Informal Economy Sectoral Committee



To encourage the development and elevation of informal economy activities in the country so that employment and income earning opportunities are created for the greater majority allowing for poverty reduction and potentially improving in the living standards of participants in the informal economy sector.


Strengthen the mechanisms that provide legal assistance to informal economy participants. Review and reform legislation to create a conducive environment for informal economic activities. Strengthen existing mechanisms to allow better representation of Informal Economy participants in the decision making processes.

Devise strategic campaigns to raise awareness about the informal economy and related activities, support and strengthen existing training and capacity building mechanisms for administering authorities and informal economic participants.

Informal Economy

Informal ‘Economy’, NOT informal ‘sector’ because informal economic activities are part of Papua New Guinea's total economic system. It is more accurate to speak of the ‘informal economy’, and not the ‘informal sector’. The informal economy should be recognized as an important partner in PNG's economic growth and development.

The informal economy (IE) is a set of legal business activities that are socially desirable and an avenue for long term economic growth. It is comprised of small business activities that do not use high levels of technology or a lot of money to start. It includes making, distributing and selling goods or providing services at low levels of productivity. Mobile traders are considered members of the informal economy.

Informal Economy does not include those who provide professional services or act as an agent of business and is liable to pay tax. The Informal Economy creates jobs for over 80% of the total population and generates incomes for families, reduces poverty, reduces crime, drives our economy and contributes to long term development of Papua New Guinea