PNG's remittance gap could shrink with new visa deals and labor schemes
Papua New Guinea (PNG) receives far less in remittances than its Pacific neighbours, despite being the region’s largest economy. Since the pandemic, its inward payments have stayed at or below $15 million—well short of potential earnings. Now, a new visa scheme with Australia could help change that. For over 15 years, Australia and New Zealand have offered seasonal work programmes to Pacific nations and Timor-Leste. The PALM (Pacific Australia Labour Mobility) and RSE (Recognised Seasonal Employer) schemes allow workers to earn around $3,500 a month, saving roughly $1,500. These programmes have driven a remittance boom in countries like Tonga, Samoa, and Vanuatu.
Yet PNG lags behind. In 2024-25, it had only 2,800 workers in these schemes—far fewer than Vanuatu’s 13,000, Solomon Islands’ 6,300, or Timor-Leste’s 4,900. PNG workers make up less than 10% of PALM participants and under 5% of RSE workers. Even with recent growth, numbers have stalled or dropped in recent months. The Marape government aims to send 8,000 PNG workers abroad by 2025. If achieved, this could unlock an estimated $52 million in annual remittances. PNG is also now the main beneficiary of Australia’s Pacific Engagement Visa, which may further boost earnings sent home.
PNG’s low remittance levels stand out in the Pacific, given its population and economic size. With expanded labour schemes and visa access, the country could see a rise in overseas workers and higher remittances. The coming years will show whether these efforts close the gap with neighbouring nations.
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