Papua New Guinea: Sixth Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Extended Credit Facility, Request for a Waiver of Nonobservance of Performance Criterion, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea

Despite a fragile socio-political environment, the Papua New Guinea’s (PNG) authorities have steadily implemented their homegrown reform agenda, demonstrating strong commitment to the program objectives. Fiscal repair has proceeded as planned through greater revenue mobilization and expenditure rationalization; the overvaluation of the Kina has greatly narrowed, contributing to the easing of foreign exchange (FX) shortages; and the Bank of PNG’s (BPNG) governance and autonomy have been strengthened. Reforms to address weakness in governance and mitigate balance of payments risks posed by climate change have advanced as well. While the outlook is subject to a high degree of uncertainty, economic prospects are projected to remain favorable and largely supported by the resilience of the non-resource sector.