A new six-year partnership between the World Bank Group and Papua New Guinea aims to support reforms and investments that will generate employment, improve public services, and strengthen long-term resilience. Approved by the World Bank Group’s Board of Executive Directors on 17 February 2026, the new Country Partnership Framework (CPF) will guide support through 2031, aligning with the government’s national development priorities.
Despite its abundant natural resources, Papua New Guinea continues to face significant challenges in translating this wealth into improved living standards for its population. With the majority of citizens residing in remote areas and facing limited access to infrastructure and essential services, broadening economic opportunities beyond the extractive sector and reinforcing institutional capacity remain critical to sustainable development.
The CPF places job creation at the center of its strategy and focuses on four key priorities: strengthening skills and human capital, improving connectivity to infrastructure, enhancing economic governance, and promoting private sector development and economic diversification. Agriculture has been identified as a particularly promising sector with strong job creation potential, especially if productivity increases and farmers gain better access to markets.
The partnership will invest in education, health, and nutrition to address development gaps, particularly in a country where the Human Capital Index stands at 0.42. It also aims to expand access to electricity, roads, and other basic infrastructure to enable rural communities to participate more actively in the economy. In addition, the framework will support reforms to improve transparency and accountability in the management of resource revenues, ensuring that public funds are more effectively directed toward social services and infrastructure development.
With an estimated US$1.2 billion financing envelope over six years, the World Bank Group will work to mobilize private capital, strengthen governance systems, and improve resource revenue management so that economic growth translates into broader benefits for the people of Papua New Guinea.
