Restrictions on foreign investment

Present Papua New Guinea policy is to welcome both foreign investment and expatriate skills necessary to make the investment effective, as long as the foreign investor abide by the basic policies of the government. Government policy is to encourage foreign investment on a selective basis in those sectors where it is believed it will be of most benefit, with the government’s development policy, for the country.

It is primarily small-scale operations that are reserved for PNG citizens, and includes the following:
· Small-scale growing of tree crops
· Small-scale growing of crops and market gardening
· Poultry farms
· Small-scale sawmilling
· Fishing on a commercial basis within three miles of the shoreline and on inland waters
· Building maintenance for domestic dwellings
· Making of wooden furniture with a capital of less than k250,000
· Process of coffee from the stage of green beans
· All forms of real estate management
· Equipment rental
· Provision of accommodation with less than ten rooms
· Transport of freight and passengers by land (excluding transport of own goods and staff)
· Coastal and inland water transportation
Wholesale and retail trade in food, beverages, clothing and household or consumer goods from outlets of up to 500 square meters.