Papua New Guinea

In conjunction with DFK Hill Mayberry, OBG explores the taxation system. Tony Canning, Partner, DFK Hill Mayberry, shares a viewpoint on the challenges of establishing a company in PNG.

Decades of underinvestment in PNG’s education sector have led to declining standards: literacy rates had reportedly dropped to as low as 15-25% by 2011, and state spending on universities has fallen tenfold since independence. New state revenues, however, have many optimistic that these trends will be reversed. In 2009, the government abolished school fees for grade 1-10, which has increased...

Given the country’s remoteness from traditional tourist markets, PNG understandably remains a niche market, catering to travellers looking for a truly out-of-bounds experience. PNG’s strategy is not to appeal to the mass market, but to increase its prominence in the adventure tourism sector. One key accomplishment was the passage of a land act that will allow developers to negotiate the use of...

Even though mining revenues account for most of GDP, agriculture is the way of life for about 85% of PNG’s people. Infrastructure difficulties limit the potential for exports, but PNG does specialise in several cash crops, including palm oil, rubber, coffee, cocoa, copra and tea, in addition to fish and timber. The agriculture sector is host to dozens of initiatives to develop high-yielding crops...

The construction sector in PNG has been booming over the past half-decade, driven by major initiatives such the PNG LNG project. The wealth of contracts available has fostered healthy competition between Australian firms, traditionally dominant in the local market, and newly arrived Western companies. Hoever, the influx of money and workers has created a bubble in office and residential prices...

Infrastructure deficits are one of PNG’s most pressing economic concerns, affecting the competitiveness of industry and agriculture while hindering development in the country’s interior. Thanks to increasing revenues, however, the government is now in a position to address its inadequate land and sea transport systems. The first of four development plans will spend $11.7bn on transport over five...