In his speech, Marape highlighted the need for a new bank to be established to cater to the country's unbanked population and to introduce new financial products into the country's banking system.

"PNG looks forward to the input and entry of the Chinese bank into the PNG market,” Marape said.

“This is an important contribution as PNG’s volume of trade with China grows bigger."

Marape said the event was a momentous occasion as it demonstrated confidence in the country's economy.

The establishment of the Bank of China's representative office also showed confidence in the stability of the government and the independence of the three arms of the State.

"Let me assure you that your entry into the country is right on the verge of the next phase of an important economic boom," Marape said.

"This is a boom that will catapult us into becoming a middle income-earning nation and every one of us needs to work intensely to make sure that we reach this important milestone.

"In 1975, our economy was less than K5 billion, today it is K113 billion and within the next seven years we want to be a K200 billion economy to sustain a population now past 10 million people," Marape said.

He added that over half of the country's population remains unbanked, so there was need for a new bank with new financial products.

"About 60-70% of our people are unbanked and most of our SMEs are yet to fully migrate into the formal economy,” Marape said.

“So imagine if 10 million-plus people in the next 10 or so years are all participating actively in the formal economy," he said.

"It is a significant boost to have such a high-profile and highly-respected global banking group enter the PNG market, not only to serve PNG but also the South Pacific Region with Port Moresby as its regional headquarters.

"My government is keen to see more new banks enter PNG to increase competition, help reduce interest rates and banking fees and to expand services to unreached areas using various e-banking platforms.

“We also need to reduce the long queues in all our banks today," Marape said.

The prime minister said the entry of Bank of China would enhance the government’s plans to strengthen and deepen trade and investment between China and PNG.

“Our government will set up a trade mission in Shanghai to secure more foreign direct investment from China into PNG and secure more Chinese markets for LNG and agriculture, fisheries, marine and forestry products.”

The Bank of China's chairman, Ge, said the bank will continue to strengthen the construction of a collaborative service network in the South Pacific region.

The PNG representatives are proud to be amongst the 300,000 employees of the Bank of China, and the launch in PNG “marks a century of glory and globalisation”.

The Bank of China operates in 60 countries and is the world’s fourth biggest banking group.

The bank's presence in PNG may extend into retail banking later, but for now their representative office is located in Port Moresby.

The banks plans to expand to other provinces to further increase its reach and influence in the market.