Minister of Finance Prof Biman Prasad emphasized that deeper and more meaningful regional integration is essential for the economic transformation of the Pacific, following the recent Forum Economic Ministers Meeting (FEMM) held in Suva by the Pacific Islands Forum Secretariat.
At a press conference after the meeting, Prof Prasad noted that this integration is crucial for achieving sustainable and resilient economic growth, with climate finance being a vital aspect. He outlined that the topics discussed during the meeting included the Pacific Roadmap for Economic Development (PRED), climate finance, the Pacific Regional Facility (PRF), and labor mobility. A key takeaway was the necessity for Pacific Island nations, along with Australia and New Zealand, to collaborate more effectively in their regional integration efforts.
During the meeting, ministers agreed to have Tonga host the new PRF, which aims to enhance economic resilience in Pacific Island countries, especially against the backdrop of climate change and natural disasters. PIF Secretary General Baron Waqa commented that the financing facility was thoroughly debated and that the consensus reached on PRF issues was encouraging.
Waqa stated, “The PRF is our own. This PRF will provide funds that we can easily access.” The PRF, which has been restructured and redesigned, was previously endorsed by FEMM ministers and is now aligned with post-COVID geopolitical realities to attract investments related to climate and disaster readiness.
FEMM chairman and Tonga’s Minister of Finance Tiofilusi Tiueti revealed that the framework for the PRF is finalized, having attracted approximately $112 million in funding so far, with a target of $500 million. The meeting produced recommendations that will be presented at the upcoming PIF Leaders’ Forum in Tonga later this month.