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This chapter examines Papua New Guinea’s legal framework, offering insight into the legislative powers of the government, laws that affect foreign companies, newly enacted securities legislation and other areas of interest to investors. It also contains a viewpoint from Peter Lowing, Partner, Leahy Lewin Lowing Sullivan Lawyers.

This chapter examines Papua New Guinea’s tax regime, focusing on corporate income tax, the introduction of capital gains tax as part of a five-year plan, double taxation agreements with other countries and other key subject areas. It also contains a viewpoint from Jonathan Seeto, Territory Senior Partner, PwC.

While Papua New Guinea’s economy remains dominated by the agriculture, fisheries, forestry and extractives industries, tourism has been identified by government actors as an important source of economic diversification and sustainable development. With around 462,840 sq km of largely untouched land, a wide variety of indigenous flora and fauna, and immense cultural diversity as evidenced by its 852 known languages, PNG has promising tourism potential. Nevertheless, PNG’s tourism industry is seen by many as a key area of potential with significant development opportunities. This chapter contains an interview with Ann Sherry, Chairman, Carnival Australia.

While still lagging behind many of its neighbours in the Asia-Pacific region, the ICT sector in Papua New Guinea has seen significant progress in recent years, which has helped ensure expansion of coverage and offerings. An increase in sector investment has helped both local and international companies expand into rural areas, while telecoms providers have also been able to bring more affordable and faster services to a greater share of the population. However, isolated parts of this large and sparsely populated country are still having difficulties in achieving connectivity. To address these challenges the government is looking to improve infrastructure in rural communities and upgrade the mobile data network from 3G to 4G in more parts of the country. This chapter contains an interview with Jacky Xu Qiang, CEO, Huawei Pacific.

Papua New Guinea’s fertile soils are instrumental in the lives of the country’s residents, both as a source of income and nutrition. The agriculture sector has constituted between 25% and 40% of GDP over the last four decades, while supporting the livelihoods of around 85% of the population. Despite the sector’s importance, however, the evolution of farming has long been restricted by insufficient foreign investment, limited public spending of around 2% of GDP per annum, ambiguous land policies, major infrastructure gaps and a lack of access to credit at the smallholder level. This chapter contains interviews with Greg Worthington-Eyre, CEO, Trukai Industries; and Ritche Rivera, Vice-Chairman, RD Corporation.

Industry has emerged as one of the bright spots in Papua New Guinea’s economy in recent years, providing a buffer against downturns in the commodity cycle. As natural gas prices fell and related businesses struggled, manufacturing held its own. The weak currency and the lack of foreign exchange that accompanied the downturn may have actually helped matters, as trouble sourcing dollars encouraged the consumption of domestic products. Efforts to reduce foreign currency outflows by encouraging self-sufficiency and curbing over-reliance on imports have also supported the sector. With a more relevant and consistently enforced legal framework, which includes the imposition of protective tariffs on products that are produced locally, PNG businesses have a better chance to compete. This chapter contains interviews with Chey Scovell, CEO, Manufacturers Council of PNG; and Ian Clough, Chairman, Brian Bell Group.