Papua New Guinea will gain access to approximately $163 million in new financing after the Executive Board of the International Monetary Fund approved reviews of the country's lending arrangements under its ongoing economic reform programme.
The IMF said completion of the sixth review of Papua New Guinea's Extended Fund Facility and Extended Credit Facility arrangements will provide immediate access to about $82 million. The completion of the third review under the Resilience and Sustainability Facility will make a further $81 million available.
The EFF and ECF programmes were approved in 2023 to help Papua New Guinea address a prolonged balance-of-payments problem that has contributed to foreign exchange shortages and constrained economic activity.
Meanwhile, the 24-month Resilience and Sustainability Facility, approved in 2024 with funding of SDR 197.4 million, is designed to address climate-related risks to balance-of-payments stability and strengthen the country's long-term economic resilience.
The IMF said Papua New Guinea met all quantitative performance criteria and indicative targets through the end of December 2025, as well as all indicative targets through the end of March 2026 under the EFF and ECF arrangements.
All six structural benchmarks scheduled under the programme were also achieved, although some measures were implemented later than originally planned.
The latest disbursement comes as Papua New Guinea continues to implement a broad programme of economic reforms aimed at improving fiscal management, strengthening macroeconomic stability and supporting sustainable growth.
According to the IMF, the country's economy has remained resilient despite external pressures and domestic challenges, with growth supported by both the resource and non-resource sectors.
The institution noted progress in fiscal consolidation efforts and reforms designed to improve the functioning of the foreign exchange market, while emphasizing the importance of continued implementation of the reform agenda.
The IMF projects Papua New Guinea's economic growth will moderate to 3.8% in 2026 from an estimated 5.6% in 2025. Headline inflation is expected to increase modestly to 4.8% in 2026, with higher import costs partly offset by the extension of goods and services tax relief measures through the end of the year.
The additional funding is expected to support government efforts to address foreign exchange shortages, strengthen public finances and bolster foreign reserves.
Business groups have long identified access to foreign currency as a key constraint on investment and private-sector activity, particularly for companies dependent on imported goods and equipment.
The funding also comes as Papua New Guinea seeks to attract new investment into strategic sectors including mining, energy, agriculture, infrastructure and digital connectivity.
The IMF said continued reforms will be important to maintaining economic momentum, strengthening resilience against future shocks and supporting inclusive growth. It also highlighted the need for ongoing improvements in governance, public institutions and economic management.
The latest disbursement is expected to provide additional confidence to investors and development partners as Papua New Guinea advances major resource and infrastructure projects and pursues broader economic reforms.
