TREASURER FORECASTS NATIONAL DEBT TO PEAK IN 2026

By Nigel MADO

According to Treasurer Ian Ling-Stuckey and the Government’s 13-year budget repair plan, Papua New Guinea’s national debt is projected to peak in 2026, with a surplus budget expected from 2027 onwards.

This follows questions from Opposition Leader Douglas Tomuriesa regarding the Government’s borrowing plans, after two ministers expressed conflicting views on whether to take on more loans for the national budget.

Ling-Stuckey did not confirm whether the Government would continue to seek concessional loans. However, he stated that the Government aims to replace expensive commercial loans with concessional financing at interest rates of 2-3%. He noted that these loans typically carry interest rates of under 4-5%.

The Treasurer emphasized that the Government has a clear plan to continue repaying its debt, aiming to reduce it by approximately 1% per year, equivalent to K1 billion under the 13-year repayment strategy.