The Papua New Guinea Investment Promotion Agency

Economic Profile

The major economic sectors in Papua New Guinea are: Agriculture and Livestock, Forestry, Mining and Petroleum, Tourism and Hospitality, Fisheries and Marine resources, Manufacturing, Retailing and Wholesaling, Building and Construction, Transport and Telecommunications, and Finance and Business Trade.

PNG's major exports are gold, silver, copper, crude oil, logs and timber, coffee, palm oil, cocoa and copra. PNG has experienced a relatively even balance of trade over the last five years, with exports marginally more than imports.

The waters around PNG are rich in marine life and are virtually untouched. Within the 200 mile economic zone are large varieties of fish, including migrating schools of tuna. Forest products are one of PNG's major exports but the timber resource of the country again remains largely untapped.

Papua New Guinea's main imports are sourced from Australia, Japan, the United States of America, Singapore, New Zealand, the United Kingdom, China and Hong Kong. The main destinations of PNG exports are Australia, Japan, South Korea, China, Germany, the United States of America, the United Kingdom and Singapore.

Economic Policies

The Papua New Guinea Government believes that the key to economic growth is the development of private sector investment both domestically and abroad. The Government is also aware that in order to attract that investment, it must put in place a policy framework which will bring about that development, including its plans to enhance the manufacturing sector and boost export figures under an export-led Economic Recovery Program.

Investment Trends

Papua New Guinea is on the verge of substantial development with large-scale mining and petroleum projects generating wealth and creating employment for Papua New Guineans in the country. The following table shows the trend of foreign investment in the country between the period 1998 to 2004. The figures for 2005-2006 can be obtained from the Business and Information Facilitation Division.

Investment Security

The Government of PNG recognises the importance of the private sector to the country's development and guarantees the security of foreign investment. It has made an undertaking to minimise the perceived risks including expropriation, repudiation of contracts and discrimination through granting of most favoured nations treatment to investors particularly from countries of the Asia Pacific Economic Cooperation (APEC) and the World Trade Organisation (WTO).

Investment Incentives

There are numerous incentives available to investors willing to invest in Papua New Guinea. There are direct and indirect taxation-based incentives for large and small business proposals. PNG is a member to several international treaties and pacts which give its manufactured goods preferential access by way of duty free and reduced tariff to various export markets such as the European Union under the Cotonou Partnership Agreement.

About PNG

News

Divisions

Search

Website Hits