The president of the Papua New Guinea's Public Employee Association, Napoleon Liosi, says an Australian call for tens of thousands of government jobs to be slashed is unrealistic.
As part of an aid package to be announced next week, Australia is expected to call for the 75-thousand strong public service to be cut by fifty thousand.
But Mr Liosi says the government doesn't have money to pay off so many.
"It will be the most unrealistically difficult move that they will want to undertake. The government has no money to pay out public servants and reduction means redundancies and retrenchment and we are aware that unless adequate funding is available for a golden handshake to the many national public servants, there may be resistance."
Mr Liosi says the government is to blame for not adequately funding the public service to do its job properly.