The government of Papua New Guinea is committing to pay ten percent of the earnings from two major state companies to the churches of PNG.
Prime Minister James Marape has called the move transformative, "demonstrating the government's commitment to strengthening its partnership with the churches."
The ten percent of earnings from Kumul Petroleum Holdings Ltd and Kumul Minerals Holdings Ltd is to support church activities in healthcare, education and distance learning.
It will also go to towards youth development and to help the growing number of school leavers find training and employment.
The prime minister acknowledged that the churches have made an invaluable contribution to nation-building.
"We understand that we cannot achieve our national goals alone. The work of the churches is instrumental in guiding our nation on the right path. We encourage you "to continue your service to Papua New Guinea and humanity," he said.
There is also government funding of 6.5 million kina or US$1.7 million dollars to build headquarters for the PNG Council of Churches, to serve as a central hub for church related activities across the country.
And Marape wants the churches to broaden their outreach, particularly in the areas of education, healthcare, youth development, small to medium enterprises programmes, the distribution of coffee and cocoa seedlings, and the promotion of agriculture.
One of Kumul Petroleum Holdings Ltd main assets is a 16.57 percent interest in the huge ExxonMobil liquified natural gas project.
Kumul Minerals holds 67 percent of the shares of the giant Ok Tedi Copper Mine and 36 percent of the Porgera Gold Mine.