 |
|
 |
 |
 |
 |
|
|
Info
Regions
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Guide > Australia and South Pacific > Papua New Guinea | |
|
Business Profile Economy Although Papua New Guinea has been described as ‘a mountain of gold floating on a sea of oil’, it is a poor country and most of the population is engaged in subsistence agriculture. The most important commercial cash crops are copra, coffee, cocoa, timber, palm oil, rubber, tea, sugar and peanuts. However, the gradual discovery of exploitable mineral deposits has transformed the country. Papua New Guinea boasts the largest known supply of low-grade copper, the entire production of which is exported to Western Europe and Japan under long-term contract, and accounts for three-quarters of the country’s export earnings. Production, though, has been upset by the Bougainville insurgency. Other identified mineral deposits include gold and chromite. Some oil and natural gas has also been located. Light industry has grown steadily, mostly to meet consumer demands: the construction industry, printing, brewing, bottling and packaging are among these. Papua New Guinea’s attempts to develop a tourist industry have been undermined by a lack of basic infrastructure and, more importantly, political stability. The country is always subject to the vagaries of the climate and natural phenomena – in recent years, it has suffered drought, flooding and an earthquake. On top of that, the Asian economic crisis of the previous autumn damaged the PNG economy. During the last five years, the Government has managed to stabilise the economy, cutting the budget deficit, reducing inflation to around 10 per cent and stabilising the currency. However, growth has been stagnant at best and Papua New Guinea is still burdened by an overseas debt of $2.5 billion. Papua New Guinea belongs to the Asian Development Bank and the South Pacific Commission. Its largest trading partners are Australia, with 50 per cent of the market, followed by Japan, Singapore and the USA. Business Business affairs tend to be conducted in a very informal fashion. A conventional suit will not be required – shirt and tie or safari suit are sufficient. Office hours: Mon-Fri 0800-1630. Government office hours: Mon-Fri 0800-1600. Commercial Information The following organisations can offer advice: Papua New Guinea Chamber of Commerce and Industry (tel: 321 3057; fax: 321 0566; e-mail: pngcci@global.net.pg; website: www.pngcci.org.pg); or Investment Promotion Authority, Level 3, Credit Corporation House, Cuthbertson St, Port Moresby (tel: 321 7311; fax: 321 2819; e-mail: iepd@ipa.gov.pg; website: www.ipa.gov.pg). Conferences/Conventions Some hotels provide facilities. |