Papua New Guinea has secured approximately US$163 million in new funding from the International Monetary Fund (IMF) following the completion of reviews under its ongoing economic reform programme.
The funding, announced on 8 June, comes through the IMF’s Extended Credit Facility and Extended Fund Facility arrangements and is expected to support the country’s efforts to strengthen economic stability, improve public finances and continue reforms aimed at boosting long-term growth.
The IMF said Papua New Guinea’s economy had remained resilient despite external pressures and domestic challenges, with growth supported by activity in both the resource and non-resource sectors.
The latest disbursement provides additional financial support as the government continues work to address foreign exchange shortages, improve revenue collection and strengthen fiscal management.
PNG has been implementing a programme of economic reforms agreed with the IMF since 2023. The programme is designed to improve macroeconomic stability, support sustainable growth and strengthen the country’s financial position.
According to the IMF, progress has been made in a number of areas, including fiscal consolidation and reforms aimed at improving the operation of the foreign exchange market. The institution noted that while challenges remain, the authorities have continued to demonstrate commitment to the reform agenda.
The new funding arrives at a time when Papua New Guinea is seeking to attract greater investment across key sectors including energy, mining, agriculture, infrastructure and digital connectivity.
Business groups have long argued that improvements in access to foreign currency and greater economic certainty are essential for encouraging investment and supporting private sector growth.
The IMF said continued reform efforts would be important to maintaining economic momentum and strengthening resilience against future shocks. It also highlighted the need for ongoing work to improve governance, strengthen public institutions and support inclusive economic development.
The additional financing is expected to bolster foreign reserves and provide further confidence to investors and development partners supporting projects in Papua New Guinea.
The IMF’s decision has been welcomed as a positive signal for the country’s economic outlook, particularly as major resource projects and infrastructure investments continue to advance. With further reforms underway, the latest funding package is expected to provide additional support for the government’s goal of achieving stronger and more sustainable economic growth in the years ahead.
