Papua New Guinea

Papua New Guinea (PNG) lies on the eastern half of the island of New Guinea, located between the Coral Sea and the South Pacific Ocean among the islands of Oceania. In 1885, it was divided between Germany (north) and the United Kingdom (south). The area controlled by the United Kingdom was transferred to Australia in 1902, which occupied the northern portion during World War I and continued to administer the combined areas until Papua New Guinea gained its independence in 1975. Papua New Guinea's capital city is Port Moresby, and its official languages are English, Tok Pisin, and Hiri Motu. The currency in Papua New Guinea is the Papua New Guinea kina (PGK).

Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for 85% of the population. Mineral deposits, including copper, gold, and oil, account for nearly two-thirds of export earnings. A consortium led by a major American oil company commenced production of the country's estimated 227 billion cubic metres of natural gas reserves into liquefied natural gas (LNG) in April 2014 with the first shipment of LNG being delivered to Japan in May 2014, ahead of schedule. The project continues to operate and is a significant contributor to government revenues annually. 

There are also a number of major resource projects in the pipeline, including the Wafi Golpu project, Frieda River Copper-Gold project, ‘Papua LNG’, Papua New Guinea’s second LNG project, and a potential expansion of the PNG LNG project. Of these projects, Papua LNG has signed gas agreements with the state and is reported to be targeting completion of front-end engineering and design (FEED) by the end of 2023. 

The government made a successful entry into global debt markets with the launch of the country's first sovereign bond completed in 2018. More recently, the government has relied more heavily on more concessional financing from multi-lateral and support from aid partners. However, numerous challenges still face the government, including providing physical security for foreign investors, regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency in state institutions, responding to the need to improve levels of public health and education, and balancing relations with Australia, its former colonial ruler, and other regional powers.

PwC Papua New Guinea offers assurance services, advisory services, and tax services and is the largest professional services firm in Papua New Guinea.

The firm provides assurance services to clients on the financial performance and operations of their businesses, helping them to manage the totality of their business risks and improve financial performance.

The advisory practice provides comprehensive financial, economic, and strategic advice to companies with complex business problems, disputes, and opportunities. Traditional services include corporate advisory, valuations, performance improvement, and transaction services (e.g. due diligence).

The core service offerings of the firm's tax practice in Papua New Guinea include formulating effective strategies for optimising taxation solutions, managing tax risks, and effectively maintaining compliance. Our tax practitioners, who form the largest taxation practice in Papua New Guinea, are highly experienced, having helped to fashion much of the tax law, and can assist with all manner of tax issues.