Marape sets sights on K200 billion economy, urges business diversification

Prime Minister James Marape has reaffirmed his confidence that Papua New Guinea’s economy will reach the K200 billion mark by 2030, driven by aggressive infrastructure development and a shift towards export-led growth.

Speaking at the 16th Prime Minister’s Back to Business Breakfast at the Stanley Hotel yesterday, Marape outlined a strategic roadmap for the nation’s investors, emphasizing that a robust economy is the only way to ensure the government can afford essential public services.

The Prime Minister said achieving this ambitious vision requires optimism with the physical foundation of modern ports and airports. However, his core message was a call for a shift in the private sector's mindset.

"Our focus since 2019 has remained undisputed: to grow our economy to K200 billion," Marape said. "When the economy is bigger and healthier, the government has the affordability to serve our people."

He said the country must transit from an import-heavy economy to an export powerhouse to fuel this growth.

Marape was candid about his administration’s stance on foreign exchange, addressing concerns over the Kina’s fluctuating value,

"I don't like the Kina going down, but if my coffee growers are earning more from their exports, I would rather keep it that way to encourage production," Marape said.

He argued against artificially propping up the currency, suggesting that the Kina must find its own strength through increased production of copper, cocoa, and oil palm.

The Prime Minister challenged businesses to look beyond the upcoming wave of non-renewable resource projects. He said PNG’s unique strategic position as the only nation with membership in the Pacific Islands Forum (PIF), APEC, and ASEAN is vital.

"APEC and ASEAN combined represent 60% of the world’s economy," Marape said. "We don't need markets elsewhere. The market is within reach, within an eight-hour flight or one week of shipping."

Marape offered immediate government support for businesses willing to reduce PNG’s reliance on imports, particularly in the food sector, as a direct appeal to the private sector,

"How can we be importing rice and beef when we have the land to grow them?" he asked. "For any of you who want to ramp up exports especially food, I am ready to talk about tax relief right away."

The Prime Minister concluded by saying that while the oil and gas sectors remain vital, the long-term resilience of Papua New Guinea depends on food and energy self-reliance. He urged the private sector to work in lockstep with the government to build a robust economy for 2026 and beyond.