Trade & Investment
From The Report: Papua New Guinea 2016
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The trade and investment landscape in Papua New Guinea has undergone substantial changes in recent years, driven to a large extent by the country’s large liquefied natural gas (LNG) project, PNG LNG. The development comprises gas production and processing facilities, with its initial phase carrying an estimated cost of $19bn, an investment greater than the country’s GDP at constant prices in 2014, which stood at $15.8bn. Since the facility commenced production in April 2014, exports have reached record levels and the country has experienced its largest trade surplus ever. Even with fading hydrocarbons prices, key figures are holding up, putting PNG in an excellent trade position overall.

This chapter contains interviews with Manasseh Sogavare, Prime Minister, Solomon Islands; and Ivan Pomaleu, Investment Promotion Authority.

Articles from this Chapter

Overview

At a crossroads: The primary sector continues to be the main draw for investors
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The landscape for trade and investment in Papua New Guinea has undergone substantial changes in recent years. This shift has been driven to a large extent by the country’s large liquefied natural gas (LNG) project, PNG LNG. The development comprises gas production and processing facilities, with its initial phase carrying an estimated cost of $19bn, an investment greater than the country’s GDP at constant prices in 2014, which stood at $15.8bn. Since the facility commenced production…

Interview

Sharing information: OBG talks to Manasseh Sogavare, Prime Minister, Solomon Islands
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Interview:Manasseh Sogavare What would you say is the importance of South-South cooperation for sustainable economic growth in the Pacific region? MANASSEH SOGAVARE: I think that we have a unique opportunity within the Pacific region to learn from each other’s experiences and to make the most of our strengths in the effort of diversifying our economic bases. Take for instance Kiribati, a tiny island nation that boasts one of the largest exclusive economic zone in the world when compared…

Analysis

Focus on partnership: Free trade agreements fail to deliver the anticipated benefits
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A signatory to a large number of free trade agreements, PNG is in the process of negotiating accession to others. However, it is perhaps not as well integrated with other Asia-Pacific economies as it might have hoped, and its existing trade deals do not seem to be doing much to strengthen the economy. Furthermore, there is growing concern regarding the nature of future trade agreements and how they might be manufactured to deliver better outcomes. Connecting The Dots PNG has several trade…

Interview

Responding to pressure: OBG talks to Ivan Pomaleu, Managing Director, Investment Promotion Authority (IPA)
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Interview:Ivan Pomaleu What measures is the business community proposing in response to the persistence of low commodity prices on the international market? IVAN POMALEU: A drop of 30% in economic activities is to be expected in the 2016 financial year, specifically in sectors such as merchandising, wholesale and retail, and the fact that we have a very tight budget is an additional deterrent. Considering this state of affairs, there is a school of thought suggesting that the government should…

Analysis

A change of tack: Improvement of the business environment a key goal of the state
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The state has been modifying its legal framework to improve the investment environment in Papua New Guinea. The hope is that these changes will make economic activity more transparent and efficient, thereby helping PNG improve its position in the World Bank’s Doing Business rankings and attract more international participation in the economy. However, in what appears to be a set of contradictory moves, PNG is also working on initiatives that could engender more protectionist economic policies…