The PNG-Australia NRL deal for 2028 has raised many questions. According to Australian reports, the funding for this ‘diplomatic’ deal amounts to $600 million.

In a recent media release from the Prime Minister’s Office, it was stated that the deal is expected to drive economic development in PNG from Australia in the years following 2028.

A report by Deloitte, outlining the Australian Government’s forecast, highlighted several potential benefits for PNG resulting from the NRL deal.

These include economic diversification, with an anticipated AUD 517 million (K1.2 billion) boost to the recreational services sector—a 158% increase in the value added to PNG’s economy from Australia.

Furthermore, AUD 160 million (K390 million) is projected to be added to the professional services sector by 2049, alongside a AUD 52 million (K126 million) increase in government services.

In total, a staggering K1.7 billion will be injected into PNG from Australia as part of the NRL deal.

Questions have arisen about how an NRL deal could lead to greater government investment. The report indicates that this initiative could create 2,500 to 2,800 new full-time positions and around 5,000 internships in the informal sector.

In total, approximately 5,300 full-time jobs, and when including the informal sector, a total of 10,300 jobs are expected to be generated.

Other potential benefits include precinct activation, fostering civic pride, enhancing the national brand, improving health and well-being, challenging gender norms, and strengthening bilateral ties between the two nations.

Upon his return to PNG, Prime Minister Marape commented: “This is a national unification strategy for Papua New Guinea and Australia. At the heart of our foreign relations—through government-to-government collaboration, complemented by business-to-business partnerships—is our people-to-people connection. PNG’s entry into the NRL solidifies these relationships, further uniting our peoples.”