This is according to the latest analysis by the Asian Development Bank's economists.
While more efficient public spending could yield large savings, they suggest more needs to be done to arrest the downward pressure on the currency.
The latest edition of the Pacific Economic Monitor also states that PNG has been hardest hit among Pacific economies.
This has been evident through the fall in commodity prices, worsened by the impact of El Nino and a prolonged drought.
The ADB’s PNG Country Economist, Yurendra Basnett, is the lead author for the PNG section of the publication.