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Marape Sets Bold Economic Targets As PNG Navigates New Security Pact

Papua New Guinea’s prime minister pursues rapid economic growth and ambitious independence goals while balancing major powers over a new Australia security deal.

6 min read

Prime Minister James Marape’s tenure in Papua New Guinea (PNG) has been defined by an ambitious vision: economic growth, national independence, and a careful balancing act on the international stage. Since taking office on May 30, 2019, Marape has made it clear that his central focus is to grow the country’s economy, providing the resources needed to support education, healthcare, infrastructure, and national development for a rapidly expanding population.

“From my first speech as Prime Minister in 2019, I made it clear that the focus of my leadership would be to grow the economy so that we have more resources to sustain our people,” Marape said, as reported by PNG media outlets. This vision is rooted in the ambitions first laid out by PNG’s founding Prime Minister, Sir Michael Somare, who dreamed of a happy, wealthy, wise, and globally competitive nation by 2050. Marape’s twist, however, has been to push for a more aggressive approach, urging every ministry, department, and public servant to make economic growth their top priority.

And the numbers, at least on the surface, tell a story of progress. When Marape took office, PNG’s economy was valued at 79 billion kina (K79 billion). As of September 21, 2025, it has surged to K130 billion—a staggering increase of more than K50 billion in just six years, despite the many challenges the country has faced. “Our growth rate is now consistently above 4%—higher than many other economies. Independent observers such as the IMF, World Bank, and ADB have all forecast PNG’s growth at over 4% this year,” Marape noted.

The Prime Minister has repeatedly emphasized that economic growth is the pathway to true independence for Papua New Guinea. He often recalls the words of the late Sir Michael Somare, who in 2007 told a younger Marape and his colleagues that their generation of educated leaders must work toward economic sovereignty, just as Somare’s generation delivered political independence in 1975. “Somare’s generation gave us political independence,” Marape said. “It is now our generation’s duty to deliver economic independence.”

Looking ahead, the Prime Minister has set out ambitious targets for the coming decades: a K200 billion economy by 2030, K300 billion by 2035, and a massive K500 billion by 2045. “No previous Prime Minister has spoken about growing the economy to this scale,” he said. “But it must be done, because a larger economy is the only way to sustain our fast-growing population.”

How does Marape plan to get there? The strategy is multi-pronged and sector-wide. Growth is expected across forestry, fisheries, agriculture, mining, petroleum, and—crucially—through increased local content, support for small and medium enterprises (SMEs), and broader participation of Papua New Guineans in business. Major resource projects such as Wafi-Golpu, Papua LNG, P’nyang, Pasca, and Frieda are expected to underpin future expansion, alongside a continued emphasis on agriculture and downstream processing. “I am not a trained economist or accountant, but I have the heart of a lion when it comes to fighting for Papua New Guinea’s resources and ensuring our people benefit,” Marape declared. “From the time I first contested elections in 2002, my purpose has been to secure our resources for our people, and as Prime Minister today, I remain true to that mission.”

But as Marape works to steer PNG toward economic independence, the country finds itself navigating a complex geopolitical landscape—one where the interests of major powers like Australia and China increasingly intersect in the Pacific. The latest flashpoint is the so-called Pukpuk Treaty, a new mutual security deal between Australia and PNG. Although not yet formally signed, the treaty was outlined in a joint communiqué released in mid-September 2025. It recognizes that an armed attack on either Australia or Papua New Guinea would be a danger to both countries, echoing the language of collective security agreements seen elsewhere.

The announcement has drawn international attention, especially from China. On September 22, 2025, the Chinese Embassy in Papua New Guinea weighed in with a measured but pointed statement. According to AAP and regional news sources, the Embassy emphasized China’s adherence to the principle of non-interference in other countries’ internal affairs. “We respect PNG’s right to conclude a bilateral treaty with other countries on a voluntary basis,” a spokesperson stated on the Embassy’s social media. However, the statement continued, “such a treaty should not be exclusive in nature, nor should it restrict or prevent a sovereign country from cooperating with a third party for any reason.”

The Embassy’s remarks reflect China’s broader concerns about being sidelined in the Pacific, where it has invested heavily in infrastructure and economic partnerships. The message was clear: China hopes PNG will “continue to uphold independence and self-reliance, properly handle issues bearing on its sovereignty and long-term interests, and work with China to maintain the sound development of China-PNG relations and mutually beneficial cooperation.”

China’s Foreign Affairs Ministry also weighed in. Spokesperson Lin Jian, when asked whether China viewed Australia’s efforts to sign security deals with Pacific nations as a threat to regional peace, responded diplomatically. “We actively help Pacific island countries grow the economy and deliver better lives for their people. That being said, we believe that cooperation between Pacific island countries and any country should put the independence and development of Pacific island countries first, uphold openness and inclusiveness, and not target any third party.”

For his part, Prime Minister Marape has pushed back against speculation that China is seeking to scuttle the deal. Last week, he rebuffed any suggestion that Beijing was opposed to PNG’s new security partnership with Australia, signaling his government’s intent to maintain good relations with both major partners.

This balancing act—pursuing ambitious economic growth while navigating the competing interests of powerful neighbors—is fast becoming the hallmark of Marape’s leadership. On one hand, he is driven by a deep sense of national purpose, echoing the dreams of PNG’s founding fathers and the aspirations of a new generation. On the other, he must steer PNG through the shifting tides of regional politics, ensuring the country’s sovereignty and long-term interests are protected.

It’s a tall order, but Marape seems undaunted. “Together, we must all work to grow this economy bigger, better, and faster—so it can sustain our population and deliver on the dreams of our founding fathers,” he said, summing up the challenge ahead. As PNG stands at this crossroads, the choices its leaders make in the coming years will shape not only the nation’s economic fortunes, but its place in a rapidly changing world.

Sources