The economy of Papua New Guinea is dominated by its large, labour-intensive agriculture sector and extractive industries, which are mainly focused on oil, liquefied natural gas (LNG) and various mining activities, including gold copper and silver. The manufacturing sector remains small, generally contributing around less than 2% of GDP, and is largely made up of food, soft drinks, beer and…
As has been the case worldwide, in the first half of 2020 Papua New Guinea’s retail sector had to contend with the impact of the Covid-19 pandemic. In early February the government began imposing measures to limit the spread of the virus, while simultaneously introducing significant macroeconomic initiatives to support the economy and cushion business owners from challenges resulting from…
Interview:Allan Bird In what ways are provincial governors working to safeguard the economy in light of the Covid-19 pandemic, particularly regarding agriculture? ALLAN BIRD: Limited central planning and coordination from the federal government essentially passed on much of the responsibility for managing the Covid-19 pandemic to provincial governors. These officials had to look at the quickly…
Agriculture is a central pillar of Papua New Guinea’s economy. In 2019 it made up 25% of GDP and contributed to the livelihoods of 85% of the population. The country’s key crops include cocoa, coffee, copra, palm oil, rubber and tea, most of which are exported and form an important source of foreign exchange (forex) revenues. Since Prime Minister James Marape was elected in May 2019, he…
The laying of two subsea fibre-optic cables – one international and one domestic – are among the recent and promising ICT developments in Papua New Guinea. There is optimism that these will help expand access and reduce costs in rural areas, which are home to over 80% of the country’s 8.6m-strong population. Meanwhile, it remains to be seen whether the restructuring of state-owned ICT…
Government Structure There are three levels of government in Papua New Guinea: national, provincial and local. The legislative powers of these governments are regulated by the constitution and the Organic Law on Provincial Government and Local Level Government (Organic Laws). Each level has its own distinct law-making powers. The National Parliament’s legislative powers are outlined in section…
Interview:Tony Honey What are the short- and medium-term implications of Covid-19 for the tourism industry, and what measures could help mitigate the fallout? TONY HONEY: Covid-19 and the related travel restrictions have been disastrous for the tourism industry in Papua New Guinea. While tourism forms a small part of PNG’s economy as a whole, it plays an important role in rural areas and…
Interview:Scott Roger How can the IMF help developing economies in Asia Pacific mitigate the challenges of the pandemic? SCOTT ROGER: Since the outbreak of Covid-19 the IMF has offered policy advice, financial assistance and other support – including virtual initiatives for government officials to improve skills and develop capacity – to all its member countries. The IMF has provided emergency…
Interview:Clarence Hoot What synergies are expected to arise from the recent agreement between the IPA and the National Superannuation Fund (nasfund)? CLARENCE HOOT: In March 2020 the IPA and nasfund signed a memorandum of understanding (MoU) to enable closer cooperation and allow both organisations to share relevant employer database information to ensure that companies which register with…
Interview:Sasindran Muthuvel Where are there opportunities to optimise the management, performance and corporate governance of state-owned enterprises (SOEs)? SASINDRAN MUTHUVEL: At the executive management level, we must have individuals with relevant skills and experience, along with integrity and sound character, leading SOEs. I have recently pushed for Kumul Consolidated Holdings (KCH)…
