PNG’s Borrowing Era to End After 2027, Says Marape at World Economic Forum

Prime Minister James Marape says Papua New Guinea is moving towards economic self-reliance, with plans to end dependence on external borrowing after 2027 as part of a broader reform agenda.

The announcement followed discussions in Davos, Switzerland, where Mr Marape held talks with senior officials from the International Monetary Fund and the World Bank during the World Economic Forum’s annual meeting.

 PNG’s Borrowing Era to End After 2027, Says Marape at World Economic Forum

The Prime Minister said meetings with IMF Managing Director Kristalina Georgieva and World Bank President Ajay Banga reviewed PNG’s progress under its reform program and examined pathways to long-term fiscal sustainability.

He said global financial partners recognised the challenges faced by the country and the policy measures introduced to stabilise the economy, manage public debt and rebuild confidence in government systems.

“The engagement with the IMF and the World Bank is about stabilisation, reform and putting Papua New Guinea back on a strong economic footing,” Mr Marape said.

He emphasised that while concessional financing and technical support had helped PNG navigate a difficult recovery period, the government was determined to change course.

“Our goal is clear. From 2027 onwards, Papua New Guinea should not be borrowing to fund its national budget,” he said.

Mr Marape said the government’s vision is built around strengthening institutions, boosting domestic revenue and ensuring PNG gains more value from its natural resources.

He said care would continue to be taken to protect spending on essential services as reforms progress, while laying the foundation for economic sovereignty and resilience.

“The borrowing we have undertaken was to correct past economic imbalances and stabilise our finances. That phase must come to an end,” he said.