Reserved Activities List Review
Report on the review of the Reserved Activities List
What are reserved activities?
Reserved activities are identified economic activities that foreign enterprises cannot be granted permission to engage in. If an activity is reserved, the Registrar of Foreign Investment must refuse an application for a Foreign Enterprise Certificate (FEC).
Reserved activities are specified in the Reserved Activities List (RAL) in the Investment Promotion Regulations.
The current list, which the report recommends altering, is available here .
Activities that may be reserved in other contexts
The RAL applies to the provision of a FEC only.
Occasionally, other regulators refer to certain activities or licences being reserved for citizens. This means that the regulator, not IPA, will refuse an application to participate in an activity that is overseen by that regulator.
Further, some occupations are described as “reserved”. This means that a work permit will not be issued for a foreign citizen to engage in employment in that activity. This is different to investment authorisation under a FEC.
Reforms to how the RAL is reviewed
In January 2023, the Government made important reforms to how the RAL is reviewed. Important improvements include:
Regular reviews
the RAL must now be reviewed at least every 3 years.
More consultation
the RAL review process must seek broad-ranging feedback and take at least 6 months to conclude to give everyone the opportunity to respond.
Clearer guidance
the RAL review must now consider key statutory eligibility criteria and principles.
Transparency
the findings of the RAL review must be published.
Report of the IPA Board
In accordance with its obligations under section 27C(5) of the Investment Promotion Act 1992, the IPA Board is publishing its report on the RAL review. This is the first review done in line with the reformed process.
The report includes the detailed public consultation paper that formed the basis of the review. This public consultation paper was made available on 6 June 2025, and consultation closed on 21 November 2025.
The full report is available here .
Overview of recommendations
The IPA Board is recommending a modernised, streamlined RAL that better aligns with identified sectoral policy and the statutory review criteria. This RAL provides better guidance for foreign investors about what economic activities are off limits.
Key improvements in the proposed RAL:
Better alignment with sectoral controls
the extent of reservations made by sectoral regulators is better captured in this RAL to promote better consistency. In particular, new reservations in the fisheries sector are introduced in line with National Fishery Authority requirements.
Focus on an enforceable list
key changes to activity descriptions and the activities included have been made to make it easier for IPA and other regulators to monitor and enforce the RAL.
Response to community sentiment
the revised RAL recommends comprehensive reservation of trading in PNG cultural expression products. This ensures that citizens, rather than foreign enterprises, are the primary economic beneficiaries of PNG cultural expression. Additionally, reservation of retail activities at markets and stalls has been made simpler and more comprehensive.
Compliance with statutory criteria
activities were removed where they were no longer eligible for reservation under the reformed Investment Promotion Act or were no longer consistent with Government policy.
The proposed list reserves 11 activities across forestry, fisheries, mining, retail, and PNG cultural expression products. The public is encouraged to read the full activity descriptions because:
some activities specify additional sub-activities, for example, reservation of PNG cultural expression products covers nine product types including bilums, carvings, textiles, pottery and jewellery; and
some activities map directly to the scope of sectoral controls, for example, the reservation of alluvial gold mining applies to alluvial mining on customary land without a lease under the Mining Act 1992. This mirrors the existing controls on the exclusion of foreign participation in that activity.
The full proposed list is on page X of the report.
Next steps
The report of the IPA Board has been provided to the Minister of Commerce and Industry.
Upon approval of the revised RAL, IPA will bring forward amended regulations to be made by the Governor General in line with standard approval procedures.
Reserved Activities List Review Public Consultation Paper
Purpose of the review
The IPA reviews the RAL periodically to ensure that it is appropriate to the Papua New Guinea’s economic conditions and development priorities. In 2023, the Investment Promotion Act 1992 (IP Act) was amended to provide a better process for reviewing the list. Reviews of the RAL must be undertaken at least every 3 years. This is the first review undertaken under the new requirements.
The new process emphasises transparency, accountability, and a closer relationship between the RAL and Government sectoral regulatory and policy settings. The IP Act provides that business activities that meet defined criteria may not be considered for the RAL and specifies additional review principles for eligible activities.
Overview of reserved activities
Foreign enterprises carrying on business in Papua New Guinea require a Foreign Enterprise Certificate (FEC) issued by the IPA. Obtaining a FEC does not exempt a foreign enterprise from compliance with other requirements such as obtaining a trading licence, sectoral licences (where applicable), and other registrations.
The IP Act provides for defined economic activities to be “reserved” for citizens. An activity being reserved means that the Registrar of Foreign Investment must decline to issue a FEC to a foreign enterprise that applies to carry on business in an activity reserved for citizen enterprises. Inclusion in the RAL means that there can be no non-citizen ownership of a business undertaking a reserved activity, including through local-foreign joint ventures.
Reserving activities through the RAL is one tool that the Government has to promote and manage economic growth in the best interests of PNG. Other tools include investment promotion and facilitation, direct financial and development assistance being provided to businesses in identified sectors, sectoral regulation, and immigration controls. In many cases, a combination of policy tools will be the most effective way to achieve a stated policy outcome.
Please note that the RAL is different to occupations reserved for citizens under the Employment of Non-Citizens Act 2007 (often referred to as the “Reserved Occupations List”). This review only considers the RAL.
