Agriculture provides a subsistence livelihood for the bulk of the population.
Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995, Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program. The loans will be provided only if Port Moresby implements significant reforms to liberalize trade and investment policies, reduce the public sector, and promote sustainable development of the forestry sector. At the start of 1996, Port Moresby is looking primarily to the exploitation of mineral and petroleum resources to drive economic development but new prospecting in Papua New Guinea has slumped as other mineral-rich countries have stepped up their competition for international investment. Output from current projects will probably begin to taper off in 1996, but no new large ventures are being developed to succeed them.