Prime Minister James Marape said Papua New Guinea’s economy is strengthening, citing a sharp increase in government revenue over the past seven years, and reiterated that the government will not enter into resource agreements that undervalue national assets.
Marape pointed to verified data showing that tax revenue has nearly doubled since 2018, the last full budget year before his administration took office.
“In 2018, Papua New Guinea collected total tax revenue of K9.7bn, of which mining and petroleum contributed only K775m,” he said, noting that major projects such as the Porgera Gold Mine and PNG LNG were fully operational at the time.
“By 2025, total tax revenue has increased to K17.064bn—almost double. Mining and petroleum tax alone has risen to K4.137bn,” he added, saying this reflects stronger economic activity and improved compliance.
“This shows the economy is growing, the revenue base is expanding, and improvements in compliance and governance are delivering results.”
Budget expansion signals growth
Marape said overall government revenue, including grants and other income, has also risen significantly.
“In 2018, total budget revenue stood at around K14bn. By 2025, this has grown to approximately K25bn,” he said, adding that this indicates the economy “is not in decline—it is strengthening”.
Growth without new mega-projects
Marape emphasised that the revenue gains have been achieved ahead of new large-scale resource developments.
“Even without Papua LNG and Wafi-Golpu, we have grown internal tax revenue from K9.7bn to over K17bn,” he said.
He attributed this to economic diversification, particularly in agriculture and construction, alongside tighter tax enforcement.
“We are tightening compliance and ensuring that everyone who should pay tax is paying tax. This is part of building a fair and responsible economy,” he said.
Firm stance on resource negotiations
Marape said the government remains committed to progressing Papua LNG and Wafi-Golpu but will not finalise agreements that compromise national interests.
“We want these projects to proceed, but not at the expense of our national interest,” he said, adding: “We are not asking for anything beyond the law—we are insisting on what Papua New Guinea is entitled to.”
He said the government is targeting agreements that would secure around 55% of total project benefits for the country over their lifespan, consistent with Pangu Pati policy.
“These agreements will bind future governments, so we must get them right,” he said.
Marape added that if investors are unwilling to proceed under these terms, the government is prepared to seek alternative partners or strengthen legislation to protect national interests.
Assurances to stakeholders
Marape also reassured landowners and provincial governments in Gulf and Morobe that obligations—including infrastructure and business development grants—will be honoured.
“We will continue to work closely with landowners and provincial governments as we conclude discussions with project developers,” he said, adding that “our people must benefit fairly from the resources on their land”.
Domestic resilience underpinning outlook
Beyond the resource sector, Marape pointed to strong performance in the domestic economy, including the financial sector, as evidence of broader resilience.
“Our banks, superannuation funds and local businesses are performing strongly. This growth is not dependent on new LNG or mining projects—it is being driven from within the economy,” he said.
He added that since 2019 the government has prioritised expanding agriculture, fisheries and other sectors to reduce reliance on extractive industries. "The country is growing," he said.
Marape sought to reassure the public on the country’s economic trajectory.
“Papua New Guinea is not in crisis. The country is not dying. The country is growing,” he said.
“We will continue to grow the economy, expand revenue, and invest in education, health, infrastructure and law and order.”
He added that future agreements would be structured to ensure long-term, equitable returns. “We will ensure that every agreement we sign delivers a fair and lasting return for our people.”
