PNG’s Economy ‘Held Hostage by Debt,’ O’Neill Warns
Papua New Guinea’s former Prime Minister Peter O’Neill has accused the Marape administration of mortgaging the nation’s future through excessive borrowing, claiming the International Monetary Fund (IMF) has now stepped in to demand financial discipline.
O’Neill said the IMF’s directive to return PNG’s debt-to-GDP ratio to about 35 percent underscored global concerns over the country’s economic stability. He argued that Marape’s borrowing spree had pushed national debt to K65 billion, up from K25 billion in 2019.
He dismissed the Prime Minister’s tendency to blame past governments, saying Marape’s 14 years in senior roles left him accountable. “He has been in charge too long to hide behind excuses,” O’Neill stated.
The former leader said the IMF’s warning of “Nogat Moni, Nogat Loan” had forced the government into desperate measures, including taking control of key state enterprises and selling public assets.
He claimed that in 2019, PNG’s economy was smaller but more stable, and citizens benefited from investments in education, health, and infrastructure funded through responsible borrowing. “We didn’t trade our sovereignty for loans,” he said.
O’Neill described today’s PNG as a nation burdened by debt, shrinking freedoms, and growing discontent, saying people were struggling while government leaders celebrated inflated GDP figures.
He called on the Marape government to reflect on the consequences of its policies and warned it could take decades to restore the economy to the strength it had before 2019.
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