Investing in Papua New Guinea

Papua New Guinea has a formal but relatively narrow capital market. PNGX Markets is the recognised national exchange and currently lists 12 companies from banking and finance, aviation, industrial activity, investment, agriculture, mining and exploration, and oil and gas. Investors can also consider PNGX-listed corporate bonds, government securities, managed funds and unit trusts, while direct investment in companies or projects follows a separate business and investment-law pathway. Treasury Bills are discount instruments that currently mature after 182 or 364 days and repay their face value at maturity. Inscribed Stock pays a coupon and currently includes terms of 3, 6, 11, 13 and 17 years. Treasury Bills are generally the more accessible government-security option. Treasury Bill auctions normally take place on Wednesdays from 9:00 to 11:00, while Inscribed Stock auctions normally take place every third Tuesday from 9:00 to 12:00. Inscribed Stock access is currently aimed at registered bidders and financial or non-financial institutions, although the Treasury has promoted government securities for retail investors in 2026; eligibility should be confirmed directly with the Bank of Papua New Guinea before payment. Managed funds and unit trusts can spread money across several assets. Locally approved structures include property, hedge, investment, resources, mortgage, cash-management and Pacific balanced funds. The Securities Commission of Papua New Guinea, abbreviated as SCPNG, regulates securities markets, licensing, market supervision and investor protection. Its registration status, the licensed trustee, trust deed, disclosure documents and audited reports should be checked before money is committed. An unregistered unit trust or managed investment scheme does not provide an equivalent regulatory framework. Retail investors cannot place direct orders on PNGX. They use a licensed stockbroker and the PNGX Electronic Trading System, commonly called PETS. The identified retail stockbrokers are JMP Securities Limited and Kina Securities Limited. A broker normally requires a client agreement, contact and bank details, at least two primary identity documents including at least one photo ID, an order instruction and sufficient cleared funds in the named broker account. Share ownership is recorded by the relevant share registry, while PNGX Markets operates the central depository. The Department of Treasury and the Bank of Papua New Guinea, or BPNG, administer government-securities processes. BPNG uses investor identification and bid forms for relevant transactions. Broker fees apply to share trades, and auction and settlement dates follow the applicable notice. A secondary-market sale of government securities may be possible, but an issuer buyback before maturity is not guaranteed. Superannuation funds such as Nasfund and Nambawan Super are institutional retirement investments rather than freely available retail brokerage accounts. A portfolio concentrated in the 12 PNGX companies can carry substantial issuer, sector, commodity and liquidity exposure. Banking and resource-related holdings may respond to domestic conditions, commodity prices and political or regulatory developments at the same time. Combining local shares with government securities, regulated funds and, where legally and practically available, international investments can reduce concentration, but it cannot remove market, currency, inflation, interest-rate, default or liquidity risk. Nasfund's reported 2024 portfolio included K8.32 billion and substantial defensive exposure to government-inscribed stock, Treasury Bills, exchange-traded funds and BSP exposure; this is historical institutional information and does not represent a current retail return or recommendation. The Investment Promotion Authority, or IPA, supports and facilitates domestic and foreign investment. Foreign Investor Certification can apply to foreign enterprises, companies with more than 50 percent non-PNG ownership and non-PNG individual investors, with applications requiring details such as the representative, activity, location, investment, employment, identity and financial information. The available evidence does not establish that a purely passive purchase of listed securities automatically requires IPA certification, so that question should be checked with the IPA or a qualified adviser for the actual ownership and transaction structure. The Internal Revenue Commission, or IRC, administers taxation. The Income Tax Act 2025 contains capital gains tax provisions, and dividend and interest withholding tax depends on the current schedule and the instrument. Cross-border transactions can also involve BPNG foreign-exchange rules, an authorised dealer, tax clearance for some securities sales or purchases, registration transfers and restrictions affecting dividends or other transfers out of Papua New Guinea. Confirm the current tax and foreign-exchange treatment before transferring funds or selling an investment. Digital assets do not have a confirmed regulated retail investment pathway in the reviewed primary sources. SCPNG and BPNG warn about unlicensed foreign-exchange and cryptocurrency platforms. Other risks include fraud, Ponzi or pyramid schemes, phishing, cyber incidents, weak custody controls, complex products and incomplete disclosure. A licensed intermediary, verifiable registration, written fee schedule, clear exit option and independently checked payment instructions provide a safer basis for evaluating an investment, but no regulated product guarantees a return.