Prime Minister Hon. James Marape has called on Papua New Guinea to urgently strengthen its domestic production and productivity base to safeguard the nation against growing global economic uncertainty.
Speaking following his participation at the World Economic Forum (WEF) Annual Meeting in Davos, Prime Minister Marape said the global order that has shaped international relations and economic stability for the past five decades is undergoing profound change.
“The world today is fragmented,” the Prime Minister said. “The world order that we have lived under for the last 50 years — the same order that saw Papua New Guinea born into the family of nations — is now being affected. There is uncertainty about what the future global order will look like.”
Prime Minister Marape said that amid geopolitical tensions, economic shocks and climate-related disruptions,
Papua New Guinea must ensure it is not left exposed or overly dependent on external forces.
“As a nation, we must not be left vulnerable to whatever shape the new world order takes,” he said. “We must ramp up our own production and productivity so that we can withstand the shocks facing the global economy — whether those shocks are man-made or natural.”
IMF Commends PNG’s Economic Reforms
During the World Economic Forum, Prime Minister Marape held a brief meeting with the Managing Director of the International Monetary Fund (IMF), who commended Papua New Guinea for its ongoing economic reforms.
“She acknowledged the fiscal discipline we are exercising and recognised our journey towards fiscal consolidation and a balanced budget next year,” the Prime Minister said.
He added that the IMF Managing Director also delivered strong advice on national resilience.
“She reminded us that Papua New Guinea must take control of its own destiny — by expanding production for exports and reducing vulnerability to global shocks.”
Production Must Increase Across Key Sectors
Prime Minister Marape stressed that economic ministries and agencies must intensify efforts to lift productivity across all major sectors.
“Those ministries responsible for economic productivity must not rest,” he said.
“We must ensure that Papua New Guinea controls its own economic destiny.”
He outlined priority sectors where production must increase, including:
• Coffee production
• Oil palm production
• Cocoa production
• Copra and coconut-based products, including virgin coconut oil and downstream processing
• Other agricultural produce, including food crops, spices, livestock and emerging export crops
• Fisheries and marine resources
• Forestry earnings, including conservation-based income, sustainable harvesting and downstream processing
• Mining, petroleum and gas exports
• Renewable energy development, as the world transitions away from fossil fuels
“These are sectors that are within our control,” Prime Minister Marape said. “Increasing production is the single most important response to an uncertain global outlook.”
PNG’s Global Market Access “Second to None”
Despite global uncertainty, the Prime Minister said Papua New Guinea remains exceptionally well positioned to access international markets.
“Our global outreach is second to none,” he said.
He highlighted Papua New Guinea’s strong bilateral and multilateral relationships, including:
• Connectivity with 13 G20 economies
• Expanding engagement with the Middle East, including Arab nations and Israel
• Traditional partnerships with the United Kingdom and Europe
• Strong relations with the United States and Canada, including through APEC
• Deep bilateral ties with China, Japan and South Korea
• Close partnerships with Australia, New Zealand and Southeast Asian neighbours
“Our access to global markets is extensive,” Prime Minister Marape said.
“What is required now is for us to step up as producers.”
Call to Provincial Governments
The Prime Minister issued a direct call to all provincial governments to take stock of their economic resources and work closely with the National Government.
“I call upon all provincial governments to undertake a comprehensive assessment of the resources within your provinces,” he said.
“I will work with the National Government to identify how best we can partner in ramping up productivity in every province and region, so that together we can position Papua New Guinea as a reliable supplier to international markets.”
Export Opportunities Favour PNG Producers
Prime Minister Marape noted that current exchange rates provide strong incentives for exporters.
“At present, the kina exchange rate is favourable for exporters,” he said.
“When you export, you earn more. This is an opportunity we must seize.”
He encouraged businesses, farmers, cooperatives and producers across the country to take advantage of existing market access and rising global demand.
“While the global economic outlook remains uncertain, let us focus on what we can control,” he said.
“Let us produce to supply markets that are already within our reach. The world has a growing need for what Papua New Guinea can offer — and now is the time for us to step up in production.”