Chinese company despite a local contractor being recommended and the Australian government withdrawing funding.
What is the government's response to the failure of China Shenyang International on infrastructure projects?
The treasurer acknowledged questions regarding infrastructure projects and stated that for the fourth question on currency trading, he would provide a detailed written answer. Specific details on the China Shenyang International contracts were not fully addressed in the provided transcript.
Key Terms
- Kina Free Float — A policy allowing the national currency (Kina) to be determined by market forces, leading to potential depreciation against other currencies.
- Import Inflation — A rise in the general price level of goods and services within a country, caused by an increase in the cost of imported products.
- Balance of Payments — A record of all financial transactions between a country and the rest of the world, including trade, income, and financial transfers.
- Foreign Exchange Reserves — Assets held by a country's central bank, denominated in other currencies, used to back its liabilities and influence monetary policy.