Papua New Guinea

PSDI is working with the Government of Papua New Guinea to help make PNG a safer, more productive, easier, and more inclusive place to do business.

PSDI is working with the Government of Papua New Guinea to:

  • Increase the availability of private sector credit by supporting the utilization of the secured transactions framework established in 2015, and advising on the introduction of alternative capital-raising platforms;

  • Promote entrepreneurship and foreign direct investment, particularly through providing ongoing assistance and advice to PNG’s Investment Promotion Authority;

  • Improve the efficiency and transparency of state-owned enterprises, by enabling public-private partnership transactions, developing a Community Service Obligation Policy for SOEs, and including PNG in PSDI’s Finding Balance SOE benchmarking studies;

  • Develop the technical and cross-cutting capacity of PNG’s Independent Consumer and Competition Commission;

  • Increase access to finance and financial services, by supporting the development of MiCash (a mobile phone linked bank account) and funding the design of the Microfinance Expansion Project (MEP); and

  • Remove barriers to women’s participation in the formal economy through pilot initiatives helping businesswomen enter the formal economy and helping women professionals reach leadership positions.

Resources and Spending

PSDI’s activities in Papua New Guinea (PNG) have rapidly expanded since 2015 due to an additional $8.08 million in funding provided for Phase III by the Government of Australia. Similar additional funding for PNG has been again committed by the Government of Australia for PSDI Phase IV. These funds are being used to support expanded requests from the Government of Papua New Guinea to improve the enabling business environment across all of PSDI’s work areas: financing growth, business law reform, competition and consumer protection, further support for reforming state-owned enterprises (SOEs), implementing the public-private partnership (PPP) framework, and mainstreaming economic empowerment of women into PSDI projects.

A PSDI coordinator has been based at the Asian Development Bank’s (ADB) Papua New Guinea Resident Mission since January 2010. The expansion of PSDI’s program in PNG has necessitated the engagement of an additional coordinator since November 2016. The coordinators promote effective private sector development policies and practices through dialogue with the government and other stakeholders and support the implementation of PSDI initiatives.

PNG2007 2019 web

On this website, $ refers to US dollars unless otherwise stated.

For detailed information on PSDI activities in Papua new Guinea, download the 2022 PSDI Country Overview here.

Papua New Guinea at a glance

Secured transactions framework

PNG's PSDI-supported Personal Property Securities Registry was activated in May 2016, making it easier for lenders to extend credit secured against movable assets, such as vehicles, inventories, or sales contracts.

27,000 securities registered

As of end-2019, more than 27,000 security interests over movable assets to be used as collateral for loans have been registered in the Papua New Guinea using the PSDI-supported secured transactions framework.

Agricultural Value Chain Loan

launched by MiBank, with PSDI support, in May 2019. Its initial application is for cocoa financing in East New Britain, and other applications are being assessed.

Consumer and Competition Framework

review completed, and ongoing support provided to the Independent Consumer and Competition Commission.

Private sector assessment

Building a Dynamic Pacific Economy: Strengthening the Private Sector in Papua New Guinea, published in April 2015

Public-Private Partnerships Act

gazetted in January 2018, enabled the creation of a PPP program and requires PPP transactions to be developed transparently and predictably.
Latest News
23 April 2024
PSDI and ADB-supported arbitration laws passed in Papua New Guinea

The Government of Papua New Guinea has passed two new arbitration laws—the International Arbitration Act 2024 and the Domestic Arbitration Act 2024—which will help attract foreign investment and trade, enhance investor confidence, and align PNG’s legal system with globally recognized arbitration sta

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16 April 2024
PSDI presents Innovative Financing Mechanisms in the Pacific policy paper in Papua New Guinea

PSDI’s Financing Growth team recently presented the new policy paper, Innovative Financing Mechanisms in the Pacific, to key stakeholders in Papua New Guinea.

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23 January 2024
ADB-Supported PPP Framework to Improve Infrastructure Service Delivery in PNG

PORT MORESBY, PAPUA NEW GUINEA (23 January 2024) — The Asian Development Bank (ADB) welcomes a new framework for public–private partnerships (PPPs) in Papua New Guinea (PNG) aimed at unlocking private investment and know-how, and allowing PNG to expand and improve infrastructure service delivery.

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17 January 2024
Enhanced foreign direct investment can drive economic growth and development—PSDI

FDI can be a powerful driver of economic growth and human capital development. A strategic approach and targeted reforms can support Pacific countries to attract, retain, and assess FDI effectively, according to a comprehensive study of the FDI frameworks in five Pacific countries.

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8 December 2023
Tourism Promotion Authority (TPA) of PNG holds validation workshop for PSDI-supported National Tourism Policy

More than 50 participants from the public and private sector, academia, and civil society took part in a 2-day workshop, held at the University of Papua New Guinea on 5-6 December, to validate the draft of the PSDI-supported National Tourism Policy.

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28 September 2023
Supporting a greener, resilient tourism sector for Papua New Guinea: World Tourism Day

PSDI marked World Tourism Day on 27 September 2023 by attending the World Tourism Day Conference and Expo in Lae, Papua New Guinea, organized by the Papua New Guinea Tourism Promotion Authority and the Lae City Tourism Bureau.

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Key Publications
Domestic Tourism Data Collection Methodologies: Recommendations for Papua New Guinea
Domestic Tourism Data Collection Methodologies: Recommendati...
This study provides recommendations for suitable methodologies to measure domestic tourism in Papua New Guinea.
Unlocking Potential: A Gender Inclusive Private Sector Framework for the Pacific Report and Country Assessments
Unlocking Potential: A Gender Inclusive Private Sector Frame...
The Gender Inclusive Private Sector Framework serves as a practical checklist for Pacific governments and institutions to measure progress and identify areas where further improvements are needed.
Papua New Guinea: Women in Business Consultations (Primary Research) Report
Papua New Guinea: Women in Business Consultations (Primary R...
This consultant's report presents findings from focus groups conducted in 2022 with 127 women operating formal and informal businesses across PNG and in 2023 with 76 women operating formal and informal businesses in AROB, PNG.
Innovative Financing Mechanisms in the Pacific
Innovative Financing Mechanisms in the Pacific
This paper examines the potential benefits and issues to consider around implementing Innovative Financing Mechanisms in the Pacific, which can lower barriers and provide more options for businesses seeking finance.
Investment For Growth: A review of foreign direct investment frameworks in the Pacific
Investment For Growth: A review of foreign direct investment...
This study reviews the FDI frameworks in Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu, to support countries to attract, retain, and assess FDI efficiently and effectively.
PSDI Annual Report FY2022
PSDI Annual Report FY2022
This report gives an overview of PSDI activities from July 2021 to June 2022.