Special Economic Zone Policy set to launch

Prime Minister James Marape will officially launch the country’s first Special Economic Zone [SEZ] Foundation Policy [2025-2032] this Sunday at the APEC Haus in Port Moresby.

Minister for International Trade and Investment [MITI], Richard Maru said the policy follows after the passing of the SEZ Act 2019.

“Usually you formulate the policy first and then you pass the legislation and the legislation is framed along what's in the policy, but in the case of the SEZ Act, it wasn't framed along a policy framework, which is the opposite way around. It was enacted in 2019 without a policy, so there are many loopholes in the legislation because the policy did not cover many of the areas which are critical in the legislation,” Maru said.

Minister Maru said the policy is important as it will define what SEZs are and the different types of SEZs.

“It will outline how to apply for a license and the different types of licenses. It will also tell you the types of industries that can be located within SEZs and the incentives that are going to be provided for investors to locate within SEZs.”

Maru also added that the policy will also talk about the various fees that would be charged by the SEZ Authority to those who are primary locators or investors within SEZs and those who are locators within the various SEZs in the country.

He said: “Since the passing of the Act in 2019, the country has only one license, SEZ, which is the Paga Hill SEZ, where you have seen the first building starting and about to be completed, a 22-story residential apartment. Now we see the Paga Hill Casino, which is under construction, which will be open in October.

Meanwhile, Minister Maru urged the investors and provincial governments to attend the launching and also participate in the asking questions to understand more on the concept.

He said: "PNG has been independent for 50 years. This year is a very special year. It is the year of jubilee when we are going to review our past and talk about our future.

“We can't keep doing the same business and run the country the way we've been running it and expect a different outcome. We are really struggling as an economy. And I repeat myself, the reason is we fail to build a big enough economy which will generate enough revenue to cater for our needs.

“So this policy, as far as I'm concerned, is the most important policy since independence.

“And we are launching it in the 50th year. We are going to change the direction of our country through this policy and we are going to amend the Act. This is where the jobs are. This is where the downstream will happen. So this policy is very, very critical.” Maru added.