AGP Executive Report

Regional Security & Trade: China test-fired a long-range, nuclear-capable missile into the South Pacific hours after Australia and Fiji signed the Ocean of Peace mutual defence pact, with Australia calling it destabilising and PNG among the countries immediately criticising the move. PNG LNG Land Issues: Kikori MP Soroi Eoe says social mapping and landowner identification for PNG LNG remain a concern, with customary landowners saying they were not properly recognised in early studies. Mining Revenue: K92 Mining says it has paid over K527 million in corporate tax this year, estimating total 2026 tax could reach up to K1 billion, while landowner royalty disputes still leave K116 million held in trust. Local Economy & Markets: Hiri-East will get a K480,000 buying-point facility to link farmers to buyers, plus a K280,000 Dogu market project aimed at boosting household income. Tourism Planning: PNGTPA and NCDC launched a National Capital District Accommodation Inventory & Capacity Survey to improve tourism data for investment and event readiness. Governance & SME Fallout: Opposition leader James Nomane renews calls for action over Commerce minister Win Daki, arguing a “minister without portfolio” role amid SME Fund allegations is a “paid holiday.” Blockchain Payments: UNDP expands its Stellar blockchain payments programme beyond pilots, with prototypes already built for Papua New Guinea.

Pacific Security Shock: China test-fired a nuclear-capable long-range missile into the Pacific with a dummy warhead, drawing immediate condemnation from Australia and others, including Papua New Guinea, after Australia and Fiji signed the Ocean of Peace Alliance in Suva. Defence + Economy Deal: Australia and Fiji also signed the Vuvale Union, with Canberra pledging over A$1b (about US$693m) across 10 years, tying security cooperation to climate, health, migration and economic integration. PNG Governance & Integrity: Prime Minister James Marape signalled a Cabinet reshuffle after performance reviews, while also ordering an independent forensic audit into PNG’s SME Fund after allegations over K200m disbursements. Jobs Gap Watch: A World Bank update says PNG’s growth is strong but quality jobs are lagging, with more people pushed into subsistence and informal work. Tourism Planning: PNGTPA and NCDC launched a National Capital District Accommodation Inventory & Capacity Survey to improve Port Moresby event readiness and investment decisions. Gulf Infrastructure Push: Marape launched six Gulf LLG projects worth K315m, including major road and market works. Mining Update: Taruga Minerals’ rock-chip results at Gwamogwamo returned up to 6.9g/t gold and 8% copper, pointing to a larger gold-copper system.

Pacific Security & Trade: Australia and Fiji signed the “Ocean of Peace” defence pact in Suva, adding Fiji as Australia’s fourth treaty-bound ally and locking in mutual consultation over security threats, alongside a broader Vuvale Union deal aimed at deeper economic cooperation. PNG Governance & Business: Prime Minister James Marape signalled a Cabinet reshuffle after a performance review, while also moving to protect SME funding integrity by ordering an independent forensic audit and temporarily shifting Commerce and Industry leadership to Finance Minister Thomas Opa. Jobs vs Growth: A World Bank update says PNG’s economy grew strongly in 2025 (5.6%) on LNG and gold, but formal jobs per capita fell as new workers drift into subsistence and informal work. Mining Watch: Taruga Minerals’ rock-chip sampling at Gwamogwamo returned high-grade gold-copper results up to 6.9g/t Au and 8% copper, with a new target flagged about 900m beyond known trenches. Digital Economy: Digicel PNG says it has completed 5G readiness testing, reporting peak trial speeds up to 1.2Gbps, paving the way for faster connectivity for businesses and consumers. Infrastructure Push: Marape launched a K316m rural infrastructure drive for Gulf Province, targeting roads, bridges and community facilities to connect remote communities.

Rural Development Push: Prime Minister James Marape launched a K316 million infrastructure drive for Gulf Province, aiming to connect communities with roads, bridges and facilities for a country where 86% of people still live in rural areas. Economic Outlook: Westpac says PNG’s economy stayed resilient in the first half of 2026, with growth forecast around 4.6% in 2026, but warns jobs and livelihoods lag as most export earnings come from LNG and mining. SME Integrity Check: Marape ordered an independent audit of the SME funding programme after public allegations, stressing claims are not proven until the review is done. Digital Leap: Digicel PNG says its network has passed end-to-end 5G readiness tests, paving the way for faster, lower-latency services for consumers and business. Agriculture Under El Niño: FAO warns up to 85% of PNG’s agriculture-dependent people could be hit hard, threatening food security and incomes. Health Access: A cross-border healthcare partnership is being explored to make Jayapura Hospital a referral hub for PNG border communities. Business Links: A new PNG–Fiji Business Council is set to help small firms reach new markets and grow jobs. Connectivity Support: The US Embassy launched Starlink at the American Corner in Waigani, backed by US$30m for satellite internet to remote schools and health facilities.

Agriculture & Research: PNG’s Agriculture Minister John Boito launched the National Agriculture Research System (NARS) Policy Framework 2026 in Lae, aiming to modernise research, improve coordination and deliver practical gains for farmers, alongside the World Bank’s agri-food transformation roadmap. Jobs & Growth: The World Bank says PNG’s economy grew strongly in 2025 and remains resilient, but formal jobs are lagging as most new workers move into subsistence farming or low-productivity informal work. SME Funding Integrity: Prime Minister James Marape has ordered an independent audit of the SME funding programme after public allegations over how funds were managed and disbursed. Digital Push: Digicel PNG says its network has passed end-to-end 5G readiness tests, while the US Embassy launched Starlink at the American Corner in Waigani to expand connectivity for schools and public services. Telecom for Business: Digicel’s 5G milestone points to faster, lower-latency services for consumers and improved reliability for commerce and education. Health & Access: PNGDF personnel completed eight weeks of automotive and carpentry trade training under the PNG-Australia partnership, and a cross-border healthcare partnership is being explored to make Jayapura a referral hub for PNG border communities. Regional Trade: The new PNG–Fiji Business Council is set to help small businesses reach new markets and grow jobs through stronger trade links. Climate Risk to Food: FAO warns up to 85% of PNG’s agriculture-dependent population could be hit hard by El Niño, threatening food security and incomes. Resource Sector Focus: PNG Resources Week 2026 will spotlight nation-building beyond the first 50 years, with emphasis on customary landownership and national content.

PNG Economy Watch: Westpac says PNG’s economy stayed resilient in the first half of 2026, with growth forecast around 4.6% in 2026 as exports, better foreign exchange and investment keep momentum going. Governance & Integrity: PM James Marape backs the Ombudsman Commission and ICAC as integrity pillars, while ordering an independent audit of SME funds after public allegations. Digital & Telecoms: Digicel PNG reports its network has passed end-to-end 5G readiness tests, with peak speeds up to 1.2Gbps, paving the way for faster services for consumers and business. SME & Jobs: Kumul Organics expands into City Pharmacy outlets, linking rural coconut farmers to urban retail through the WE PNG BUY PNG push. Elections 2027: IFES warns that adequate funding for the Electoral Commission and police is key to a safe, credible 2027 vote, as unions also call for stronger independence and clearer rules. Food Security Risk: FAO says El Niño could hit up to 85% of people who rely on agriculture, threatening livelihoods and food prices. Resource Sector Focus: PNG Resources Week 2026 will spotlight customary landownership, national content and youth workforce for mining, petroleum and energy beyond the next 50 years. Cross-Border Health: Jayapura Hospital in Indonesia’s Papua region says it’s ready to become a referral hub for PNG through a partnership with PNG health authorities. Business Links: A new PNG–Fiji Business Council aims to help small firms reach new markets and grow trade.

Macroeconomy Watch: Westpac says PNG’s economy stayed resilient in the first half of 2026, forecasting real GDP growth of about 4.6% in 2026 (after 5.5% in 2025), supported by resource exports, improving foreign exchange and ongoing investment. Jobs Gap: A World Bank update backs the growth story but warns that jobs lag, with formal employment per person falling as many new workers stay in subsistence farming and informal work. SME Integrity: Prime Minister Marape has ordered an independent audit of the SME funding programme after public allegations over how funds were managed and disbursed. Digital Push: Digicel PNG reports its network has passed end-to-end 5G readiness testing, with peak speeds up to 1.2Gbps, paving the way for faster services for consumers and businesses. Cross-Border Health: Jayapura’s hospital says it is ready to become a referral hub for PNG through a cross-border healthcare partnership. Election Confidence: PNG Trade Union Congress and others are pressing for clear independence and oversight ahead of the 2027 election, after the appointment of Electoral Commissioner Dr Nicole Haley.

PNG Economic Outlook: Westpac expects PNG GDP growth of about 4.6% in 2026, citing resilient domestic demand, improving foreign exchange conditions and a strong resource export pipeline despite global risks. SME Funding Scrutiny: Prime Minister James Marape has ordered an independent audit of the SME funding programme after public allegations over how funds were managed and disbursed. 5G Readiness Push: Digicel PNG says it has passed end-to-end 5G readiness testing, reporting peak speeds up to 1.2Gbps and paving the way for faster, lower-latency services for consumers and businesses. Jobs Gap Warning: The World Bank says PNG’s growth is not translating into enough quality jobs, with most new workers pushed into subsistence farming and informal work. Election Integrity & Governance: Trade unions are calling for stronger independence and clearer oversight around the 2027 election process, as Dr Nicole Haley takes up the Electoral Commissioner role. Digital Connectivity: The US Embassy launched Starlink at the American Corner in Waigani, backed by a US$30m satellite internet push aimed at remote schools, health facilities and government offices. Tourism & Business Links: The PNG Fiji Business Council has been formed to help small businesses reach new markets and grow trade between the two countries. Resource Sector Focus: PNG Resources Week 2026 will spotlight landownership, youth workforce development and nation-building beyond the first 50 years.

Governance & Appointments: PNG’s Trade Union Congress is pushing for clearer rules on foreign nationals in senior public service roles, after expatriate appointments including Dr Nicole Haley as Electoral Commissioner and two overseas police postings drew scrutiny. Jobs & Growth Reality Check: The World Bank says PNG’s economy is booming on gold and LNG, but jobs for ordinary citizens lag, with most work staying informal and only a small share of the workforce tied to export-heavy sectors. Skills for Industry: Newmont PNG expands trade testing with national accreditation at its Lihir Technical Training Centre, while PNG Defence Force personnel graduate from an Australia-backed vocational program in automotive and carpentry. Infrastructure & Digital Upgrades: New Ireland unveils a record revised K499.57m budget focused on roads and development, and the EU backs a Forest Authority digital communications upgrade to cut costs and improve coordination. Business & Finance: BSP launches a K2.5m community initiative project for Tubusereia Junior High, and CEFI and partners renew financial inclusion efforts through new MoUs. Trade & Exports: PNG coffee exporters project K9.7m in sales after success at Australia’s Melbourne coffee expo. Regional Trade Tools: Australia’s National Measurement Institute donates fuel measurement trolleys to PNG and other Pacific nations to improve fair fuel transactions.

Provincial Finance: New Ireland unveiled a revised K499.57m budget, up from K386m, with K268.3m earmarked for infrastructure and higher mining royalties after gold price gains. Digital & Forest Sector: The EU-backed Forestry-Climate-Change-Biodiversity programme handed PNG Forest Authority new video-conferencing and comms gear to cut costs and improve coordination across 22 provinces. Trade & Exports: PNG coffee exporters project K9.7m in sales after Melbourne’s International Coffee Expo, using the event to win new buyer links. Jobs Reality Check: The World Bank says PNG’s growth is strong (5.6%) but formal jobs lag, with LNG, gold and copper driving most exports while employing only a small share of workers. Mining Strategy: Harmony says its copper push is diversification, not a shift away from gold, with copper expected to reach about 40% of output over the next decade. Governance & Integrity: PNG Trade Union Congress wants clarity on foreign appointments to senior public roles, while Dr Nicole Haley’s Electoral Commissioner appointment moves electoral reform forward. Banking & Inclusion: CEFI and Women’s Micro Bank reaffirmed financial inclusion plans via new MoUs, as BSP rolls out community projects including a Tubusereia junior high hall. Skills & Accreditation: Newmont PNG secured national accreditation for onsite belt splicing trade testing at Lihir, expanding recognised qualifications without leaving the mine site. Infrastructure for Learning: Tubusereia Junior High School in Central Province got high-speed internet via Starlink, aiming to improve teaching and school administration. SME Funding Under Fire: Opposition renewed calls for an independent probe into the K200m SME scheme, challenging how public money is managed. Regional Trade Support: Australia’s National Measurement Institute donated fuel measurement trolleys to PNG and other Pacific states to help regulators verify pump accuracy and protect revenue. Local Industry Value-Add: Oro’s Kararata balsa processing plans and Sepik’s new GI validation for vanilla and cocoa both point to higher-value exports and better farmer returns.

Workforce & Skills: Newmont PNG says its Lihir Technical Training Centre has secured national accreditation to run onsite Belt Splicing trade testing, with 22 technicians completing Level 1 testing and four tradespersons becoming accredited assessors—boosting local certification without leaving the mine site. Governance & Elections: PNG has appointed Dr. Nicole Haley as Electoral Commissioner as the country gears up for the 2027 National General Election, with the government stressing independence and expertise while unions back the move but want solid funding. Digital Connectivity: Lightspeed PNG, with Pasivika Konnect, has connected Tubusereia Junior High School in Central Province to high-speed Starlink internet, including managed access and monthly data support to improve learning and school administration. SME Oversight: The PNG Government is ordering a review of its K200 million SME Support Programme amid renewed calls for accountability over how funds were administered, with Minister Win Daki denying wrongdoing and urging proper legal channels. Energy & Trade Measurement: Australia’s National Measurement Institute has donated fuel measurement equipment (fuel trolleys) to PNG and other Pacific nations to help regulators verify pump accuracy and protect trusted trading. Mining & Environment: Ok Tedi has submitted its ESIA for a Tailings Storage Facility under its Growth 2050 plan, aiming to cut downstream impacts from riverine tailings disposal. Infrastructure & Water: Wau-Waria’s Pinetop community received a new water supply launch plus school fencing and a five-year WASH programme, backed by PNGAust Partnership and ADRA PNG. Business & Finance: Kina Bank is backing young entrepreneurs through a YPOMCCI partnership, while NDB highlights support for small business expansion via timely truck financing.

Trade & Investment Pulse: The Pacific’s biggest-ever export survey is drawing its highest participation in more than a decade, with early signals that exporters are diversifying markets and leaning into digital tools even as finance access tightens. Integrity & Governance: PNG’s Brave Group has partnered with Australia’s Pinnacle Integrity to set up the country’s first integrated Integrity, Cultural Risk and Security Division, aiming to lift workplace investigations, fraud prevention and compliance. SME Funding Under Scrutiny: Commerce Minister Win Bakri Daki faces renewed calls to resign over the K200m SME Support Programme, with opposition pushing for an independent review into how funds and alleged fraud are handled. Mining & Environment: Ok Tedi submitted its ESIA for a new Tailings Storage Facility under its Growth 2050 plan, targeting major cuts in downstream impacts. Agribusiness Exports: Sepik cocoa and vanilla products have cleared the way toward GI status, supporting stronger branding and export opportunities. Climate Watch: PNG’s weather bureau has officially declared El Niño active, raising risks for drought and water stress. Business Finance & Skills: Kina Bank backs young entrepreneurs through a YPOMCCI partnership, while CEFI and the Salvation Army complete a ToT financial literacy push. Infrastructure & Roads: NCD Governor Parkop opened the Erima-Mambu road resealing project, part of broader settlement upgrades.

Household pressure & side hustles: In Port Moresby, rising living costs are pushing low-income families to start small businesses, with one seller at Unity Mall and POM City Market diversifying products from across PNG. Housing demand: Hausples says rental remains dominant, but new home buying interest is climbing, led by middle-market workers and supported by banks simplifying loan processes. Social investment: PNG Sustainable Development Programme says it deployed about US$50m (K219m) in 2025, backed by governance steps like a whistleblower policy. Banking & inclusion: CEFI and Salvation Army finished a ToT financial literacy push, while Wau Waria gets a new Mama Bank access point and a three-year inclusion partnership. SME funding integrity: Government confirms a review of its K200m SME Support Programme amid concerns over administration and calls for transparent delivery through banks. Central banking dividend: BPNG delivered K76.95m to the Consolidated Revenue Fund after a K384.8m 2025 profit. Aviation upgrade: Niusky Pacific moves to modernise air traffic services with digital towers, fibre links and power reliability. Infrastructure for growth: West Sepik gets go-ahead for Sepik Highway contracts under Connect PNG.

BPNG Dividend: Bank of Papua New Guinea has paid K76.95 million to the National Government after a K384.8 million net operating profit for 2025, with the rest moved to general reserves. Education & Housing: Tubusereia Junior High in Central Province says teacher housing shortages are still the biggest barrier to attendance and learning, even as facilities expand. Food Safety: NCDC ran a workshop in Port Moresby telling food businesses that food safety is everyone’s job, with health regulators and councils pushing shared responsibility. Infrastructure & Connectivity: West Sepik’s Sepik Highway contracts were approved under Connect PNG, while Port Moresby launched a K2.5 billion airport redevelopment to boost trade and tourism. Finance & Inclusion: BSP is funding a multipurpose hall for Tubusereia, and Wau Waria is getting a new Mama Bank access point plus a three-year push for financial education. Mining & Regional Trade: PNG will share mining policy experience with Solomon Islands as both move to strengthen mining governance; South Pacific Metals starts exploration at Kili Teke in Hela. Security & Business Disruption: Kiunga schools stayed closed after violence linked to fatal drink-driving incidents, with authorities restoring calm. Climate & Risk: A deep-sea mining campaign warns radioactive material could enter the food chain, while fire services urge communities to avoid bush fires during the dry season.

Central Banking: BPNG paid a K76.95 million dividend to the Consolidated Revenue Fund from 2025 profits, with the rest moved to General Reserves, as it submitted its 2025 annual report and audited statements to the Treasurer. Aviation & Connectivity: Solomon Airlines will launch a scheduled Port Moresby–Honiara service next Tuesday, while Niusky Pacific’s new board backs a major technology push for PNG air navigation, including digital towers, fibre links and power reliability. Mining Reform & Regional Deals: PNG offered Solomon Islands its mining policy and governance experience, with leaders also agreeing to deepen mining cooperation and security ties; Bougainville meanwhile urged Lloyds Metals and Energy to update its taxpayer registration to correctly attribute revenue. Agriculture & Food Security: A World Bank report says PNG can lift farm incomes and jobs by boosting productivity, value chains and investment conditions, as PNG also prepares for more rice support through equipment and farming inputs. Infrastructure & Services: The K2.5 billion Port Moresby airport redevelopment was launched to drive long-term growth, and the K65 million Koroba Level 4 hospital project is progressing to bring specialist care closer to remote communities. Governance & Local Development: CLRC consultations on reviewing District Development Authority laws are expected to start soon, after years of concerns over how DDAs have been used. Business & Community: SP Brewery commissioned a rooftop solar system and opened a new warehouse in Lae, while Project Skul is sending repurposed classroom learning tools to under-resourced schools.

Aviation & Connectivity: PNG has launched the K2.5 billion Port Moresby International Airport redevelopment, a multi-phase upgrade aimed at boosting trade, tourism and long-term growth. Mining Governance & Regional Deals: PNG and Solomon Islands signed a 2026-2030 framework to deepen cooperation on mining reforms, trade, security and investment, with PNG offering governance experience to help Solomon Islands maximise mineral benefits. Exploration & Resources: South Pacific Metals has started exploration at its Kili Teke copper-gold project in Hela after securing landowner and government support, targeting multiple drill-ready prospects. Energy & Industry Investment: SP Brewery commissioned a rooftop solar system and opened a new bulk warehouse in Lae, pushing efficiency and renewable energy plans. Food Security: Korea-backed machinery has arrived for the Norikori Rice Project to modernise farming and accelerate rice self-sufficiency efforts. Business & Finance: Nickel 28 released its fiscal Q1 2027 results tied to its Ramu nickel-cobalt operations, reporting production and profit highlights. Community & Safety: Authorities restored calm in Kiunga after violent crowd attempts linked to fatal road incidents, while the fire service warned against bush fires during the dry season. Health & Skills: Work continues on the K65 million Koroba Level 4 hospital to expand specialist care, and Mapex Training Institute graduates highlight growing demand for skilled trades.