The current restructure has focused on the removal of men of a quality now judged to have been unsuitable for the Bougainville campaign and since the end of operations there the army has, with Australian assistance, attempted to reform all aspects of its training and administration.In the early 21st century terrorism has become increasingly a concern for Papua New Guinea policy-makers and one of the major objectives of the army for 2008 is to prepare itself to deter any attack on its sovereignty but more particularly to terrorist attacks. The air force and navy also suffer major equipment and funding shortfalls-to the point of sometimes almost being grounded-and are both too small and poorly equipped to take part in operations overseas. Ultimately the reduction-in-size target was reached in 2007.PNGDF capability is considered modest, with the army facing significant problems including a chronic budget crisis, a lack of experience in conventional operations, limited ability to be deployed independently overseas as well as internal tensions. Chief of Staff Captain Aloysius Tom Ur told troops in January 2004 that the 2004 strength of 3,000 would be reduced by one-third, and that during 2004, the force's personnel branch would merge with the support branch into a new organisation. In early 2004 the government reaffirmed its commitment to implement cuts within the armed forces, with a definitive restructuring expected to take place. However, in 2002 it was announced that the PNGDF would be reduced from 4,000 to around 2,100 personnel. The government capitulated after 10 days to the mutineers' demands, agreeing not to cut the army's strength.
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