Prime Minister, James Marape this week held high-level bilateral discussions with senior World Bank Group executives at Melanesian Haus in Port Moresby, focusing on Papua New Guinea’s economic transformation agenda, fiscal consolidation progress, and the country’s long-term ambition to become a major food supplier to Asia and the Pacific.
The World Bank delegation was led by Carlos Felipe Jaramillo, World Bank Vice President for East Asia & Pacific, and Sarvesh Suri, IFC Regional Vice President for Asia and the Pacific.
Discussions covered PNG’s macroeconomic outlook within the broader Southeast Asian and global context, with emphasis on agriculture, trade, food security, SME development, energy expansion, and fiscal discipline.
Prime Minister Marape told the delegation that Papua New Guinea must rebalance its economy to ensure inclusive growth and broader wealth distribution.
“The hype and buzz that oil, gas and mining alone will carry our country is a myth,” he said. “In the 1970s and 1980s, our economy was about 80 per cent agriculture and 20 per cent minerals. Today it is the reverse. We must restore balance.”
He noted that deliberate focus since 2019 on revitalizing agriculture and strengthening the Non-Extractive or Sustainable Resource Sector is delivering results.
“For the first time in our country’s history, we have posted above four (4) per cent growth in the Non-Mineral Sector in the last four years,” he said.
The Prime Minister highlighted reforms including the establishment of a dedicated Coffee Ministry to drive sectoral growth. “For me, coffee is the easiest and lowest entry point to get our people engaged in agriculture,” he said.
Prime Minister Marape emphasized that PNG’s landmass and proximity to major Asian markets position the country uniquely to contribute to regional food security.
“We live within eight hours of flight to all major cities in Asia,” he said, noting that billions of consumers are within PNG’s immediate reach.
“Food security will be the major global issue — if not today, then very soon,” he said. With 462,840 square kilometers of land — larger than many developed nations — PNG has the physical capacity to expand agricultural output significantly. “Every day people need food. Gold and petroleum are secondary. Food is essential,” he added.
He outlined the Government’s strategy of transitioning rural citizens from subsistence activity to structured, income-generating agriculture supported by improved access to finance, land mobilization frameworks, irrigation systems, and complete supply-chain development.
A key part of discussions centered on Papua New Guinea’s fiscal consolidation efforts in recent National Budgets.
Prime Minister Marape briefed the World Bank team on the Government’s strategy over the past several years to reduce debt levels, tighten expenditure controls, broaden revenue collection, and strengthen budget discipline.
Successive Budgets have focused on narrowing the fiscal deficit while protecting priority investments in health, education, infrastructure, agriculture, and law and order.
The Prime Minister reiterated that the Government’s medium-term objective remains clear — to achieve a balanced budget and move toward surplus by 2027.
“Our fiscal pathway is disciplined and deliberate. We are reducing debt exposure, improving revenue performance, and managing expenditure responsibly so that by 2027 we return to Budget balance,” he said.
The World Bank delegation acknowledged the steady fiscal consolidation trajectory and congratulated the Prime Minister and his Government for maintaining macroeconomic stability while pursuing structural reforms.
The team recognized improvements in fiscal management, efforts to contain debt growth, and reforms aimed at strengthening public financial management systems.
Prime Minister Marape noted that debt reduction and economic stability are essential foundations for investor confidence and long-term growth.
“We understand that macroeconomic stability underpins everything else — agriculture growth, SME expansion, energy development and investor confidence. We are committed to responsible financial management,” he said.
Prime Minister Marape expressed appreciation for the World Bank Group’s long-standing engagement in Papua New Guinea across agricultural productivity and rural development programs, SME access to finance initiatives, energy sector reform and rural electrification projects, education infrastructure and learning improvement support, and disaster risk management and climate resilience programs.
He acknowledged the role of the International Finance Corporation in catalyzing private sector investment and supporting regulatory reforms that improve the business environment.
“As a member of the World Bank Group and IFC, we value your partnership. We want every dollar of support to translate into tangible impact for our people,” he said.
The Prime Minister also highlighted PNG’s 50-year record of constitutional democracy and political stability as a solid platform for continued economic reform and international partnership.
As Papua New Guinea prepares to mark its 50th Independence Anniversary this year, he stated that the Government is driving a long-term economic reset — diversifying away from narrow extractive dependence toward inclusive, agriculture-led growth backed by sound fiscal management.
“Our land is our strength. Our people are our greatest asset. With the right partnerships, fiscal discipline, and strategic focus on food production, Papua New Guinea can become a food basket for Asia and the Pacific,” Prime Minister Marape said.