PNG Prime Minister Praises Resource Sector as Nation’s Economic Backbone

Papua New Guinea Treasurer Ian Ling-Stuckey has announced that the country's debt stock is projected to reach K65 billion by the end of 2025. Speaking in Parliament, the Treasurer outlined the government's fiscal outlook, indicating that borrowing will continue to rise before the country sees a return to surplus.

Papua New Guinea Treasurer Ian Ling-Stuckey [Parliament photo]

Ling-Stuckey further revealed that the national debt is expected to peak at K66 billion in 2026. However, he gave an assurance that the government remains committed to achieving a budget surplus by 2027. He said this surplus will be used to begin repaying the country's debt burden.

The Treasurer noted that despite the rise in borrowing, the country’s debt-to-GDP ratio continues to decline. He explained that this means PNG’s ability to repay its debts, when measured against the size of its economy, is improving over time.

The remarks were made in response to questions raised by Chuave MP James Nomane, who expressed concern over the growing debt levels. Nomane sought clarity on what steps the government is taking to reduce borrowing and strengthen the country’s financial position.

Ling-Stuckey responded that the government is taking a responsible approach to economic management, with plans to improve revenue collection, control spending, and stimulate economic growth. He said these efforts are crucial in returning PNG to a stronger and more sustainable fiscal footing in the years ahead.

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PNG Prime Minister Praises Resource Sector as Nation’s Economic Backbone