Term deposits include investments offered by the commercial banks and financial institutions of Papua New Guinea. The terms range from 30-day deposits to 364-day deposits. According to the Bank of PNG (BPNG), the country has four commercial banks and 11 authorised deposit-receiving financial institutions. Indicators Broad money supply grew by 2.3% in the final quarter of 2016, compared…
Since the end of 2015 the Port Moresby Stock Exchange (POMSoX) has seen four companies exit for various reasons, decreasing the number of listed companies from 19 to 15. However, the same year saw an increase in the overall market value of the bourse from PGK51.3bn ($16.3bn) to PGK78bn ($24.7bn). During the same period, Kina Securities applied for a dual listing on both the POMSoX and the…
The amount of debt held by the national government of Papua New Guinea continued to increase in 2016, following consecutive budget deficits posted since 2012. As a result, the government has accessed the domestic and international markets to fund the deficit. However, according to the 2017 national budget, the debt-to-GDP ratio, which was 34.5% in 2016, is expected to ease to 28.8% in 2017…
Papua New Guinea’s market is remarkably open in terms of trade. Over the past two decades the country has gone from being a high-tariff jurisdiction pursuing 1970s-style goals of protection and import substitution, to one that embraces free market principles. The tenets of the Washington Consensus were accepted and implemented in a phased approach over several years. The country remains open…
Papua New Guinea’s insurance sector has considerable potential, not only in terms of growth in the more traditional urban, commercial and industrial markets, but also because the country has so many people who have never had exposure to insurance of any kind. As marketing, distribution and design are improved, take-up by lower-income individuals and those living in remote rural areas could…
The Mining Act of 1992 has served as a sturdy legal guide for the industry in Papua New Guinea, albeit with a small number of gaps that policymakers are eager to close. With the ultimate goal of maintaining a legal structure that is attractive for investors while also providing adequate financial incentives for the state and protecting the benefits of landowners, a number of conflicts of interest…
Although Papua New Guinea has risen to become a significant regional exporter of liquefied natural gas (LNG) since the launch of commercial operations at the PNG LNG project in 2014, the country continues to deal with domestic energy challenges. The country’s electrification rate is the lowest among APEC members. Industrial expansion and value-added manufacturing, which will play an important…
Papua New Guinea continues to grapple with some of the highest transport costs in the Asia-Pacific region, which has negatively affected the country’s business environment and investment climate. Although aviation and maritime shipping costs are also elevated, one of the most significant obstacles to affordable transport is the country’s dilapidated roads network, with limited connectivity…
Capacity constraints at the increasingly busy Jacksons International Airport (JIA) have made expansion of passenger facilities and runways an important priority for aviation stakeholders. Although the airport has already undergone recent renovations to expand its existing international passenger terminal, authorities are directing their efforts at building a new international terminal building.…
Papua New Guinea’s rugged mountainous highlands are ideal for hydroelectric power generation, and the government has been keen to capitalise on its abundant hydro resources as it develops new renewable energy projects. A large number of hydropower projects are under the management of Kumul Consolidated Holdings (KCH), the statutory body responsible for overseeing public infrastructure projects.…
