Monday, March 4

CoNEP urges the government to streamline payment to suppliers, only the construction sector owes $300 million

The National Council of Private Enterprise (CoNEP) urged the government to streamline its public investment program, and streamline the process of paying suppliers to inject more liquidity into the economy, especially since only three of the fourteen categories of economic activity identified by the country’s gross domestic product (GDP) reflected a positive performance according to official figures at the end of the third quarter of 2021.

Only in the case of construction projects, The State owes some $300 million to different companies affiliated with the Panamanian Chamber of Construction (Capac), which are “very dynamic amounts”, said the newly elected president of that guild, Javier Allen.

The CoNEP considers it vitally important to maintain the dynamics and methodology of the CoHigh-Level Mission for Economic Reactivation, in such a way that the fulfillment and implementation of the forty-three (43) proposals agreed with the government oriented to the generation and protection of more than 200,000 jobs can be guaranteed.

He expressed his concern because the country currently faces serious challenges in the labor market, a high unemployment rate at the national level that reaches more than 222,000 people with high youth unemployment that represents half of the unemployed today, a drop in private formal employment by almost 30%, and a growing informality that today is around 700,000 workers.

Within the process of economic reactivation proposed by the CoNEP, several proposals based on establishing the necessary conditions to maintain the country’s competitiveness and the attraction of foreign investment direct; Among these was the establishment of a strategy and specific actions to confront the discriminatory lists in which the country is currently included. CoNEP makes an important call to the authorities to intensify efforts to get off these lists.

En regarding the increase in Covid-19 infections, the CoNEP pointed out that as a private sector it confirms its commitment to work according to the strict compliance with biosafety protocols and the established vaccination schedule by the authorities, aimed at preventing the spread of the virus and protecting the health of our collaborators.

For it, maintains awareness and teaching campaigns on the importance of complying with these measures, and protect the opening of our economy, counteract the negative effects that have been generated as a result of the pandemic and guarantee the start of the school year safely and in person.

As for the Social Security Fund, andl CoNEP reiterated that in the face of the unsustainable situation faced by the Disability, Old Age and Death Program (IVM) of the CSS, it is necessary to proceed immediately with the concrete actions that definitively allow the financial sustainability of the program to be achieved in the long term.