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Country risk report · Oceania

Papua New Guinea

Political RiskHigh
Operational RiskHigh
Security RiskHigh

Summary

Papua New Guinea (PNG) is a resource-rich and culturally diverse nation located in the southwestern Pacific Ocean. It shares the island of New Guinea with Indonesia and consists of over 600 islands, making it one of the most geographically complex countries in the world. PNG is renowned for its extraordinary cultural diversity, with over 800 distinct languages spoken among its population of approximately 9.6 million people (2024 estimate). The country gained independence from Australia in 1975 and continues to develop its political and economic structures. Port Moresby serves as the capital and economic hub, although Lae, the second-largest city, is an important commercial center due to its industrial base and proximity to the Highlands region. PNG's economy is heavily dependent on its vast natural resources, particularly mining, oil and gas, agriculture, and fisheries. However, economic instability, underdeveloped infrastructure, and security challenges have hindered sustainable development and foreign investment. The country’s terrain is rugged and remote, making transportation and infrastructure development difficult. Additionally, PNG is prone to natural disasters such as earthquakes, volcanic eruptions, and tsunamis, which contribute to economic and social vulnerability.
Capital
Port Moresby
Population
9.6 million (2024 estimate)
Official Languages
English, Tok Pisin, Hiri Motu
Currency
Papua New Guinean Kina (PGK)
Key Industries
Mining (gold, copper, oil, natural gas), agriculture (coffee, cocoa, palm oil), fisheries, and forestry
GDP
$28 billion (2023 estimate)
GDP Growth
3.5% (2023 estimate)

Table of contents

  1. Papua New Guinea | Overview
  2. Political Risk Summary
  3. Political Stability
  4. Regulatory Risk
  5. Contract Enforcement
  6. Integrity and Corruption
  7. Sovereign Risk
  8. Operational Risk Summary
  9. Institutional Risk
  10. Infrastructure Risk
  11. Labour Risk
  12. Security Risk Summary
  13. Crime Risk
  14. Terrorism Risk
  15. War Risk
  16. Civil Unrest
  17. Kidnap Risk

Risk levels in the report

From the report’s summary page. The full report explains each level and lists the key concerns behind it.

  • Very Low
  • Low
  • Medium
  • High
  • Very High
Risk levels by category and subcategory
CategoryRisk level
Political RiskHigh
Political StabilityHigh
Regulatory RiskMedium
Contract EnforcementHigh
Integrity and CorruptionHigh
Sovereign RiskMedium
Operational RiskHigh
Institutional RiskHigh
Infrastructure RiskHigh
Labour RiskMedium
Security RiskHigh
CrimeHigh
TerrorismLow
War RiskLow
Civil UnrestMedium
Kidnap RiskMedium

“I use reports from Risk Information Systems to support my work in compliance and risk assessment. The reports provide a clear overview of country risks and a useful starting point for identifying issues that require closer consideration. I particularly appreciate the concise and accessible format. For me, the reports are a valuable supplement to my own research and professional judgement.”

Anton Arnesen — Group Compliance Officer, Multiconsult Group