The Chief of the National Intelligence Organisation in Papua New Guinea Gari Baki says his organisation will struggle to provide services for the many international events being staged in the country.
Mr Baki says he is not happy that its been allocated around 4 million US dollars less than he requested from government.
He says the shortfall will affect operations.
Gary Baki says this is particularly concerning because PNG is about to host the Pacific Games, the 2016 Pacific Forum Leaders meeting, the 2017 national elections and the Asia Pacific Economic Cooperation Leaders Summit in 2018.
"Papua New Guinea's at the doorstep of Australia. Australia now is the subject of terrorism. There's so many activities happening in Australia and for one to think that nothing of that kind of nature could happen in Papua New Guinea, it's an understatement. We need to really prepare ourselves for anything, much bigger than what is expected."
Prime Minister Peter O'Neil says PNG does not have terrorism issues.