Barker describes the fall in kina

Recent financial reports of Kina, weakened against the major trading currencies, has sparked widespread debates over rising prices for everyday goods, with ordinary families now forced to dig even deeper into their pockets.

An economist and Director of the Institute of National Affairs, Paul Barker, described the fall in Kina.

"It's a very strange scenario for PNG because PNG has one of the world's most substantial trade surpluses, we export more than we import, and yet our market perception is one which has been pushing the Kina down." Barker said.

Barker told this newsroom the depreciation of Kina is good for exporters, bringing in more local currency, boosting incentives and competition.

"A weak Kina has also contributed to higher costs of living, and that's a problem both for businesses and for households." He said.

He says smarter moves by the government to improve governance, tackle corruption, and deliver services can turn PNG's economic situation around.

"If the government is consistent in policy and is effective in delivering basic infrastructure and public goods as essential utilities like power, water, it will bring confidence to investors." Barker said.

Meantime, Prime Minister Marape says they are aware of the economic impacts and is taking necessary steps to restore fiscal credibility through strong budget discipline and improving revenue performance.

The Prime Minister's optimistic the future looks promising for the country.