IMF Staff Country Reports

This paper presents Papua New Guinea’s 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, Modification of a Quantitative Performance Criterion, and First Review under the Arrangement under the Resilience and Sustainability Facility (RSF). Papua New Guinea’s economic outlook remains positive as structural reforms continue to bear fruit. The outlook is subject to significant downside risks, as Papua New Guinea is vulnerable to both domestic and external shocks. Program performance has remained satisfactory, with the authorities displaying a sustained commitment to reforms. Reforms under the new RSF arrangement will help the authorities build resilience against climate-related risks and address structural balance of payments vulnerabilities. The IMF-supported programs will continue to support Papua New Guinea’s homegrown reform agenda, focusing on strengthening debt sustainability, alleviating foreign exchange shortages, fostering good governance, and building climate resilience, while protecting the vulnerable and promoting inclusive and sustainable growth.