A significant regional integration is essential for economic transformation in the Pacific, according to Finance Minister Prof Biman Prasad, following the conclusion of the Forum Economic Ministers Meeting (FEMM) last Friday in Suva, hosted by the Pacific Islands Forum Secretariat.
During a press conference after the meeting, Prof Prasad emphasized that a deeper integration would influence the speed at which the region can accomplish its agenda for sustainable and resilient economic growth, particularly highlighting the importance of climate finance.
The discussions covered various topics, including the Pacific Roadmap for Economic Development (PRED), climate finance, the Pacific Regional Facility (PRF), and labor mobility. A major focus was the need for Pacific Island nations, alongside Australia and New Zealand, to strive for a more profound and effective regional integration.
The ministers at the meeting reached a consensus to designate Tonga as the host for the new PRF, aimed at enhancing economic resilience in Pacific Island nations in light of climate change and natural disasters.
PIF Secretary-General Baron Waqa noted that discussions regarding the financing facility were productive. He expressed satisfaction that the meeting concluded with an agreement on the various issues surrounding the PRF.
“This PRF will be our own, providing accessible funds,” stated Mr. Waqa.
The PRF, in its updated form, received endorsement from FEMM ministers in the previous year. It has been restructured to reflect the post-COVID geopolitical climate, designed to attract funding as an attractive investment opportunity focused on climate and disaster resilience in the Pacific.
FEMM chairman and Tonga’s Finance Minister Tiofilusi Tiueti reported that the framework for the PRF has been established, with approximately $112 million already secured. The goal is to reach $500 million, and the meeting has made recommendations to present at the upcoming PIF Leaders’ Forum in Tonga later this month.