An International Monetary Fund (IMF) team led by mission chief Nir Klein concluded a visit to Port Moresby, Papua New Guinea (PNG), from September 25 to October 8, 2025. The purpose of the visit was to assess the country's progress under its economic reform programs supported by the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF).
At the end of the mission, Mr. Klein stated: “I am pleased to announce that IMF staff and the PNG authorities have reached a staff-level agreement on policies needed to complete the fifth reviews of the ECF and EFF arrangements and the second review of the RSF arrangement. Upon approval by the IMF Executive Board, the completion of these reviews would allow for the immediate disbursement of SDR121.07 million (approximately US$165 million) under the ECF-EFF arrangements and SDR39.48 million (approximately US$54 million) in financing under the RSF arrangement. This would bring the total IMF financial support disbursed thus far under these arrangements to SDR622.48 million (approximately US$853 million).”
Mr. Klein noted that PNG’s economic outlook remains positive, with growth expected to reach 4.5 percent in 2025, up from an estimated 3.8 percent in 2024. He attributed this growth to increased production at Porgera gold mine, improved access to foreign exchange, and favorable agricultural output. Inflation is projected to rebound in 2025 after a period of low rates, while international reserves are anticipated to remain adequate.
He added: “Performance under the Fund-supported programs has been satisfactory. The authorities have also made steady progress in implementing their structural reform agenda and demonstrated strong commitment to program objectives. All, but one, quantitative performance criteria and indicative targets set for end-June 2025 were met, and most structural benchmarks due by end-September 2025 were implemented. Two RSF reform measures scheduled for this review are on track to be implemented in the coming weeks.”
According to Mr. Klein’s statement, key reforms have included reducing fiscal deficits, improving foreign exchange access, establishing anti-corruption frameworks, and enhancing disaster data availability for climate-related decision-making.
The government continues its efforts toward fiscal consolidation as part of a long-term budget repair plan aimed at balancing its budget by 2027 through both revenue generation and controlled spending.
On monetary policy developments, Mr. Klein said: “The Bank of Papua New Guinea (BPNG) has continued to actively implement its roadmap of reforms to help alleviate FX shortages, gradually return to Kina convertibility, and modernize its monetary policy operations.” He highlighted improvements in foreign exchange access during 2025 as well as recent changes in interest rate settings designed to maintain consistency with exchange rate goals.
Mr. Klein also pointed out ongoing anti-corruption efforts through PNG's Independent Commission Against Corruption (ICAC), noting increased investigation capacity despite challenges.
Regarding climate resilience initiatives supported by IMF financing mechanisms such as RSF arrangements, authorities have worked on strengthening disaster risk management practices and integrating climate considerations into infrastructure planning.
Mr. Klein concluded: “The IMF will continue to work closely with the authorities and stands ready to help them, not only through financing and policy advice but also through capacity development coordinated with other partners.” He acknowledged meetings held with key government officials including Minister for Treasury Ling-Stuckey; Governor Genia; Secretary Oaeke; Deputy Governor Yabom; as well as representatives from private sector organizations and development partners.