IMF and Papua New Guinea Reach Agreement on Economic Reforms and Financial Support
The IMF has finalized a staff-level agreement with Papua New Guinea, enabling disbursements totaling approximately US$216 million. This agreement supports ongoing economic reforms under the Extended Credit Facility, Extended Fund Facility, and Resilience and Sustainability Facility.
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An IMF team concluded its mission in Papua New Guinea from March 19 to April 1, 2026, focusing on the sixth reviews under the ECF and EFF arrangements and the third review under the RSF arrangement. Upon IMF Executive Board approval, the total disbursement will reach about US$216 million, enhancing overall financial support to approximately US$1.06 billion.
Economic growth is projected to ease to 3.8% in 2026, influenced by LNG production stabilization and increased import costs. The fiscal deficit is expected to decline to 1.1% of GDP in 2026, driven by revenue enhancements and controlled spending growth.
Additionally, the Bank of Papua New Guinea has made strides in reforming its monetary policy framework. Continued commitment to fiscal consolidation and climate resilience measures are crucial for maintaining economic stability.
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