Papua New Guinea’s political situation continued to be shaped by weak state authority and the aftermath of the poorly organized 2022 election, which was marked by violence, procedural irregularities and many voters being excluded. Disputed results continued to spark conflict in parts of the Highlands Region. High crime levels and widespread insecurity further undermined the state’s ability to maintain order.
Economic conditions were influenced by dependence on extractive industries, shortages of foreign currency and low investor confidence. Inflation hit urban households, while higher prices for gold and agricultural products supported rural incomes. Several major resource projects faced delays, and foreign exchange shortages constrained economic activity. Financial reforms under an IMF-supported program helped improve debt management.
Governance reforms focused on transparency, anti-corruption efforts and stronger oversight of public resources, including the creation of a new independent anti-corruption body. However, the government’s administrative capacity remained weak, and public frustration grew amid riots, youth discontent and uneven implementation of reforms.