Papua New Guinea, officially the Independent State of Papua New Guinea, is an Oceanian country that occupies the eastern half of the island of New Guinea and its offshore islands in Melanesia, a region of the southwestern Pacific Ocean north of Australia. Its capital, located along its southeastern coast, is Port Moresby. The western half of New Guinea forms the Indonesian provinces of Papua and West Papua.
Papua New Guinea is one of the most culturally diverse countries in the world; 852 languages are listed for the country, of which 12 have no known living speakers. Most of the population of over 7 million people live in customary communities, which are as diverse as the languages. It is also one of the most rural, as only 18 percent of its people live in urban centers. The country is one of the world's least explored, culturally and geographically; many undiscovered species of plants and animals are thought to exist in the interior, as well as groups of uncontacted people.
Papua New Guinea’s banking sector consists of four commercial banks and various other licensed financial institutions and credit unions. In 2002 the former Papua New Guinea Banking Corporation merged with Bank South Pacific Ltd, making it the largest bank in the country. The other large commercial banks are Westpac (PNG) Ltd, ANZ (PNG) Ltd and Maybank (PNG) Ltd, all of which function as subsidiaries of international banks. In 2012 there were 22 registered Savings and Loans companies in the country and ten other non-bank financial institutions including investment and microfinance companies.
|Agriculture||Wheat, rice, grains, sugar, potatoes, grapes, strawberries.|
|Manufacture||petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement.|
|Services (Including financial)||32.4% (2011 estimate)|
|Airlines of Papua New Guinea||Transportation|
|Bank South Pacific Limited||Banking|
|City Pharmacy Limited||Pharmacy|
|Credit Corporation (PNG) Limited||Finance|
|Cue Energy Resources||Energy|
|Highlands Pacific Limited|
|Indochine Mining Limited||Mining|
|InterOil Limited||Oil and Energy|
|Bank South Pacific Limited||Banking|
Port Moresby Stock Exchange is the principal stock exchange of Papua New Guinea. It is located in Port Moresby and it was founded in 1999. Its name is abbreviated to "POMSoX". At the time of its founding POMSox was funded by the Bank of Papua New Guinea, which is the central bank of Papua New Guinea.
According to POMSoX's website, "POMSoX is closely aligned to the Australian Stock Exchange (ASX). The ASX has licensed to POMSoX its Business and Listing Rules. POMSoX procedures are a mirror image of the ASX."
The 2016 Budget has failed as a result of lower economic growth, lower than budgeted commodity prices, a failure to secure the $US1 billion sovereign bond and the $US300 million International Finance Corporation loan, and failure to adjust immediately to cushion the effect of these changes. Revenue is likely to be about K800 million lower than expected, and the financing shortfall is heading towards K1.3 billion, so there is a K2.1 billion hole in the Budget. Delivery of essential services such as health, education, transport, and productive infrastructure continues to worsen. Debt servicing costs in the 2016 Budget of K1.5 billion are now higher than spending on individual essential services such as health, education, and transport.
The The government has stated that public debt is K18 billion. Government debt is far higher than the Government is admitting, because it excludes all the off-balance-sheet liabilities, such as borrowings by State-Owned Enterprises, the UBS loan, unfunded superannuation, and other contingent liabilities. Taking into account all these other hidden liabilities, true debt is likely to be at least K28 billion, almost 50 percent of GDP and almost double the maximum 30 percent permitted by the Fiscal Responsibility Act. The 2016 debt servicing cost of K1.5 billion is about 10 percent of expenditure.
Lack of cash is severely reducing the delivery of essential services such as health and education, preventing full and timely payment of wages and entitlements to public servants and causing businesses to close or sack staff because of non-payment of government bills. Continued foreign exchange rationing is adding to cash flow pressures.
There is a shortage of foreign exchange, with the value of the kina collapsing and foreign reserves dwindling. In early 2012 the kina was worth 47 US cents, but today it is worth only 30 US cents. Over the same period, foreign currency reserves have fallen from $US4.7 billion to $US1.7 billion, officially estimated to be 10 months import cover. But talking about 10 months import cover is disingenuous: $1.7 billion reserves are overstated because the Central Bank is not meeting foreign exchange demand, and $170 million imports per month are understated because companies can’t get foreign exchange. Adjusting for those two factors and allowing demand to be met, and Papua New Guinea only has one to two months of import cover. On top of this, there is demand for foreign exchange to meet capital and financial commitments, including the forthcoming need for Kumul Petroleum to complete the refinancing of the K3 billion UBS Oil Search loan, in foreign currency.
Preventive measures need to be taken like, faults and blockages in the systems and processes that have allowed waste, mismanagement, and abuse to flourish must be identified and remedied. In particular economic and financial management tools must be sharpened, then applied. Transparency and accountability need to be dramatically improved so that the country’s real financial position is known with certainty. For example, the Central Bank recently announced that the National Statistical Office had calculated that GDP had risen from K51 billion in 2015 to K64 billion today. That increase, which has not been explained, included a rise in 2006 GDP by an extraordinary 48 percent, and 35% in 2013. As a result, the economy is suddenly one-third bigger!
Papua New Guinea is classified as a developing economy by the International Monetary Fund. Strong growth in Papua New Guinea's mining and resource sector led to the country becoming the sixth fastest-growing economy in the world in 2011, although growth was expected to slow once major resource projects came on line in 2015. Mining remains a major economic factor, however, with talks of resuming mining operations in the previously closed-off Panguna mine ongoing with the local and national governments. Nearly 40 percent of the population lives a self-sustainable natural lifestyle with no access to global capital.
At the local level, the majority of the population still live in strong customary societies and – while social life is overlaid with traditional religious cosmologies and modern practices, including conventional primary education – customary subsistence-based agriculture remains fundamental. These societies and clans are explicitly acknowledged within the nation's constitutional framework. The Papua New Guinea Constitution expresses the wish for "traditional villages and communities to remain as viable units of Papua New Guinean society" and for active steps to be taken in their continuing importance to local and national community life.
At the national level, after being ruled by three external powers since 1884, Papua New Guinea established its sovereignty in 1975 following almost 60 years of Australian administration. It became a separate Commonwealth realm with Queen Elizabeth II as its head of state and became a member of the Commonwealth of Nations in its own right.
The kina is the currency of Papua New Guinea. It is divided into 100 toea. The kina was introduced on 19 April 1975, replacing the Australian dollar at par. The name kina is derived from Kuanua language of the Tolai region, referring to a callable pearl shell used widely for trading in both the Coastal and Highlands areas of the country.
In 1975, coins were introduced for 1, 2, 5, 10 and 20 toea and 1 kina. The 1 and 2 toea were minted in bronze, with the others in cupro-nickel. The 1 kina is round and hole in the center, this denomination was reduced in size starting from 2006, and the larger coin was demonetized from the 31 December 2008. 2008 also saw the introduction of a bimetallic 2 kina coin intended to replace the 2 kina note. The withdrawal of the 1 and 2 toea coins also occurred in 2006 and as from the 19 April 2007 are also no longer legal tender. In 1980, 50 toea coins were introduced but only issued in commemorative form without a standard design.
On 19 April 1975, notes were introduced for 2, 5 and 10 kina that replaced the Australian dollar at par, so the colour scheme was the same. They circulated along with the dollar until the 1 January 1976 when the dollar ceased to be legal tender. The 20 kina was introduced in 1977, 50 kina in 1988, followed by 100 kina in 2005. All coloration of the individual denominations is the same as current and former Australian decimal currency. Beginning in 1991, Papua New Guinea's banknotes have been produced on the polymer, although in 2009 the bank issued Kina & Toea Day commemorative notes on paper substrates.
A new issue of banknotes has been issued starting with the 50 kina in 1999, then the 100 kina in 2005, 2 and 20 kina in 2007 and the 5 and 10 kina in 2008. This makes all the denominations of the kina issued in the polymer. Paper bank note ceased being accepted by the Bank of PNG from the 31 December 2014, and are no longer legal tender
|National Song||"O Arise, All You Sons"|
|Currency||Papua New Guinean kina (PGK)|
|Languages||Tok Pisin,English,Hiri Motu|
|GDP / GDP Rank||28.013 Billion USD|
|GDP Growth Rate||9 Percent|
|GDP Per Captial||$3540.976 (PPP)|
UTC+10:00 — most of the country
UTC+11:00 — Autonomous Region of Bougainville (Bougainville Standard Time)
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
Queen – Elizabeth II[γ]
Prime Minister – Peter O'Neill
|Website||Go to the web|
|Public Debt||33.475 Percent|
|Unemployment Rate||2.489 Percent|
|Labor Force (Occupation)||-|