“PNG’s economic turnaround is real, measurable, and built on reform — not rhetoric”: PM response to Nomane

Papua New Guinea's capital is one of the fastest growing cities in Pacific region (Image: Supplied)

Prime Minister James Marape has dismissed accusations made by Chuave MP James Nomane over the Government’s fiscal record, describing the claims as politically driven, selective, and misleading.

PM Marape said despite the unprecedented global shocks that have affected economies worldwide since 2019, the Government remains firmly committed to responsible fiscal management, economic diversification, debt stabilization, and strengthening of provincial and district funding system.

Marape said it is irresponsible and misleading to ignore the global realities that shaped every country’s fiscal position.

“Between 2019 and 2025 the world endured COVID-19, international inflation, supply-chain disruptions, higher fuel prices, geopolitical conflicts, and collapsing commodity markets. Every major economy — Australia, New Zealand, the UK, the US — increased borrowing to protect services and livelihoods. PNG was no different.”

He said the Government ensured the protection of essential services during this period, keeping schools open, hospitals functioning, law-and-order operations running, SME support programs active, and ensuring no public servant went unpaid.

"Debt Must Be Seen in Context — PNG’s Economy Has Grown the Fastest in Any Six-Year Period in National History," he said.

Chuave MP and shadow Treasurer James Nomane says the national government has failed to address the country's on-going economic issues since 2019 (Image: Supplied)

Prime Minister Marape said commentary on debt must be matched with acknowledgment of PNG’s unprecedented GDP expansion. “Over the last six years, we have grown the
economy faster than at any other time in our history — adding K50 billion to GDP.

No government before us has achieved this level of expansion.

“In 2019, we set a target to grow our economy beyond K200 billion, and we have now added K50 billion on top of the K79 billion economy we inherited from O’Neill in 2018.”

Debt Is Now Stabilizing Under the Medium-Term Fiscal Strategy.

“Our deficit peaked at 8.9% in 2020 due to COVID-19. Since then, deficits have declined every year — now under 3%, next year under 2%, and we remain firmly on track for a balanced budget by 2027.”

He said the Government has restructured debt, secured long-term concessional financing, improved revenue compliance, and strengthened the overall fiscal position.

PM Marape said independent institutions have verified PNG’s improving economic management.

“Don’t listen to political commentators. Look at Westpac, ANZ, BSP, Nasfund, Nambawan Super, the World Bank, ADB, IMF, and the Bank of Papua New Guinea. These credible
institutions all confirm the same thing: PNG’s economy is stabilizing, diversifying, and growing.”

Prime Minister James Marape is certain the economy has grown under his leadership (Image: Supplied)

Key achievements include:

Record State dividends exceeding K2 billion.
Major resource project agreements — Porgera, Papua LNG, P’nyang, WafiGolpu — securing long-term future revenue.
The strongest non-resource tax collection in PNG’s history.
Foreign exchange stability and higher export inflows.
Four consecutive years of non-resource sector growth above 4%, expected toextend to a fifth year.

Prime Minister Marape said the Government has delivered the most extensive social support program in PNG’s history.
“We have given the highest level of direct help to citizens ever delivered by any government.”
This includes:

Expanding education support from early childhood to universities.
Removal of personal income tax for over 200,000 low-income workers earning under K20,000.
Removal of GST from essential household items to ease cost-of-living pressures.
“These are real benefits felt in homes, workplaces, classrooms, and markets nationwide,” he said.

“More than 80% of DSIP and PSIP funding now flows directly to districts and provinces. Roads, bridges, classrooms, teachers’ houses, clinics, airstrips, and police facilities have been built or upgraded across the country.”

He said Connect PNG has delivered more kilometers of new road than any period since Independence, while procurement reforms and improved project execution have increased accountability and delivery across departments.

“Audits, including COVID-19 expenditure reports, are being finalized and tabled. Where mismanagement is detected, appropriate action will be taken," Marape said.

“James Nomane speaks from a political standpoint. But independent economic commentators — with far more expertise than him — have confirmed that our economic management is stronger than the former administration he is closely associated with.

“PNG needs solutions, not sensationalism. The 2026 Budget will continue the path of fiscal consolidation, agricultural production, policing, infrastructure investment,
and long-term economic growth.

"We must rise above politics and work together for our nation.”