A new report by FTI Consulting shows that illegal alcohol now makes up 71% of all alcohol sold in PNG, doing serious damage to our health, our community, and even the country’s economy. K2.59 billion in Lost Revenue In 2024 alone, Papua New Guinea’s Government lost approximately K2.59 billion in revenue due to illegal alcohol trading – money that could have funded healthcare, education, and infrastructure. Spirits Are the Biggest Offender Illicit spirits caused the highest financial damage, contributing the largest share to the total lost government revenue (K1,476.97 million). National GDP Takes a Hit Illegal alcohol is not only a law enforcement issue but an economic one. The country’s GDP has dropped by 0.7% in the short term. If left unaddressed, this could increase to 8% in 10 years. Fewer Jobs, Lower Incomes Illicit alcohol weakens legal businesses (For example: SP Brewery) that employ thousands and pay taxes. The result? Reduced employment, lower household incomes, and decrease in national welfare. It Undermines the Legal Alcohol Industry Legal alcohol producers play an important role in PNG’s economy by paying excise taxes, providing local jobs, and supporting community initiatives. However, illegal competition threatens their ability to operate and contribute over the long term.