According to the Central Bank’s March Monetary Policy Statement, the Bank is urging the Government to introduce relevant policies and legislation to
According to the Central Bank’s March Monetary Policy Statement, the Bank is urging the Government to introduce relevant policies and legislation to change the arrangements under which the extractive resource sector operates.
“These include enactment of the Production Sharing Arrangements Bill, which will ensure the State gets its revenue share upfront rather than after profits are declared,” stated Acting Governor of BPNG Benny Popoitai.
He said it should also include strengthening the capacity of State regulatory agencies and passing other related legislations.
The Central Bank has also emphasized that the Government should ensure its SOEs in the extractive industry are properly set up to operate commercially as a contractor with proper governance, transparency and accountability framework.
“The revenue and foreign exchange generated from the extractive sector can be used to develop the non-resource sector, especially the AFF sector, through the budgetary process.
“The Government should also expedite the reforms to the SOEs (non-mineral sector) to improve efficiency in service delivery and revenue generation,” said Mr Popoitai.
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