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.
National Investment Policy
The National Investment Policy provides guidelines for the pursuit of economic development through the implementation of investment projects in the country. The Policy’s Volume I and Volume II were prepared in 1998 and 1999 respectively. It is currently undergoing a review towards formulating the National Investment Policy Volume III in consultation with all the stakeholders, including the private sector. Volume III of the Policy will define the core policy objectives and strategies of the commerce sector and further boost economic growth through structural reforms that remove barriers to investment and support infrastructure development.
Medium Term Development Strategy 2005 – 2010
The Medium Term Development Strategy (MTDS) charts the course of reforms in the public sector in the 21st Century. The MTDS translates the means to overcome ineffective governance and bring about development as defined under export-driven economic growth, rural outgrowth and poverty reduction. The resource owners in Papua New Guinea are encouraged to mobilise their resources, including land, to drive the development process to achieve higher standards of living.
Industrial Development Policies
The main thrust of the Government’s economic development and industrial policies is aimed at increasing the value and volume of value-added products. Government policies encourage the development of PNG’s non-mining sectors including manufacturing, renewable resources such as agriculture and fisheries, and business services, to promote economic self-sufficiency. The promotion of non-mining sectors of the economy ensures that economic growth can be sustained after the depletion of mineral resources. The policies focus on the industries and business, particularly the private sector investments to create employment and achieve economic growth.
The implementation of industrial policies remains the responsibility of the various statutory authorities which are established for that purpose within the Ministry of Trade, Commerce and Industry. These are the:
• Investment Promotion Authority (IPA)
• Small Business Development Corporation (SBDC)
• Industrial Centres Development Corporation (ICDC), and the
• National Institute of Standards and Industrial Technology (NISIT) through which quality control procedures can be addressed. New ventures can rely upon NISIT for research assistance and information on development and transfer of technology.
Small to Medium Enterprise Policy
The Small to Medium Enterprise (SME) Policy aims to promote the development of small to medium enterprises in PNG in relation to the transfer and adoption of appropriate technology and the encouragement and strengthening of the linkages between SMEs and their support institutions. The main objective is to instill business culture within the SMEs and ensure their long-term sustainability.