The 2026 Economic Reset: Government and Private Sector Align for Shared Prosperity

Feb 6, 2026

On February 3, 2026, the Business Council of Papua New Guinea (BCPNG) convened the 16th Prime Minister’s Back to Business Breakfast at the Stanley Hotel in Port Moresby. Bringing together leaders from government, the private sector, the diplomatic community, and broader stakeholders, the landmark event served as the official launch of this year’s Praivet Gavamani Konekt (PGK) 1 series. The event centred on the theme, “Harmonizing the Economy—Aligning Partnerships, Investments, and National Priorities for Shared Prosperity,” and was proudly supported by principal sponsor, Kina Bank.

“Game On”: Business Council PNG Opening Remarks

“Game On” were the defining words of the 16th Prime Minister’s Back to Business Breakfast, as Business Council of PNG President, Mrs. Susil Nelson-Kongoi, emphasised that Papua New Guinea’s progress depends on strong alignment between government, business, and communities. She underscored the need to harmonise the economy by ensuring partnerships, investments, and national priorities work together to deliver shared prosperity, stressing, “The strength of our country does not come from any one institution, sector, or individual—it comes from how we work together.”

Mrs. Nelson-Kongoi highlighted the Government’s role as the country’s largest investor through major initiatives such as Connect PNG and the Medium-Term Development Plan IV, positioning public investment as a key catalyst for economic momentum and increased private sector participation. However, she stressed that accelerating growth requires Papua New Guinea to “get the basics right,” pointing to persistent challenges including foreign exchange shortages, infrastructure and utility gaps, security concerns, governance weaknesses, and regulatory constraints that continue to affect investor
confidence.

She further called for stronger public–private partnerships and increased private sector leadership, particularly across emerging sectors such as technology, green business, diaspora engagement, and PNG’s growing sports economy. Mrs. Nelson-Kongoi concluded with a strong call to action for stakeholders to work collaboratively and decisively to drive sustainable growth, innovation, and inclusive national development — urging partners to “Finish First.”

Economic Outlook and Resilience 2026: Kina Bank

Kina Bank Chief Executive Officer and Managing Director, Mr. Ivan Vidovich, appointed in 2024, delivered a cautiously optimistic outlook for 2026 despite ongoing global economic volatility. He forecast GDP growth at approximately 4 percent, largely driven by performance in the non-resource sector, including cocoa and copra oil production. Inflationary pressures are expected to rise slightly to around 4.2 percent, influenced by Australian interest rate movements and a strengthening Australian dollar impacting import costs.

Kina Bank continues to position itself as a disruptor within Papua New Guinea’s financial landscape, highlighting several key innovations. These include the launch of Kina Pay, a tap-and-pay mobile payment solution, and the upcoming rollout of a new Corporate Online Banking platform. These initiatives reflect Kina Bank’s strategy to reduce the cost of banking through digital-first solutions while promoting greater financial inclusion.

Mr. Vidovich also outlined the bank’s broader strategic shift towards deepening domestic financial markets, including plans to issue the first PNGX-listed corporate bond under new legislation. The initiative aims to establish a benchmark for local currency funding while supporting institutional growth and expanding domestic investment opportunities. He concluded by affirming the shared responsibility of national stakeholders, stating, “As business leaders, policy makers and development partners, our task is clear: to steer Papua New Guinea towards a future of shared prosperity.”

K200 Billion Vision: Marape-Rosso Government

At the Breakfast, Prime Minister Hon. James Marape declared 2026 the “Year of the Reset,” outlining the Government’s long-term fiscal and economic vision. He noted that Papua New Guinea’s economy has grown from approximately K79 billion in 2019 to K132 billion today, with an ambitious target of reaching K200 billion by 2030.

Emphasising that “we must be strong in every sector,” the Prime Minister highlighted the Government’s transition from what he described as “artificial” economic stability toward a production-driven economy. Key drivers include the Connect PNG infrastructure program, particularly the “Road to Port” strategy, alongside strategic national investments such as the Government’s 51 percent equity participation in the Porgera mine, aimed at strengthening economic sovereignty and long-term self-reliance.

Prime Minister Marape also introduced the “Reset@50” Artificial Intelligence agenda, aimed at modernising public sector operations and improving governance transparency. He explained that the Government intends to utilise automated systems to “remove human preference and human element from government contracts” and public service appointments.

While acknowledging that market-led currency adjustments may create short-term challenges, the Prime Minister stressed that such reforms are necessary to strengthen economic resilience and reduce dependency on external market pressures. He challenged the private sector to diversify beyond traditional resource industries to help secure long-term sustainable growth.

Panel Discussion: Prime Minister and Kina Bank CEO & Managing Director

The panel discussion, moderated by BCPNG Treasurer Ms. Courtney Boustridge, focused on the critical need to harmonise public investment with private sector capability to achieve shared prosperity. One key issue discussed was the potential grey-listing of Papua New Guinea, anticipated in early 2026, and how businesses, including financial institutions such as Kina Bank, can mitigate its impact on the broader economy.

Prime Minister Marape also outlined opportunities for private sector participation within the Government’s estimated K10 billion public investment pipeline, encouraging businesses to collaborate in infrastructure delivery and economic diversification initiatives.

The session concluded with a strong call to move “beyond dialogue to delivery,” reinforcing the importance of coordinated action between government and industry. While the Government continues to play a central role as the largest investor through initiatives such as Connect PNG, long-term national resilience will depend on private sector leadership, particularly in emerging industries such as technology, green business, and PNG’s expanding sports economy, which together present new
opportunities for job creation and inclusive economic growth.

Strengthening Dialogue for National Progress

The 16th Prime Minister’s Back to Business Breakfast reaffirmed the importance of constructive engagement between government and the private sector in shaping Papua New Guinea’s economic future. Through the Praivet Gavamani Konekt series, the Business Council of Papua New Guinea remains committed to fostering meaningful dialogue that strengthens partnerships between the private sector and government. By continuing to convene leaders, promote knowledge sharing, and advocate for policies that support sustainable economic growth, the Business Council aims to ensure that collaboration remains at the centre of Papua New Guinea’s development journey and shared prosperity agenda.

The Business Council of Papua New Guinea (BCPNG), in partnership with the United Nations Development Programme (UNDP) through the European Union-funded Preventing and Countering Corruption in Papua New Guinea Project, brought together leaders from the judiciary, private sector, government, civil society and development partners for a series of engagements focused on strengthening trust, institutional integrity and confidence in Papua New Guinea’s business environment.

The engagements began on 18 August 2026 at the Hilton Hotel in Port Moresby with the Chief Justice’s Business Breakfast, followed by Private Gavamani Konekt 3 (PGK3). The programme continued on 20 August with a workshop focused on practical tools for strengthening business integrity in the private sector.

Together, the events created a platform for discussing how justice, governance, integrity and innovation intersect with business confidence, investment and sustainable economic development in Papua New Guinea.

Chief Justice’s Business Breakfast: Strengthening Confidence Through Justice and Integrity

Held under the theme “Justice, Integrity and Innovation: Strengthening Markets and Governance in PNG,” the Chief Justice’s Business Breakfast placed the role of strong and trusted institutions at the centre of the discussion.

Chief Justice Sir Gibuna Gibbs Salika highlighted the importance of the rule of law, judicial integrity and institutional confidence in supporting economic activity and national development.

His remarks reinforced the importance of businesses and investors being able to operate in an environment where laws are predictable, contracts can be enforced and disputes can be resolved fairly and efficiently.

The Chief Justice also reflected on continuing reforms within the justice sector, including improved case management, judicial education and the growing use of technology.

Emerging issues such as artificial intelligence, digital evidence, privacy and cybersecurity were highlighted as areas requiring careful consideration as PNG’s justice system and wider economy continue to evolve.

A key message from the breakfast was that innovation must strengthen access to justice, transparency and efficiency while preserving fairness, accountability, judicial independence and sound human judgement.

The discussion also reinforced the connection between strong institutions and the confidence required for investment, commercial activity and long-term economic growth.

PGK3: Connecting Justice, Governance and the Business Environment

Following the breakfast, PGK3 expanded the dialogue through five focused sessions examining issues increasingly important to both government and the private sector.

The forum covered financial crime, anti-money laundering and economic integrity; artificial intelligence, digital evidence and the future of justice; land, the green economy and environmental justice; judicial reform, security and investor confidence; and arbitration, mediation and alternative dispute resolution.

Participants explored how stronger information-sharing, transparency and institutional coordination can contribute to more trusted and resilient markets.

The discussions on financial and economic integrity highlighted the importance of reliable systems, corporate transparency and collaboration between regulators, government agencies and businesses.

Technology also featured prominently throughout PGK3. As more government, financial and commercial systems become digital, the forum recognised the growing importance of cybersecurity, data integrity and responsible approaches to emerging technologies such as artificial intelligence.

The land and environmental justice session considered the need to balance economic development with customary land interests, environmental stewardship and the long-term sustainability of PNG’s natural resources.

Investor confidence and commercial justice were also central themes. Participants considered how efficient judicial processes, predictable regulation and stronger dispute-resolution mechanisms can reduce uncertainty and support a more competitive business environment.

The forum also highlighted the role of mediation and arbitration as practical mechanisms for resolving commercial disputes, potentially reducing delays, transaction costs and pressure on the courts.

Across the discussions, a consistent message emerged: improving PNG’s business environment is not simply about introducing new policies or institutions, but ensuring that existing laws, systems and institutions work effectively and consistently.

Business Integrity Workshop: Moving from Dialogue to Practical Action

The week’s engagements continued on 20 August with the Workshop on Practical Tools for Strengthening Business Integrity in the Private Sector.

The workshop, delivered through the EU-funded PNG Anti-Corruption Project in partnership with UNDP and BCPNG, focused on practical approaches businesses can use to strengthen ethical conduct, compliance and organisational integrity.

Participants examined PNG’s existing anti-corruption framework and considered how private sector organisations can strengthen internal governance and reduce corruption risks.

The workshop also explored a proposed model approach to business integrity, including principles around transparency, accountability, ethical conduct, fair competition, information integrity and responsible engagement with communities.

Whistleblower protection was another important area of discussion, alongside the importance of clear reporting processes, confidentiality and organisational systems that encourage concerns to be raised safely and appropriately.

A strong emphasis was placed on prevention—through education, awareness, clear procedures, ethical leadership and stronger internal systems—rather than relying solely on investigations after misconduct has occurred.

The workshop also provided an opportunity for businesses and stakeholders to contribute practical feedback on how integrity tools could be applied within Papua New Guinea’s private sector.

Building Stronger Institutions Through Collaboration

Taken together, the Chief Justice’s Business Breakfast, PGK3 and the business integrity workshop demonstrated the value of sustained dialogue between the institutions and organisations that influence Papua New Guinea’s economic environment.

For BCPNG, these engagements are an important part of connecting the experiences of businesses with the institutions responsible for justice, regulation, governance and national development.

By bringing the judiciary, private sector, government, civil society and development partners into the same conversation, BCPNG continues to provide a platform for constructive engagement on issues that directly influence business confidence and investment.

The week’s discussions reinforced a clear principle: stronger markets depend on trusted institutions, effective systems and a shared commitment to integrity.

BCPNG will continue to support Government-to-Business dialogue and practical collaboration that contributes to stronger governance, responsible business practices and sustainable economic growth in Papua New Guinea.