AfricaAsia NorthAsia South and SoutheastAustraliaEuropeLatin AmericaMiddle EastNorth AmericaPacificAmerican SamoaCook IslandsFijiFrench PolynesiaKiribatiMarshall IslandsMicronesiaNauruNew CaledoniaNiuePalauPapua New GuineaSamoaSolomon IslandsTokelauTongaTuvaluVanuatuWallis and Futuna
Find MFAT's information paper on a country or territory. (We don't have information papers on all countries.)
Official Name - The Independent State of Papua New Guinea
Land Area - 452,860 sq km (cf NZ 268,000 sq km)
EEZ - 3.12 million sq km (cf NZ 2.2 million sq km)
Population - 6.4 million (UN, 2008), Population growth 2% (estimated)
Capital City - Port Moresby
Official languages - Tok Pisin (Pidgin English), English and Hiri Moti (around Port Moresby) plus over 800 other distinct languages
Currency - PNG Kina (K)
Exchange rate - NZ$1 = K1.78 (K1 = NZ$0.56), May 2009
Political system -
Pluralist democracy. Executive Power is exercised by the Head of State and the NationalExecutive Council (NEC, Cabinet) chaired by the Prime Minister
National government -
Prime Minister Rt Hon Sir Michael Somare heads the Government and the National Alliance Party (NA).
National legislature -
Unicameral Parliament, 109 elective seats (89open constituencies and 20 provincial constituencies).
Last election -
July 2007
Next election due -
July 2012
Head of State -
Governor General representing Queen Elizabeth II. Sir Paulias Matane was sworn in as Governor-General on 30 June 2004 for a term of five years
Head of Government -
Rt Hon Sir Michael Somare, Prime Minister
Hon Dr Puka Temu
Deputy Prime Minister, Minister for Lands and Physical Planning and Mining
Hon Sam Abal
Minister for Foreign Affairs, Trade and Immigration
Hon Patrick Pruaitch
Minister for Treasury and Finance
Hon William Duma
Minister for Petroleum and Energy
Hon Arthur Somare
Minister for Public Enterprise
Hon Paul Tiensten
Minister for National Planning and District Development
Hon Bob Dadae
Minister for Defence
Hon Michael Laimo
Minister for Education
Hon Benny Allen
Minister for Environment and Conservation
Hon Belden Namah
Minister for Forestry
Hon Dr Allan Marat
Minister for Justice and Attorney-General
Hon Ben Semri
Minister for Fisheries
Hon Sasa Zibe
Minister for Health
Main political parties - National Alliance, Pangu Pati, United Resource Party, United Party, People’s Action Party, National Party, New Generation Party, PNG Party, People’s Progress Party.
GDP -
US$6.4 billion (IMF, 2008 projected)
GDP growth -
4.8% (2009 projected)
GDP per capita -
US$1,027 (IMF, 2008 projected)
Exports of Goods (FOB) -
K$13.87 billion (2007)
Principal Export Goods (K$million)
| Copper | 4,173 |
| Gold | 3,672 |
| Crude petroleum | 2,984 |
| Palm Oil | 672 |
| Forest products | 631 |
| Coffee beans | 408 |
| Cocoa | 261 |
Principal Export markets - Australia, Japan, China, Germany, Philippines, United Kingdom
Import of Goods (FOB) -
K$7.60 billion (2007)
Principal Import Goods (K$million)
| Diesel | 447 |
| Semi milled/wholly milled rice | 164 |
| Machinery parts | 158 |
| Broken rice | 122 |
| Motor and aviation spirits | 88 |
| Sulphides/polysulphides | 82 |
| Fuel Oils | 79 |
| Aircraft | 69 |
| Frozen sheep meat | 66 |
| Jet-A1 (avtur) | 64 |
Principal Import markets -
Australia, Singapore, China, Japan, Malaysia, New Zealand, Indonesia, United States
Current account balance -
0.0% of GDP (2009 estimate)
Total Debt -
External Debt US$1.68 billion (2007), Foreign exchange reserves US$2.08 billion (March, 2008)
Inflation -
7% (2009 Bank of PNG forecast)Top of page
NZ Exports to PNG (FOB) -
NZ$137.723 million year to Dec 2008 (FOB)
Main Exports to PNG (NZ$million)
| Sheep meat | 23.28 |
| Iron or non-alloy steel (clad) | 12.12 |
| Quicklime | 7.42 |
| Milk Powder | 7.28 |
| Textiles | 7.02 |
| Iron or non-alloy steel | 6.24 |
| Aircraft | 4.21 |
| Electric transformers | 3.38 |
| Butter | 3.13 |
| Fish Fillets | 2.94 |
NZ Imports from PNG (CIF) - NZ$121,392 million year to Dec 2008 (CIF)
Main Imports from PNG (NZ$million)
| Petroleum Oils | 108.89 |
| Coffee | 4.04 |
| Timber | 2.32 |
| Oil cake etc, other | 2.09 |
| Dried leguminous veg. flour | 1.78 |
| Plywood | 0.46 |
| Aluminium | 0.32 |
| Confidential items | 0.29 |
| Oil seeds | 0.21 |
Sources: IMF, Asia Development Bank, Bank of Papua New Guinea, Statistics New Zealand
Earliest evidence of human occupation in PNG dates back 50,000 years. Early inhabitants were scattered hunter-gatherer societies who eventually developed extensive networks of trade and ceremonial contact. Europeans had known about New Guinea since first sightings by Portuguese and Spanish navigators in 1512. But it was only in 1828 that the Dutch claimed sovereignty over the western part of the island. In 1884, Germany annexed north eastern New Guinea and the BismarckArchipelago as ‘Kaiser Wilhemsland’. Four years later, the remaining eastern areas became a British colony. In 1914, Australia occupied German New Guinea, and from 1921 administered what had been the British and German sectors under a League of Nations mandate. In 1941 Japan occupied the north. In 1945 Australia was again given responsibility for PNG’s administration under UN trusteeship arrangements. PNG gained independence in 1975.
Though parties and party allegiances within the PNG parliamentary system are fluid, PNG has had an unbroken record of democratic continuity since independence. The independent judiciary and bodies like the Office of the Ombudsman are respected, the media has a free voice, and civil society is active. Instability remains a feature of the PNG political landscape, however. Women are chronically under-represented, with Dame Carol Kidu currently PNG’s only female MP. Work is underway to achieve the nomination of a further three women MPs to Parliament within the next 12-18 months.
Sir Michael Somare returned as Prime Minister following the general election in July 2007. The 2007 election was held under a new ‘limited preferential’ voting system, designed to ensure that successful candidates enjoy more support within their electorates and to encourage more alliance building between parties. Despite some continuing procedural irregularities and an inaccurate common roll, there were relatively low levels of election-related violence (a marked improvement from the previous election in 2002) and election results were generally accepted as valid. Sir Michael’s National Alliance (NA) party won 27 seats out of 109, and formed an alliance with 13 other parties to ensure the support of 86 out of 109 MPs. In mid-August the new Parliament voted overwhelmingly to re-elect Sir Michael as Prime Minister for an unprecedented fourth time since 1975.
An initial 18-month period during which no-confidence motions are not allowed expired in February 2009, and the size and complexity of the coalition could pose risks for the Government’s cohesiveness should fracture lines begin to appear. So far, however, PM Somare appears to have the numbers to remain in control.PNG’s extensive mineral deposits (gas, oil, gold and copper) and other natural resources (forests, fisheries) provide a firm foundation for potential prosperity.
The previous Government put in place a “Medium Term Development Strategy” (MTDS) that pursued “export-driven growth, rural development and poverty reduction, including through good governance and the promotion of agriculture, forestry and fisheries on an ecologically sustainable basis”. Boosted by resurgent commodity prices, PNG has now achieved real GDP growth for several years in a row. Responsible fiscal management has resulted in stable macroeconomic conditions including low inflation and interest rates, a stable kina, a budget surplus and a reduction in the still very high level of public debt. In September 2007 global ratings agency Standard and Poors raised PNG’s long-term currency rating to “B+” due to improvements in macroeconomic and political stability.
Despite this, PNG continues to face huge development challenges. About 85% of PNG’s population rely on subsistence agriculture and fishing for survival, sometimes in some of the most isolated spots on the planet. These communities receive little trickle down benefits from commodity exports, and PNG remains one of the least developed nations on earth. The UNDP’s 2006 Human Development Index ranked it 139th of 177 countries surveyed, lower than any other country in the Pacific. Life expectancy at birth in PNG is only 55.3 years; the infant mortality rate is 69 per 1,000 live births, and maternal mortality 300 per 100,000 live births. Only 57.3% of adults are literate, and only half of all children have access to primary school education. Annual GDP per capita is US$1,027, where it was 20 years ago.
Current GDP growth is not considered sufficient to keep pace with population growth. The economy remains vulnerable to external shocks, particularly from sharp declines in world export commodity prices. Priority issues facing PNG include insufficient health, education, transport and public utilities infrastructures, major law and order problems, difficult land ownership and access issues, corruption and inefficient government, and the threat of environmental degradation and unsustainable resource management by both domestic and foreign operators.
Another issue with potential serious consequences for PNG (and the region) is the rapid spread of HIV/AIDS. The World Health Organisation estimates that 2% (over 100,000) of PNG’s population is HIV positive, with another 150 people infected each month. The government, together with a number of international donors and organisations, are working together on the issue. Coping with HIV/AIDS may yet prove the biggest challenge that independent PNG has faced.
PNG pursues a basic foreign policy of selective engagement, with a primary focus on the Asia-Pacific region. It is a member of the UN, the WTO, the Commonwealth and APEC. It is also an observer at ASEAN and ASEAN Regional Forum (ARF) meetings. As the largest Pacific island state, PNG plays a major role in the Pacific Islands Forum. It hosted the October 2005 Forum meeting and served as PIF Chair in 2005-06, then returned as Interim Chair for most of 2006-07. PNG is also a core member of the sub-regional Melanesian Spearhead Group (MSG).
Its individual external linkages continue to be dominated by its complex and asymmetrical relationship with Australia. Australia currently provides over 80% of all external aid to PNG (an average of A$300 million per annum), and is PNG’s main trading partner (receiving 27% of PNG’s exports, sending 46% of imports). For Australia, PNG is its nearest neighbour and a key part of its immediate security environment. But despite its significant assistance and a wide range of bilateral historical, cultural and sporting ‘people-to-people’ links, Australia’s relationship with PNG can be delicate. The Australian Government has sought to introduce renewed warmth into the bilateral relationships, with PM Rudd making a successful bilateral visit to PNG in early 2008.
PNG shares a land border with Indonesia, which brings with it the task of responding to the sensitive secessionist ambitions of some groups in West Papua. PNG has also continued a policy of engagement with countries in Southeast and North Asia. Engagement with China has been particularly intense and fast-growing, with PNG receiving substantial Chinese aid and investment (China is now PNG’s second largest trade partner behind Australia). PNG has also consolidated links with Malaysia, the Philippines, SouthKorea, Japan and others over the last decade.Diplomatic links were formally established soon after PNG achieved independence in 1975, building on official New Zealand representation in the country before that. The relationship now includes regular political-level consultations, a large development assistance programme, defence co-operation activities and a network of commercial and business linkages. Up to two and a half thousand New Zealanders are estimated to live and work in PNG, although few New Zealand businesses have a PNG presence.
There are regular high level visits between the two countries. Amongst other contacts, in recent years Foreign Ministers from both countries have met regularly to discuss regional and international issues of interest, and to promote developments in the bilateral relationship. New Zealand Prime Minister John Key’s first bilateral engagement was with Sir Michael Somare en route to the 2008 APEC meeting in Lima, which was followed by a bilateral engagement between Foreign Ministers Hon Samuel Abal and New Zealand’s Hon Murray McCully. Prime Minister Key and Foreign Minister McCully also visited Port Moresby in January 2009. PNG Governor-General Sir Paulias Matane visited NewZealand in February 2006, and Trade Minister Hon Paul Tiensten visited in June 2006, both as guests of our government. Dame Carol Kidu, Minister for Community Development visited as a partial guest of government in November 2008 and again in March 2009.
New Zealand and PNG are close partners at both the regional and bilateral levels. We share common views on a range of international issues and co-operate actively in the many multilateral and regional bodies in which we are both members. NewZealand played a pivotal role in establishing the “Friends of PNG” group, which was instrumental in offering international support to the country during its financial crisis in mid 1999.
In trade, PNG is New Zealand’s second largest market in the Pacific region (behind Fiji, not including Australia) with our exports to December 2008 valued at NZ$138 million, a 16% increase on 2007.
Defence co-operation between New Zealand and the Papua New Guinea Defence Force (PNGDF) is conducted under the Mutual Assistance Programme (MAP). A number of PNGDF personnel receive staff and trade training in NewZealand at Waiouru or through attachments to the Officer Cadet School. ANew Zealand Defence Adviser is based in Port Moresby.
NewZealand’s bilateral ODA programme in PNG is the second largest New Zealand programme, behind our contribution to the Solomon Islands. In 2008-09 the programme totalled NZ$23.5 million. Programme focus areas currently comprise health, primary education, law and order, governance, civil society and rural development.
The programme makes provision for assistance to Bougainville including economic and social development projects on Bougainville, capacity building for the Bougainville administration, and support for the law and justice sector through the community policing project and local NGOs.
NewZealand’s involvement in the Bougainville peace process and subsequent peace monitoring missions was a special chapter in New Zealand-Papua New Guinea relations, and remains a key pillar in our bilateral relationship.
The Bougainville crisis and separatist insurgency lasted from 1989-1997, and was sparked by local landowner concerns over the operation of the Panguna copper and gold mine. NewZealand became actively involved in ending the conflict from 1997, when hosting and mediating a series of meetings between parties. The peace process concluded with the signing of the Bougainville Peace Agreement in August 2001. This was given legal effect in PNG through the unanimous adoption of the 2002 Bougainville Peace Agreement Act, which provides for greater autonomy for the Bougainville within the PNG state and a referendum on independence in 2015.
New Zealand also led the initial truce-monitoring group that deployed to Bougainville in 1997 and was the second largest contributor (after Australia) to the later Peace Monitoring Group.
The most significant milestone in the Bougainville peace process so far came in 2005 with the direct election and inauguration of the first Autonomous Bougainville Government (ABG) under the leadership of President Joseph Kabui. Following Kabui’s sudden death on 6 June 2008, Bougainville held fresh Presidential elections in December 2008, won by James Tanis. He will hold office for the remainder of the current Presidential term to 2010. The establishment of the ABG was an affirmation of the peace process. The ABG has a strong mandate to rebuild Bougainville, but this phase is as fragile and complicated as those that have preceded it. The ABG still needs to develop the Bougainville economy to a point where it can deliver essential social services and infrastructure and increase the well-being of local people.
The Safetravel website provides a travel advisory for travellers to Papua New Guinea [external link].
NZ citizens require visas to visit PNG, and PNG citizens need a visa to visit NZ.top of page
