PNG Set for 5G Rollout in Major Cities, Says ICT Minister

PNG  Prime Minister James Marape met with International Monetary Fund (IMF) Deputy Managing Director Bo Li last week in Washington D.C., where both sides praised Papua New Guinea’s progress on economic reform and outlined plans for deeper collaboration.

The talks, held at the IMF headquarters, focused on PNG’s ongoing fiscal consolidation efforts, debt management strategy, and structural reforms aimed at stabilizing the economy and promoting sustainable growth.

Bo Li, who oversees PNG’s program within the IMF, commended the government’s commitment to macroeconomic discipline and transparency. He also highlighted the country’s improved policy framework as a key factor behind its stronger economic outlook.

Prime Minister Marape said PNG had deliberately re-engaged with the IMF in 2019 after years of financial mismanagement and reliance on costly commercial loans. The move, he explained, was part of a broader effort to place the country on a more stable and accountable fiscal path.

“We made a conscious decision to bring back the IMF because we needed a partner that could help us build a system based on transparency, accountability, and long-term planning,” Marape said.

He emphasized that while multilateral institutions play an advisory role, PNG’s reform agenda is home-grown, developed in consultation with local institutions such as Treasury and the Bank of Papua New Guinea.

Progress on Reform Agenda

At the heart of PNG’s economic strategy is a 33-point reform program launched in 2020. According to Marape, most of these reforms have been implemented successfully, with only a few remaining to be completed.

“These are not reforms imposed by the IMF,” Marape stressed. “They are reforms we initiated ourselves because we recognized the need for structural change. They are urgent, necessary, and central to our national development.”

The Prime Minister also reiterated PNG’s goal of achieving a balanced budget by 2027, setting the stage for aggressive debt reduction from 2028 onward. This will be supported by the newly established Sovereign Wealth Fund, which is expected to become operational in the next few years.

By 2033, the government aims to eliminate all public debt accumulated since PNG’s independence in 1975—a target that, if achieved, would mark a historic turning point for the country’s finances.

Positive Growth Forecast

According to IMF projections shared during the meeting, Papua New Guinea’s economy is expected to grow by 4.7 percent in 2025 , outpacing the global average of 3.7 percent and surpassing many regional economies.

This optimism is driven by improved fiscal management, steady implementation of reforms, and strong performance in non-resource sectors such as agriculture, fisheries, forestry, and small-scale enterprises.

For the first time in its post-independence history, PNG is seeing sustained economic momentum outside of extractive industries—benefiting rural communities and creating new opportunities across the country.

“This isn’t just about numbers,” Marape said. “It’s about real change that improves livelihoods and expands opportunity for millions of Papua New Guineans.”

Push for Digital Governance and Clean Energy

During the discussions, Marape also proposed new areas for IMF technical support, including:

Developing AI-powered platforms for transparent public procurement and merit-based recruitment;

Expanding renewable energy capacity through hydro, geothermal, and solar infrastructure;

Using domestic natural gas to power remote island provinces and potentially supply neighboring Pacific nations;

Strengthening oversight mechanisms for the Sovereign Wealth Fund to ensure transparency and effective management.

“These initiatives will modernize our governance systems, attract private investment, and improve service delivery,” Marape said.

The IMF delegation welcomed PNG’s clear strategic direction and acknowledged the country’s achievements in clearing foreign exchange arrears, stabilizing the kina, and improving overall fiscal oversight.

They also recommended that the government consider introducing incentives for exporters to repatriate foreign currency earnings—an action that could further strengthen the balance of payments.

A Path Forward

As Papua New Guinea marks 50 years since independence, the government continues to lay the foundation for a more resilient, inclusive, and self-reliant economy.

With measurable progress on reforms, strong institutional backing, and a renewed focus on sustainable development, PNG is positioning itself as a regional leader in economic transformation.

“Economic reform is not a one-time event—it’s a long journey,” said Marape. “But if we stay committed, we can leave behind a stronger, fairer, and more prosperous Papua New Guinea for generations to come.”

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PNG Set for 5G Rollout in Major Cities, Says ICT Minister