Papua New Guinea's Prime Minister has announced ministers and bureaucrats have been banned from travelling overseas on official business.

As well as the ban on overseas travel, government departments and statutory bodies will not be allowed to hold conferences or workshops within PNG.

In a statement, the Prime Minister Peter O'Neill says public money has been abused to pay for overseas junkets and conferences that bring little benefit.

The ban is expected to save around $US18 million this year.

More importantly Mr O'Neill says it will ensure ministers and bureaucrats focus on implementing policies and delivering services in what he has dubbed "the year of implementation".

He said 2013 will mark the start of a process to rebuild the country's crumbling health, education and transport infrastructure.