PNG missing out on the Pacific remittances boom

John Mayers
4 hours ago
2 min read

The article "PNG missing out on the Pacific remittances boom," published on May 6, 2026, by the Devpolicy Blog, details why Papua New Guinea (PNG) is lagging behind its Pacific neighbors in benefiting from regional labor mobility schemes.

Here is a summary of the key findings:

1. The Remittance Gap

While countries like Tonga, Samoa, Vanuatu, and Timor-Leste are experiencing a "remittance boom" due to labor schemes in Australia (PALM) and New Zealand (RSE), PNG remains a significant outlier.

GDP Impact: In 2023, remittances accounted for nearly 50% of Tonga's GDP and over 10% for several others. In PNG, they represented only 0.2% of GDP.
Dollar Value: Even when looking at raw dollar amounts rather than percentages, PNG's inflows have stagnated at or below $15 million annually, while neighbors like Vanuatu and Timor-Leste have seen sharp increases.

2. Participation Disparities

The disparity is directly linked to the number of citizens working abroad. In 2024–25, the figures were:

Vanuatu: 13,000 workers
Solomon Islands: 5,300 workers
Timor-Leste: 4,900 workers
PNG: Only 2,800 workers

PNG workers currently make up less than 10% of the PALM workforce and less than 5% of the RSE workforce.

3. Missing Data vs. Missing Money

The authors calculate that based on the 2,800 workers abroad, PNG should be seeing potential remittances of roughly $52 million per year. The fact that only $15 million is recorded suggests two possibilities:

Informal Channels: Workers may be bringing cash back physically rather than using the banking system.
Poor Recording: The Bank of PNG and commercial banks may not be accurately tracking these specific inflows.

4. Historical and Future Outlook

Late Start: PNG was a "latecomer" to these schemes; the previous O’Neill government largely ignored these opportunities. While the Marape government set a target of 8,000 workers by 2025, growth has stalled recently.
Static Schemes: Since both PALM and RSE are currently not growing in total numbers, it is difficult for PNG to increase its market share.
The PEV Hope: The "silver lining" is the new Pacific Engagement Visa (PEV), a permanent residency pathway to Australia. PNG has the largest quota (1,350 per year), which may finally provide the boost needed to join the regional remittance boom.