Papua New Guinea: 2025 Article IV Consultation, Fourth Reviews Under the Extended Arrangement Under the Extended Fund Facility and the Arrangement Under the Extended Credit Facility, Requests for a Waiver of Nonobservance of Performance Criterion, Mod

Papua New Guinea (PNG) is navigating a wide range of macroeconomic and social challenges. The economy was beset by a series of exogenous shocks over the past decade, including low commodity prices, droughts, earthquakes, and the COVID-19 pandemic, which adversely affected growth, contributed to foreign exchange shortages, and pushed up public debt. The outlook is positive, but the economy remains in a fragile state—including from further negative effects of climate change—and is facing significant development and climate adaptation gaps. This calls for a continued implementation of a multipronged reform agenda aimed at promoting inclusive, sustainable, and resilient growth.