Papua New Guinea Cash Crisis: Nation on the Brink? PNG faces a cash flow crisis affecting businesses and citizens. Deputy opposition leader and Member for Chuave District Hon. James Nomane warns of financial collapse amid leadership concerns.

Papua New Guinea’s Cash Flow Crisis Deepens: Is the Nation on the Edge?

Port Moresby, June 3, 2025  Papua New Guinea is facing a serious cash flow crisis that is now affecting businesses, government services, and the daily lives of ordinary people.

Experts and political leaders are warning that the country may be heading towards a financial collapse if urgent action is not taken.

Businesses and Government Struggling

Many businesses across PNG are struggling to pay their workers and suppliers. Government departments are also facing problems. There are delays in paying contractors, teachers, nurses, and other public servants. Some hospitals and schools are running out of basic supplies because the government cannot release funds on time.

This has caused widespread frustration among citizens who are seeing basic services like health, education, and infrastructure slow down or stop altogether.

Papua New Guinea 2025 National Budget Under Threat

The 2025 budget, which is supposed to support government services and development plans, is now in danger. Without enough cash available, the government may not be able to fund its programs or meet its spending promises. Many people are asking whether the government can deliver the budget at all.

Criticism of Prime Minister James Marape

Opposition MP James Nomane has blamed Prime Minister James Marape for the worsening crisis. He said the Marape government has shown poor money management and is practicing crony capitalism, where government contracts and benefits go to friends and political allies instead of the people.

Mr. Nomane pointed out that in the last six years, the Marape government has borrowed nearly 39.9 billion kina, a record amount in PNG’s history. But many citizens say they have not seen the results of this borrowing in terms of better roads, hospitals, or job opportunities.

Weak Investment in Key Sectors

Critics also say that the government has not invested enough in important areas like agriculture and tourism, which could help the economy grow and create jobs. Instead of supporting farmers and promoting PNG as a travel destination, resources have gone into short-term political projects.

Rise in Crime and Corruption in Papua New Guinea

The economic crisis is being made worse by high levels of crime and corruption. Many people say they no longer feel safe in their own communities. Corruption in public offices is still a big problem, with government funds disappearing or being misused.

At the same time, Papua New Guinea is struggling to build strong partnerships with other countries. Some international partners are losing confidence in PNG’s leadership and are pulling back their support.

Confusion Over Government Policy

Another problem is confusion over government decisions. Businesses and investors say the government often changes its policies or sends mixed messages. This makes it hard for companies to plan or invest in the country. As a result, confidence in the economy is dropping fast.

Citizens Call for Leadership Change

As the crisis gets worse, more citizens are calling for Prime Minister Marape to step down. Many say new leadership is needed to fix the economy, reduce debt, fight corruption, and restore trust in government.

Some are demanding early elections or a vote of no confidence in Parliament to bring in a new prime minister with a clear plan for recovery.

A Nation at a Crossroads

Papua New Guinea is now at a critical point. The cash flow crisis is more than just a money problem. It reflects deeper issues in leadership and governance. If no action is taken, the country could face serious social and economic troubles in the months ahead.

But many believe there is still hope. With better planning, honest leadership, and smart investment in agriculture, tourism, and job creation, PNG can recover.

For now, the big question remains: Will those in power listen and act before it’s too late?

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