IMF Reaches Staff-Level Deal With Papua New Guinea, Potentially Unlocking $189 Million

The International Monetary Fund said Tuesday it reached a staff-level agreement with Papua New Guinea on reviews of its funding facilities, potentially unlocking up to $189 million once approved by the fund's executive board. If the board approves, the country would receive about $82 million immediately and up to about $107 million in climate financing, bringing total IMF disbursements to roughly $1.19 billion. The IMF expects real GDP growth to slow to 3.1% in 2026 from 6.2% in 2025, as LNG output levels off, El Nino hurts farming and mining, and Middle East war pushes up import costs. Headline inflation is projected to rise to 4.8%. The government met all but one quantitative performance criterion for end-June 2026 but missed its first-half fiscal deficit target, passing a supplementary budget in September to keep the 2026 deficit at 1.6 billion kina ($345.28 million).