Papua New Guinea’s foreign exchange (FX) market remained active in the third quarter of 2025, with total market turnover reaching K16.2 billion (approximately USD 3.86 billion).

According to BSP Financial Group Limited's (BSP) September Quarter Economic and Market Update, this represented a 9% increase compared with the same period last year, supported by sustained FX inflows from the mining and agricultural sectors.

BSP Group General Manager – Treasury & Markets Rohan George said market activity remained firm throughout the quarter.

“Foreign exchange inflows moderated from July highs, which led to longer processing times in August and September as new FX orders outpaced available liquidity,” he explained.

The Bank of Papua New Guinea (BPNG) intervened in the FX market during August and September, after remaining inactive in July, to help ease liquidity pressures. During the quarter, the Kina depreciated by 1.6% against the US dollar to 0.2388, and by 2.3% against the Australian dollar to 0.3621.

George noted that while inflows from the agricultural sector are expected to ease, stronger performance in the mining sector—particularly gold—could partly offset this decline.

“Looking ahead, FX inflows from the agricultural sector are expected to soften, reflecting the delayed impact of recent commodity price declines — for instance, cocoa prices have fallen by 46%. However, this is likely to be partly offset by stronger, though uneven, inflows from the mining sector, particularly gold,” Mr George said.

He added: “While the FX market continues to navigate a challenging environment, BSP encourages customers to submit FX orders early to avoid delays. We remain committed to supporting our clients through proactive liquidity management and market insights.”

Global risks remain elevated, with the potential re-emergence of US–China trade tensions and subdued global economic conditions posing headwinds for PNG’s export performance and FX inflows.

The BPNG is expected to maintain a measured, wait-and-see approach to market interventions, stepping in only if pressures intensify.

BSP, formerly the Bank of South Pacific Limited, is a leading retail and corporate banking group headquartered in Papua New Guinea. Established in 1957, BSP operates in seven Pacific countries.

It has the largest branch network across Papua New Guinea, Cook Islands, Fiji, Samoa, Solomon Islands, Tonga, and Vanuatu, employing more than 4,000 people throughout the region.

BSP remains committed to its corporate and social responsibility initiatives, proudly partnering with communities across the Pacific to create positive change. Its extensive branch network is supported by a sophisticated electronic banking system, ensuring customer access wherever the bank operates.

BSP operates across the Pacific as follows:

• Over 120 branches
• More than 300 agents
• 550 ATMs (and growing)
• Upwards of 11,000 EFTPoS machines

BSP serves the corporate sector with leading cash management, treasury, lending, and corporate finance solutions. The bank combines local expertise with deep regional experience to deliver financial services that support businesses and communities across the Pacific.

Four Westpac employees recently represented Westpac PNG at the Westpac Group Youth Network (TYN) Summit in Sydney, Australia, reinforcing the bank's commitment to fostering youth leadership and driving positive change in communities across Papua New Guinea.

Corporate Affairs and Marketing Officer, Melanie Yumbrick; Staff Lending Manager, Fabian Aime; Business Analyst, Marsha Isaac; and Operations Officer, Florian Whemby, attended the summit, which brought together over six hundred young professionals from across Fiji, Australia, and New Zealand under the theme "Agents of Change" to explore how they can make meaningful impacts in their workplaces and communities.

The Youth Network is one of Westpac's Employee Advocacy Groups (EAGs), bringing together younger employees under the age of 35 to connect, learn, and give back to their communities.

"Attending the TYN Summit was an amazing opportunity to meet other young people who want to make a real difference," said Fabian Aime, one of the Westpac PNG attendees.

"The 'Agents of Change' theme really hit home for me. It showed us that no matter what job we do, we can all help create positive change at work and in our communities," he said.

The summit included guest speakers, a hands-on shadowing program, and chances to meet others who share a passion for creating change.

The Shadowing Program allows TYN members to buddy with other EAG members, offering firsthand exposure to workplace culture and leadership. It’s a powerful way to build confidence, gain insights, and grow professionally through real-time learning.

Beyond the summit, the Westpac PNG Youth Network has been active in the community this year, with members taking part in community day and beach clean-up activities, demonstrating their commitment to environmental care and local action.

Westpac PNG Chief Executive Andrew Cairns praised the initiative, saying: "Our people are what make Westpac strong, and employee advocacy groups like the Youth Network show our commitment to supporting the next generation of leaders. We want our employees to be themselves at work, to learn, grow, and make a real difference. These young people show what it means to be an agent of change, and I'm proud to see them taking part in this summit."

During the summit, the four Westpac employees spent time networking with other young people from across the region, building connections and sharing ideas. A memorable highlight of their experience was learning about the Westpac Lifesaver Rescue Helicopter Service, a life-saving program that Westpac has proudly supported since 1973.

Westpac is about creating a workplace where people can succeed both professionally and personally, with opportunities to grow, do meaningful work, and make a difference in the lives of customers and communities.

The Westpac PNG Youth Network continues to play an important role in connecting Westpac's younger employees, encouraging new ideas, and making sure different voices contribute to shaping the bank's future.

South Bougainville is entering a new era of progress and energy transformation as the Autonomous Bougainville Government (ABG) moves forward with a series of high-impact infrastructure projects and the launch of the Buin Solar Farm and Innovation Hub. These landmark developments reflect Bougainville’s vision of a self-reliant, resilient, and inclusive economy driven by sustainable energy and local empowerment.

Transforming South Bougainville through Infrastructure

The ABG has prioritised South Bougainville as a critical growth corridor, recognising its strategic potential as a hub for trade, connectivity, and renewable energy. A suite of infrastructure projects is now underway across Buin, Siwai, and Bana districts, aimed at improving access, supporting economic activity, and strengthening community resilience.

Among these initiatives are key road upgrades, bridge construction, and the rehabilitation of essential community facilities. These efforts are designed not only to enhance mobility and service delivery but also to catalyse private sector investment and local entrepreneurship.

Local contractors have been engaged under the Government’s localisation and employment strategy, ensuring that the benefits of development remain within the region. Communities across South Bougainville have responded with optimism, viewing these projects as tangible signs of progress toward the ABG’s long-term development aspirations and its overarching goal of achieving economic independence.

The infrastructure drive also supports the ABG’s focus on decentralisation and rural empowerment. By investing in reliable access roads, electricity, and communications, the Government is creating a stronger foundation for sectors such as agriculture, fisheries, and tourism—industries with high potential for export and sustainable income generation.

Buin Solar Farm and Innovation Hub: Powering a Sustainable Future

Complementing these infrastructure efforts is the newly launched Buin Solar Farm and Innovation Hub—a pioneering project that signals Bougainville’s commitment to renewable energy and innovation-led growth. The solar farm, located in the heart of Buin District, is designed to provide reliable, clean electricity to households, schools, and businesses that have long relied on costly and inconsistent power sources.

The project was unveiled in a ceremony attended by ABG officials, technical partners, and community leaders, who hailed the initiative as a milestone in the region’s transition to sustainable energy. The Buin Solar Farm not only demonstrates the Government’s commitment to reducing carbon emissions but also strengthens energy security for rural communities.

At the core of the project is the Innovation Hub, an educational and research facility that will serve as a platform for technology transfer, renewable energy training, and youth entrepreneurship. The hub is expected to host workshops, training sessions, and pilot projects focused on solar maintenance, sustainable agriculture, and digital innovation.

By linking renewable energy with skills development, the ABG aims to foster a new generation of Bougainvillean innovators equipped to drive local industries and create green jobs. The initiative aligns with Bougainville’s broader development framework, which prioritises clean energy, human capital investment, and community-led growth.

Public–Private Collaboration and Long-Term Vision

The implementation of both the high-impact infrastructure programme and the Buin Solar Farm underscores the importance of collaboration between the ABG, local landowners, private investors, and international partners. These partnerships have been essential in mobilising resources, sharing technical expertise, and ensuring that projects are designed and delivered to meet community needs.

Government officials have emphasised that such projects form part of a long-term strategy to achieve energy sovereignty and reduce dependence on external financing. The ABG’s Department of Technical Services and the Department of Mineral and Energy Resources have jointly overseen the coordination of renewable energy planning, supported by technical input from regional experts.

High Commissioner William McDonald Soaki of the Solomon Islands, who recently attended the 2025 PNG Petroleum and Energy Conference in Port Moresby, commended Bougainville’s leadership in renewable energy development. He highlighted that the island’s initiatives could serve as a model for neighbouring Pacific nations seeking to diversify their energy mix and advance sustainable growth.

A Brighter, Greener Bougainville

Together, these initiatives are reshaping South Bougainville’s landscape—literally and figuratively. Roads and bridges are opening up access to once-remote areas, solar panels are lighting up schools and markets, and the Innovation Hub is inspiring young minds to think differently about the future.

The synergy between infrastructure and clean energy investment is a testament to the ABG’s pragmatic approach to development: one that balances progress with sustainability, modernisation with local ownership, and ambition with community partnership.

As Bougainville continues its path toward greater autonomy and economic self-sufficiency, projects like these stand as milestones in its journey—a clear demonstration that sustainable development is not only possible but already taking root across the region.

The Mineral Resources Development Company (MRDC) has announced four landmark projects set to transform the economic landscape of Papua New Guinea’s gas-rich Hela Province.

Formalised through key agreements signed in Tari on 17 October, the projects mark a new phase of investment aimed at accelerating development and improving local livelihoods.

The initiatives include a 5MW power supply project from Hides to Tari, the signing and groundbreaking for the Hela Heritage Hotel, the opening of MRDC’s new Tari office, and an annual K1 million funding support from Petroleum Resources Kutubu (PRK) to the Hela Provincial Health Authority.

MRDC Managing Director Augustine Mano said the projects represent a long-awaited milestone in fulfilling the vision of Hela’s leaders and ensuring resource benefits reach the people.

“With ExxonMobil agreeing to provide gas for up to 5MW of power, landowners from the licence area in Hides, Tari town, its surrounds, and other districts of Hela will benefit from the cheapest power in PNG,” Mano said.

“This has been the dream of our leaders like the late Anderson Agiru and Prime Minister James Marape, who was then finance minister when they signed the PNG LNG Gas Agreement in 2009. It has taken a while to deliver because we had to negotiate, but it is finally a reality. I want to thank the leaders involved, and the landowners and Hela people for being patient.”

He said the introduction of reliable and affordable electricity would be a catalyst for further development in Hela.

“Through power, places change. Development happens through investments. Hela will get the cheapest power in all of PNG, and it’s reliable. There will be no blackouts,” he said.

Prime Minister James Marape, who is an MRDC trustee and the local MP for Tari, officiated the groundbreaking for the Hela Heritage Hotel, one of the province’s most significant upcoming investments.

Mano said the hotel, expected to be completed by early 2027, will serve both visitors and locals while promoting and preserving Hela’s distinctive culture.

“The hotel is to be the cultural center of Hela. Hela is beautiful with its unique culture — how do we show it? This hotel will provide the hub so that the culture of Hela must be appreciated, enjoyed, and preserved,” he said.

He added that the Heritage Hotel would create employment, stimulate business opportunities during construction, and complement existing accommodation facilities once operational.

As part of MRDC’s broader social investment, PRK has committed K1 million annually to the Hela Provincial Health Authority to help attract and retain medical professionals.

“We have many good doctors, but they don’t come to the provinces to work because of many challenges, so they must have incentives. This K1 million is their incentive. We have also done the same for Southern Highlands and Gulf provinces,” Mano said.

MRDC also strengthened its presence in Hela with the opening of a new office at the Hela 2 building complex in Tari. The office will handle landowner-related issues locally, reducing the need for travel to Port Moresby.

“The days of landowners flying to Port Moresby to have their issues addressed are over. We now have an office in Tari to deal with all that. I want to encourage landowners to stay in the province, deal with issues here, receive your royalty and equity benefits here, and spend it here so the Hela economy can prosper,” Mano said.

He also commended Hela Governor Philip Undialu for providing strong leadership, improving law and order, and building critical infrastructure to encourage investment.

Through these new initiatives, MRDC aims to position Hela as a province on the rise—one where resource wealth is being converted into tangible economic growth and lasting prosperity.

Nambawan Super Limited (NSL) continues to deliver on its commitment to improving the financial well-being of its Members through its ongoing Financial Literacy Training (FLT) Program, which has reached over 24,500 Members since its inception in 2021.

Through this program, Nambawan Super has conducted Financial Literacy sessions for both public and private sector employers across the country. The sessions are designed to equip Members with practical financial management skills to help them make informed decisions about their money today—while still employed—and to prepare them for life after employment.

The FLT Program focuses on helping Members better understand personal finance, budgeting, debt management, saving, superannuation products and services, retirement planning, home ownership, and financial management for micro, small, and medium enterprises. These sessions are delivered free of charge by Nambawan Super’s Member Education Team as part of the Fund’s broader Member education and empowerment initiatives.

NSL Chief Executive Officer Paul Sayer said the Financial Literacy Program demonstrates Nambawan Super’s continued commitment to supporting Members beyond superannuation contributions and investment returns.

“Our Financial Literacy Program is an important part of helping our Members build confidence in managing their personal finances today while still formally employed, and to start planning for their future in retirement. By equipping Members with the right knowledge and tools, we are contributing not only to their personal financial well-being but also to the broader economic empowerment of Papua New Guineans,” he said.

Since the start of the year, the Fund has delivered over 270 sessions to more than 6,000 Members from NSL employers in both the public and private sectors, including the Department of Education, PNG Ports Corporation, Correctional Services, Civil Fire Services, Milne Bay Administration, Public Health Authority, and Oil Palm Smallholders, among others.

The most recent sessions were conducted with the Office of Censorship and the National Airports Corporation, with strong participation and positive feedback received.

The Financial Literacy Training is offered free of charge to NSL employers and Members, underscoring Nambawan Super’s commitment to nation-building through education and empowerment beyond superannuation savings.

Employers interested in organising a Financial Literacy Training session for their staff are encouraged to contact Nambawan Super’s Member Education Team via the registration form on the NSL website, by calling the toll-free number 180 1599, emailing CallCentre@nambawansuper.com.pg, or visiting their nearest NSL Branch.

Prime Minister James Marape has congratulated PNG Ports Corporation Ltd (PNG Ports) for its remarkable performance in the 2025 World Bank Container Port Performance Index (CPPI), describing the achievement as a proud moment for Papua New Guinea and a strong indicator of the country’s growing efficiency, resilience, and competitiveness in international trade.

According to the World Bank’s CPPI report, the Port of Lae rose from 311th position in 2023 to 264th in 2025, while the Port of Port Moresby climbed from 280th to 248th. Both ports outperformed several major facilities across developed economies, including Melbourne, Brisbane, Port Botany (Sydney), Auckland, Napier, and Otago.

“These outstanding results are not just statistics; they reflect the steady progress of our nation in managing critical infrastructure, enhancing operational capacity, and building a modern, competitive economy,” Marape said.

He commended PNG Ports’ management, employees, and partners for their leadership and innovation in positioning the country’s ports among the best-performing in the Asia-Pacific region.

The Prime Minister said the improved rankings were the result of strategic investments and partnerships made in recent years, including the introduction of new equipment, advanced port management systems, and digital technologies designed to increase efficiency and reduce turnaround times.

“Through prudent investment and management, PNG is demonstrating that we can compete regionally and globally,” he said. “The operational success of our ports is central to our national vision under the Take Back PNG agenda — to build an economy that is efficient, transparent, and globally connected, creating opportunities for our people and businesses.”

Transforming PNG into a Trade-Driven Economy

Marape said Papua New Guinea’s 50th Independence Anniversary, celebrated last month, marked not only a national milestone but also a strategic reset toward the next 50 years of growth and prosperity.

“As we step into our next 50 years, our focus is clear — we are transforming from a resource-dependent economy into a diversified, trade-driven nation,” he said. “Our ports are the gateways to this transformation, enabling trade, supporting investors, and connecting Papua New Guinea with regional and global markets.”

He added that the Government would continue to support State-Owned Enterprises (SOEs) such as PNG Ports in their efforts to modernise infrastructure, strengthen governance, and expand regional connectivity through smart investments and strong public–private partnerships.

“The success of PNG Ports demonstrates what good governance, commercial discipline, and patriotic leadership can achieve when aligned with national goals,” Prime Minister Marape said. “We will continue working with our development and investment partners across the Asia-Pacific to expand trade, grow exports, and position PNG as a regional hub for shipping and logistics.”

Inclusive Development and National Connectivity

The Prime Minister also praised PNG Ports’ ongoing commitment to maintaining operations across all 15 declared ports, including support for 12 Community Service Obligation (CSO) Ports that connect rural and maritime communities.

“This inclusive approach ensures that the benefits of development reach all corners of our country,” he said. “Even as we pursue efficiency and profitability, we must never lose sight of our responsibility to serve every Papua New Guinean — from our remote islands to our industrial cities.”

Positioning PNG as a Regional Trade Hub

Marape reaffirmed his Government’s commitment to maintaining Papua New Guinea as a stable and attractive destination for investment, particularly within the Asia-Pacific region. He emphasised that sustained economic growth depends on reliable infrastructure, consistent performance, and strategic focus across key sectors.

“Papua New Guinea’s improved global ranking in port performance is a reflection of our broader national progress,” Prime Minister Marape concluded. “We are open for business, ready for investment, and determined to ensure that every sector of our economy — from shipping to agriculture to digital trade — contributes to our shared prosperity.”

Jongho Choi, the Ambassador of the Republic of Korea to Papua New Guinea (PNG), announced that the Korea International Cooperation Agency (KOICA) will establish its office in PNG following his meeting with the Minister for International Trade and Investment Richard Maru on 22 October.

“This is a welcoming news. KOICA is South Korea's government agency for providing official development assistance to developing countries through grant aid and technical cooperation," Maru said. 

The minister said that the PNG government want to see more aid flows between PNG and Korea, noting that they also want Korea Eximbank to be more active in the domestic market as they offer one of the lowest interest rates.

"We have a good record with Korea Eximbank as we repaid our first loan for the Wewak storm drainage project on time, and we want more concessional aid. We look forward to the establishment of KOICA office in PNG and to working with them on grant projects and also development finance,” Maru said.

Both officials also discussed Maru’s possible visit to South Korea to attend the APEC Ministerial Meeting (AMM).

“I will also be meeting a number of potential investors in the two days that I am making available to meet with the private sector in Korea on the margins of the AMM. We are very keen on bringing some Korean investors to PNG,” said Minister Maru.

“I am very happy that the Government of Korea is keen to deepen the relationship with PNG. I welcome that and look forward to working with the Korean Government and a number of Korean investors to invest in PNG, specifically in Special Economic Zones and in the non-resource sectors. Korean companies are also keen to be Engineering, Procurement, and Construction (EPC) contractors in the mining and petroleum sector. We are keen to see more win-win partnerships in line with our new foreign policy of securing partnerships for security and economic prosperity,” he added.

PNG Ports Corporation Limited (PNGPCL) proudly announces the participation of its Chief Commercial Officer Deborah Michelle Onga as a panellist at the 2025 International Association of Ports and Harbors (IAPH) World Ports Conference, held from 7–9 October in Kobe, Japan.

The conference, celebrating the IAPH’s 70th anniversary, gathered more than 200 global port authorities and 170 port-related businesses under the theme “Reinvention and Prosperity in Turbulent Times.” The event brought together international leaders from the IMO, World Bank, UNCTAD, and major global maritime organisations to explore how ports can achieve sustainable growth in an era marked by geopolitical uncertainty, conflict, and climate change.

Maximising the Value of Port Land through Smarter Concessions

Onga was invited as a panellist for the session “Maximising the Value of Port Land through Smarter Concessions,” joining distinguished speakers from Thailand, Chile, and Canada. The discussion focused on how port authorities can structure smarter concession agreements to ensure land is used for its highest economic, operational, and strategic value.

She explained how smarter concessions can transform PNG Ports from a traditional landlord into a strategic asset manager and development catalyst, maximising long-term economic, social, and environmental value for the nation.

Drawing on her leadership of PNG Ports’ commercialisation strategy and its flagship Lae Industrial Park development, Ms. Onga highlighted the company’s ambition to unlock the commercial potential of all 15 of its ports — not only the major gateways of Lae and Port Moresby but also its vital regional ports, including its loss-making CSO ports.

She outlined how improved land utilisation, coupled with a transparent and standardised concession framework, can strengthen investor confidence, ensure governance and integrity, and align with government policy and Kumul Consolidated Holdings (KCH) oversight standards.

Her insights positioned Papua New Guinea as a model for how small developing nations can approach port land management strategically — using concession frameworks that strengthen trade competitiveness, sustainability, and community benefit.

Representing the Pacific at a Global Forum

Onga’s inclusion on the IAPH panel marked a historic milestone — positioning Papua New Guinea at the forefront of Pacific representation on the world stage. While delegates from Fiji, Solomon Islands, and other Pacific nations were in attendance, Onga was the only Pacific voice featured on the official speaker program.

Her participation symbolised a turning point for the Pacific region, which has long been under-represented in global port and maritime discussions. She spearheaded conversations not only for PNG but also for the broader Pacific Islands on how developing economies can transform their ports into engines of national and regional prosperity.

“It was a profound honour to speak for Papua New Guinea and the wider Pacific at such an influential global forum,” said Onga. “For too long, our region’s expertise and perspectives have been overlooked. This opportunity demonstrates that the Pacific has strong, capable voices with real experience to contribute to the global maritime sector.”

She also expressed her appreciation for the collaboration and advocacy of Mike Gallagher, CEO of Ports Australia, whose support helped secure her inclusion on the panel.

“I am sincerely grateful to Mike Gallagher for recognising the importance of Pacific representation and for championing the inclusion of Papua New Guinea. His support ensured our region had a seat at the table — and a voice in shaping the future of global ports,” she said.

Bringing Global Insights Home

Accompanied by PNG Ports Director Ms. Belinda Manning, Onga also gained valuable insights from broader conference discussions centred on how ports can achieve real growth when supply chain resilience is tested by conflict and climate change.

Through networking and dialogue with international peers, Onga and Manning return with key learnings on resilient infrastructure investment, sustainable port innovation, and effective governance frameworks — insights they plan to incorporate into PNG Ports’ future operations, along with a strategy to drive greater Pacific representation and active engagement with the IAPH.

“The knowledge and global connections gained from this conference will help PNG Ports advance its commercialisation strategy and position Papua New Guinea’s ports as regional leaders in sustainability and trade facilitation,” Onga added.

Founded in 1955, the IAPH is a global alliance representing over 200 port authorities and 173 businesses across more than 90 nations. The Association serves as a key platform for collaboration, policy exchange, and innovation among the world’s leading maritime and logistics organisations. The 2025 conference marked its 70th anniversary, reaffirming its commitment to connecting ports and people worldwide.

The 2025 Papua New Guinea Petroleum and Energy Conference (PEC), held from 8–9 October at The Stanley Hotel, marked the nation’s 50th Independence Anniversary under the theme “The Next 50,” a call to shape and reset the next chapter of PNG’s energy future for the coming decades.

The two-day event brought together more than 100 organisations and participants from over 15 countries, creating a strong platform for dialogue, collaboration and investment across the petroleum and energy value chain. The conference featured more than 30 national and international speakers, including industry leaders, policymakers and technical experts who explored emerging policies, upcoming projects and investment opportunities critical to PNG’s evolving energy landscape.

Day One of the conference opened with a keynote address by Dr Fereidun Fesharaki, chairman of FGE and a renowned global energy economist. With a longstanding association with PNG, Dr Fesharaki delivered a comprehensive analysis of global and regional energy trends, highlighting PNG’s strategic role in the Asia-Pacific energy market.

He presented several insights relevant to PNG, noting that:

• Oil’s future is a plateau, with a long-term price range of USD65–80 per barrel.
• Liquefied natural gas (LNG) is the growth story, with demand led by Asia into the 2040s.
• A wave of new LNG supply will emerge from 2026, creating both challenges and opportunities for gas-rich nations.

Dr Fesharaki said the conference’s structure fostered meaningful interaction, particularly through moderated panel discussions that encouraged audience participation during Q&A sessions.

“The PEC has added tremendous value – the quality of dialogue and engagement reflects the importance of these discussions for PNG’s future,” he said.

Duma Reaffirms Power Sector Transformation

The ministerial keynote address on Day Two was delivered by Energy Minister Peter Isoaimo, who set a clear vision to “use today’s oil and gas wealth as a bridge to a renewable future.”

Key points of his address highlighted the country’s preparation for a greener, technology-driven energy landscape, including:

• Investing in youth and renewables for long-term strength.
• Achieving the goal of affordable, sustainable energy for every household by 2075.

The second ministerial keynote was delivered by Minister for State-Owned Enterprises William Duma, MP, who reaffirmed the Marape-Rosso Government’s commitment to transforming PNG’s power sector through the partial privatisation of PNG Power Limited (PPL). He said the initiative aims to improve efficiency, attract private investment and ensure reliable, affordable electricity for all Papua New Guineans.

Minister Duma said this transition marks “a new era for PNG’s energy future,” balancing investment returns with improved service delivery for citizens. He outlined the government’s targets of 70 percent national electrification by 2030 and universal access by 2050, supported by renewable energy development and major infrastructure upgrades.

During his visit to the PNG Business News exhibition booth, Minister Duma told PNG BN that the 2025 PEC is “one of the biggest and most successful conferences to date,” describing it as a vital platform for high-level networking, engagement and discussions on national energy agendas.

Building on the momentum of PEC 2024, this year’s conference expanded both its reach and depth. It offered delegates the opportunity to engage directly with key stakeholders, regulators, investors and project developers, all focused on shaping PNG’s next 50 years in energy and petroleum development.

The 2025 conference also served as an exhibition hub, where sponsors and delegates showcased innovations, products and services driving energy transition, sustainability and infrastructure growth across the country.

PEC 2025 Sponsors and Support

The success of the event was made possible through the support of its sponsors. Kumul Minerals Holdings Limited led as Platinum Sponsor, joined by ExxonMobil PNG, PNG LNG, China Petroleum Pipeline Engineering Co. Ltd, and Winston Engineering Ltd as Gold Sponsors. The National Energy Authority supported as Silver Sponsor, while Kumul Consolidated Holdings, TWL Group, TotalEnergies, Papua PNG, Motor Vehicles Insurance Ltd, Asia Pacific Communication Specialist, High Arctic, Robinson Energy, and Houpu Clean Energy Group Co. Ltd served as Bronze Sponsors.

Through collaboration, policy reform and investment, the discussions held over the two days have laid a strong foundation for the next 50 years — ushering in a new era of growth and transformation for PNG’s petroleum and energy sectors.

The Port Moresby Chamber of Commerce and Industry (POMCCI) hosted a Business Breakfast at the Lamana Hotel on Wednesday, 1 October 2025, featuring PricewaterhouseCoopers (PwC) Papua New Guinea Tax Partners Peter Burnie and Shanol Jokhan, who presented detailed insights on the New Income Tax Act 2025 and shared their professional expertise on the key changes introduced under the new tax legislation.

The two-hour event brought together members of the business community seeking valuable insights into the new tax regime.

According to PwC, the New Act represents a complete overhaul of the country’s tax system, tracing its roots to the Bogan Review of 2015 and subsequent reform commitments under the 2017 Medium Term Revenue Strategy (MTRS).

The new Act is described as the most significant tax legislative change in Papua New Guinea in more than six decades.

Passed by Parliament in March 2025, the Act will take effect for tax years commencing after 1 January 2026. It replaces an outdated framework that has evolved through decades of amendments, aiming to simplify, modernise and consolidate tax provisions.

PwC noted that the Act’s objectives include:
• Simplification and consolidation of existing provisions
• Greater emphasis on self-assessment rather than full assessment
• Alignment with the Tax Administration Act (TAA) for efficiency and consistency

However, PwC cautioned that taxpayers should expect transitional challenges as businesses adjust to the new rules.

Introduction of Capital Gains Tax (CGT)

For the first time in PNG’s history, the New Act introduces a Capital Gains Tax (CGT), effective 1 January 2026.

The 15% CGT applies to gains made on the disposal of taxable assets such as resource rights, related information, membership interests, and acquisition rights.

PwC presenters explained that taxpayers can choose between using the historic cost or market value as of 1 January 2026 as the cost base for these assets.

Capital losses may be carried forward indefinitely to offset future gains. PwC described this as a major structural shift, particularly for investors in PNG’s resource sector, and urged businesses to evaluate how this change will affect their investment strategies.

Changes for Non-Residents

The new Act also introduces major updates for non-resident businesses operating in PNG.

Under the reforms, income earned by non-residents through a Permanent Establishment (PE) will be taxed at 30% on net income, while those without a PE will continue to be subject to Non-Resident Tax (NRT) via withholding.

NRT will apply to income such as dividends, interest, royalties, annuities, insurance premiums and technical fees, with a 15% withholding rate on technical services.

The Act also provides clearer definitions of permanent establishment categories, including consulting, construction and agent-based operations, setting time thresholds for determining tax residency.

Employment and Individual Taxation

PwC highlighted that while tax rates and thresholds remain unchanged, the Act refines the taxation of employment income and employer-provided benefits.

It maintains concessional treatment for housing, motor vehicles, school fees and leave fares but updates valuation methods. For example, vehicle benefits are now based on acquisition cost rather than prescribed value.

The concept of salary packaging is formalised, requiring approval for arrangements exceeding the 40% benefits threshold. Individuals with employment income subject to withholding are not required to file tax returns, although assessments may be raised if employer withholdings fall short.

Corporate and Group Transactions

The Act introduces new provisions for intra-group reorganisations, including rollover relief for asset transfers within corporate groups that have at least 95% ownership, subject to approval by the Commissioner General.

It also allows group loss transfers, aligning PNG more closely with international tax practices.

Dividends between resident companies remain exempt, while dividends from non-resident sources are exempt if the recipient owns at least 10% of the foreign entity.

Depreciation and Fixed Assets

One of the key simplifications under the new Act is the reform of tax depreciation rules. The Act introduces five asset classes with prescribed depreciation rates and allows immediate deductions for assets valued under K1,000.

Pooling is permitted for certain asset classes, and for the first time, taxpayers may claim depreciation on business intangibles such as patents, copyrights and marketing intangibles, typically over ten years.

The Act removes outdated accelerated depreciation incentives but retains some concessions for manufacturing and primary production assets.

Preparing for Implementation

Burnie and Jokhan described the passage of the Act as a “significant milestone for tax reform,” urging businesses to prepare for implementation by reviewing:
• Fixed asset management
• Employment arrangements
• Cross-border contracts
• Operating models for non-resident entities

Although the law takes effect in 2026, PwC noted that complementary regulations, including a revised Tax Administration Act and Income Tax Regulations, are expected before enforcement.

The Internal Revenue Commission (IRC) will also play a key role in ensuring a smooth transition through updated processes and taxpayer guidance.

The POMCCI continues to facilitate such engagements to keep the business community informed about key economic and legislative developments affecting the private sector in PNG.

The breakfast provided an opportunity for business leaders and tax professionals to engage directly with PwC’s tax experts on the implications of the New Income Tax Act and its expected impact on business operations and compliance in the country.

The Marape-Rosso Government has begun the mid-term review of Papua New Guinea’s National Trade Policy (NTP) 2017–2032, aimed at strengthening the country’s trade strategy in response to evolving global and domestic conditions.

The review, spearheaded by the National Trade Office (NTO) with support from the European Union Delegation to PNG, was announced by Minister for International Trade and Investment Richard Maru.

The NTP, first launched in 2017 under the O’Neill Government when Maru was Minister for Trade, Commerce and Industry, is the country’s guiding framework for promoting trade and investment.

Minister Maru said the review was essential to ensure the policy remained relevant and effective.

“PNG’s trade performance and policy implementation over the past eight years need a thorough assessment so successes can be built and shortcomings addressed,” he said.

“The review will help PNG align its trade policy with recent domestic priorities such as the Medium-Term Development Plan 4 and post-COVID economic recovery, and external developments like environmental considerations, new market opportunities in Asia and evolving World Trade Organization rules," he added.

He added that the review would allow PNG to “adopt international best practices, foster stakeholder engagement, and ultimately ensure that trade policy remains effective and relevant.”

The mid-term review will focus on three core areas:

1. A retrospective assessment to evaluate progress, effectiveness, and challenges in implementing the NTP.
2. A prospective assessment to address current and emerging trade issues and recommend strategic adjustments.
3. A review of the Strategic Implementation Plan to integrate findings and align with the new policy direction.

Minister Maru also outlined key issues for the review team to consider, including:

• Shifting from regional to bilateral trade agreements that better serve PNG’s national interests.
• Increasing emphasis on value-added exports and higher export taxes on raw materials.
• Introducing incentives for new export products, including support for certification and meeting international standards.
• Transferring tariff policy functions from the Department of Treasury to the National Trade Office.
• Considering legislation to improve the ease of doing business and ensure clear land titles for large-scale Special Economic Zone (SEZ) projects.
• Exploring measures to strengthen the kina, such as establishing a gold refinery and building national gold reserves.
• Leveraging artificial intelligence to facilitate trade and investment.
• Developing a new electronic Single Window System to replace the manual trade facilitation process.

The NTO will lead the review process, but Maru underscored the importance of wide-ranging consultations.

“The private sector and SMEs are being consulted to understand the on-the-ground impacts of the trade policy and persistent business barriers,” he said. “Civil society and academic experts can offer insights on inclusiveness like the impacts on small farmers or women traders and provide evidence-based critiques.”

He added that the review was an opportunity to realign the NTP with current realities, ensuring that its strategies remain “fit for purpose in the face of climate change impacts, advances in information technology, commodity price fluctuations, potential global trade disruptions due to US tariffs, and shifting investment patterns.”

The draft of the new National Trade Policy is expected to be presented to Minister Maru and the National Executive Council by October 15, 2025, for approval ahead of its official launch later this year.

Economic growth in the Pacific is expected to pick up next year, buoyed by strong resource output in Papua New Guinea (PNG), according to the Asian Development Outlook (ADO) September 2025, released on 6 October by the Asian Development Bank (ADB).

The report projects Pacific economies to expand by 4.1 percent in 2025, before moderating to 3.4 percent in 2026, an upward revision from the April forecast. The ADB attributed the improvement mainly to the mining and petroleum-driven performance of PNG, the region’s largest economy.

“While it is good news that growth will accelerate in the Pacific subregion this year and inflation forecasts are adjusted down, geopolitical and trade tensions still pose risks to growth,” said ADB Director General for the Pacific Emma Veve. “ADB remains committed to helping build resilience to potential shocks such as extreme climate events and disruptions to global supply chains.”

PNG’s economy is forecast to grow by 4.6 percent in 2025, before easing to 3.6 percent in 2026 as output from major resource projects stabilizes. Inflation projections remain unchanged. The report said that new investment decisions in mining, petroleum, and related sectors could provide an additional boost to growth.

In Fiji, the Pacific’s second-largest economy, growth is forecast to remain steady at 3.0 percent in 2025, but to slow in 2026 due to the indirect impact of United States tariffs on its key trading partners. Inflation is expected to ease over the next two years as fiscal measures and lower global commodity prices help reduce consumer costs.

ADB said Fiji continues to face “large shocks due to limited fiscal buffers and climate risk,” but ongoing reforms and new spending on water security and coastal protection should strengthen long-term resilience.

In Solomon Islands, growth is expected to hold steady at 2.9 percent in 2025 and 3.2 percent in 2026, with the inflation outlook revised upward for next year before easing slightly in 2026. The government’s recent shift to an expansionary monetary policy is expected to support growth while keeping inflation contained.

Vanuatu’s 2025 forecast was trimmed to 1.5 percent, reflecting delays in post-earthquake reconstruction, though growth is expected to recover to 2.5 percent in 2026.

In the Central Pacific, growth projections were adjusted slightly downward for Kiribati and Nauru, now at 3.9 percent and 2.3 percent in 2025, and 3.3 percent and 2.5 percent in 2026, respectively. Tuvalu’s growth outlook remains unchanged at 2.7 percent in 2025 and 2.5 percent in 2026. Public infrastructure spending is expected to remain a key growth driver across these economies, though commodity price volatility and supply chain disruptions continue to pose risks.

In the North Pacific, forecasts were mixed. Growth was upgraded for the Marshall Islands to 3.0 percent in 2025 and 3.5 percent in 2026, supported by fisheries and construction. However, projections were lowered for the Federated States of Micronesia (FSM) and Palau—now at 0.8 percent and 8.2 percent in 2025, and 1.1 percent and 3.9 percent in 2026, respectively. The ADB cited slow utilization of Compact of Free Association funds in FSM and a gradual tourism recovery in Palau.

Growth prospects across the South Pacific are expected to remain uneven. The Cook Islands is projected to post the highest growth in the region at 10.4 percent in 2025, before slowing to 2.5 percent in 2026 as post-pandemic tourism demand stabilizes. Growth in Samoa is expected at 4.0 percent in 2025 and 2.7 percent in 2026, while Niue is forecast at 3.4 percent and 3.0 percent. Tonga is projected to grow 2.5 percent next year, moderating slightly to 2.3 percent in 2026.

“Tourism and construction remain key growth drivers” in the South Pacific, the report said, though weaker agriculture and fisheries output could weigh on Samoa’s outlook. Inflation is expected to continue moderating but could face renewed upward pressure from global price movements.

Founded in 1966, ADB is owned by 69 members, 50 of which are from the Asia-Pacific region. The Manila-based multilateral lender said it remains committed to “helping build resilience to potential shocks” and supporting inclusive, sustainable growth through innovation, infrastructure, and partnerships.

Five years ago, Violet Bukon was preparing meals in her home kitchen with a vision for something greater. At present, she leads The Eatery Catering and Cakes, a thriving business in Lae that provides boardroom lunches to some of Papua New Guinea’s top companies, and she has been honoured as the 2025 Westpac Outstanding Women Awards (WOWA) Entrepreneur winner.

This is not just a story of business success. It is the journey of a mother who transformed her passion for cooking into a venture making a meaningful impact across Lae.

What started in Violet’s home has grown into a business that now supplies Paradise Foods Limited, Credit Corporation, and the Bank of Papua New Guinea. More importantly, she has trained more than 20 young people, teaching them cooking and customer service skills that are helping them build their own futures.

Reflecting on her journey, Violet said: “I built this business not just to rise, but to raise others with me. When women are equipped with life skills, they find the power to live meaningful lives and contribute with purpose to their families, society, and nation.”

Walk into Violet’s kitchen today and you will see transformation in action. Young people who once had few opportunities are learning valuable skills, gaining confidence, and discovering their potential. Some have gone on to start their own food businesses, while others have found steady employment in hospitality.

Tamzin Wardley, chairwoman of Westpac PNG, praised the award recipient: “Violet’s approach reminds us that business can be a platform for growth, not only for the entrepreneur but also for the people around them."

"Her commitment to mentoring young people and creating opportunities through enterprise is a powerful example of leadership in action. It’s not just about building a successful business; it’s about building futures, and that is the kind of impact Westpac PNG is proud to support across the country," Wardley added.

Emma Low, managing director of Westpac Pacific, stressed that the WOW Awards are more than a moment of recognition, but also a celebration of the outstanding contributions of women, a catalyst for opportunity, and an inspiration for the next generation of female leaders in PNG.

"I was truly impressed by both the high volume and exceptional quality of this year’s nominations. I’m especially proud of finalists like Violet Bukon, whose dedication and impact exemplify the spirit of the awards. Our 21 finalists represent a broad geographic spread from across the country, highlighting the incredible talent found in every corner of PNG," Low said.

Andrew Cairns, chief executive of Westpac PNG, also congratulated Violet for her victory in the Entrepreneur category, reflecting Westpac’s values of supporting businesses that create positive community impact. "She embodies the spirit of enterprise that builds stronger communities," Cairns said.

The WOW Awards are a cornerstone of Westpac PNG’s commitment to gender equity and inclusive growth. Through this platform, Westpac continues to champion the role of women in building a stronger, more resilient Papua New Guinea.

Today, as corporate executives in Lae enjoy her catering and young people continue to learn in her kitchen, Violet is building something bigger than a business. She is building a legacy that will inspire generations to come.

At independence in 1975, Papua New Guinea (PNG) emerged as a young nation of 2.8 million people, transitioning peacefully from Australian administration with optimism grounded in the Charter of National Unity. Rich in natural resources like gold and copper, and supported by a vibrant agricultural sector, PNG’s early economic prospects were promising. The Panguna mine in Bougainville alone contributed significantly to exports and GDP, while the principle of “unity in diversity” helped shape a national identity across more than 800 language groups.

However, the country faced major hurdles, including limited infrastructure, low literacy rates, and political fragmentation, which complicated development and governance. Building a unified state amid such diversity was a formidable task, and economic vulnerability was evident in PNG’s heavy dependence on resource exports.

Fifty Years On: Progress and Persistent Challenges

Half a century later, PNG has made notable progress. Its population has grown to nearly 12 million, while its economy has expanded in both size and sophistication. With growth rates now comparable to major emerging markets, the nation has increased its regional influence and improved connectivity through digital transformation and transport investments.

Large-scale resource projects continue to drive revenues, while agriculture and small enterprise remain the backbone of rural livelihoods. Civil society is stronger, and democratic institutions have endured despite political turbulence.

Yet persistent challenges remain. Poverty, inequality, and weak institutions constrain development. Many rural communities remain disconnected from markets and services, while climate change threatens food security and coastal settlements. PNG stands at a strategic crossroad, with its future hinging on diversifying beyond extractives, strengthening governance, and investing in inclusive, long-term development.

Economic Outlook: Momentum into 2025

According to Westpac’s September 2025 Economic Update, the PNG economy is expected to grow by 4.7% in 2025, continuing the momentum of 3.8% in 2023 and an estimated 4.3% in 2024. Growth is being supported by both resource and non-resource sectors.

Mining activity has rebounded with Porgera mine restarting production, while LNG shipments remain steady. On the non-resource side, agriculture is showing signs of renewed dynamism, with coffee and cocoa exports benefitting from high global prices.

Westpac notes that this performance places PNG in line with China’s growth rate and ahead of many regional economies, underscoring its potential as a Pacific growth engine.

Bank of PNG and the Kina

At its September meeting, the Bank of Papua New Guinea’s Monetary Policy Committee raised the Kina Facility Rate (KFR) from 4.0% to 5.0%, while simultaneously lowering the Cash Reserve Requirement (CRR) for commercial banks from 10% to 9%.

This mix of tightening and loosening reflects a balancing act: controlling inflation while injecting liquidity into the economy. The central bank also maintained its “crawl-like” exchange rate arrangement, which allows for gradual depreciation of the kina.

The kina has weakened around 4% against the U.S. dollar this year, improving export competitiveness but raising the cost of imports. Gross foreign reserves remain healthy at US$3.6 billion, covering nearly seven months of imports.

Westpac cautions, however, that the transmission of monetary policy remains weak. Higher policy rates have had limited impact on commercial lending and deposit rates, reflecting underdeveloped financial markets.

Government Finances: A “Tough Year”

On the fiscal side, 2025 has been described as a “tough year” for government finances. Tax revenue collections fell significantly short of expectations in the first half of the year, compounding shortfalls in 2024.

This setback complicates the government’s 13-year Budget Repair Plan, which aims to gradually reduce deficits and place debt on a sustainable path. To stay within its official target deficit of K2.95 billion (2.2% of GDP), the government has signalled expenditure cuts of nearly 6%.

If spending restraint fails, Westpac estimates the deficit could balloon to K4.6 billion (3.5% of GDP). With debt levels already high, the report stresses the need for discipline and “policy adjustments” to maintain credibility with investors and development partners.

Inflation: Cooling but Uneven

Inflation pressures have eased in 2025. Headline inflation slowed to 3.6% in the June quarter, down from 5.3% in March. Core inflation also edged lower to 3.0%.

The decline has been driven by stabilising food and fuel prices, along with a stronger supply of domestic agricultural produce. However, imported inflation remains a concern due to kina depreciation and global supply chain pressures.

Westpac expects inflation to moderate further, possibly reaching 3% by the end of 2025, although risks remain from commodity price volatility and fiscal slippage.

LNG: Anchor of the Future

PNG’s liquefied natural gas (LNG) sector continues to anchor its economy. Year-to-date to July, LNG exports to Japan rose by 9% to K5.5 billion, driven by strong second-quarter shipments.

The Papua LNG project, led by TotalEnergies, is seen as the next major catalyst for growth. While it has attracted less attention in recent months, news suggests a final investment decision (FID) is on track for the first quarter of 2026.

For PNG, this project promises not only economic growth but also thousands of jobs and greater integration into Asian energy markets. Westpac argues that its successful execution will “drive the next phase of prosperity.”

Gold: Benefitting from Global Uncertainty

Gold has emerged as a bright spot in PNG’s export basket. Prices surged above US$3,600 per ounce in mid-September, fuelled by a weaker U.S. dollar and concerns over global trade tensions.

This has boosted revenues for PNG’s gold miners and exporters, reinforcing the resource sector’s role in stabilising the economy. Together with LNG, gold earnings have helped offset weaker government revenues from other sources.

Agriculture: Back to the Future

While resources dominate headlines, agriculture remains the backbone of livelihoods. Authorities and stakeholders have renewed their push to revitalise palm oil, rubber, cocoa, and coffee.

The sector has registered sustainable average growth of 2% in recent years, but Westpac stresses the need to scale up production and improve market access. A more dynamic agricultural base, it argues, would help reduce inequality and spread the benefits of growth beyond urban centres.

The Strategic Crossroad

Fifty years after independence, Papua New Guinea faces a familiar paradox: enormous natural wealth paired with structural vulnerabilities. Growth is robust, but fiscal slippage, weak institutions, and overreliance on extractives threaten stability.

Westpac’s update is cautiously optimistic, highlighting opportunities in LNG, gold, and agriculture while urging reforms in fiscal management, governance, and financial markets.

The report concludes with a call for long-term vision:

“The message is clear — focus on reforms and investments that deliver the greatest long-term benefit for all Papua New Guineans, not just for now, but for future generations.”

As PNG charts its next 50 years, its challenge will be to turn resource-driven growth into inclusive development that uplifts every community — from highland coffee farmers to coastal fishing villages — while safeguarding the nation’s future.