Papua New Guinea's Trade Union of Congress has welcomed the government's move.
The Congress' General Secretary, John Paska, says it indicates its sympathy towards the concerns of Papua New Guineans who strongly opposed privatisation.
He says it is hoped that talks between the government and the union can be held to discuss alternatives to privatisation.
"There cannot be one anecdote alone in terms of how we deal with economic problems currently facing Papua New Guinea because it's so enormous right now it will require a collective effort. The Mekere government apparently laid all its cards on the privatization as the only avenue in terms of bailing the nation we say it's not the only avenue"
In Sydney, the World Bank's PNG country director, Klaus Rohland, says it is not concerned about the move, describing it as a natural and healthy reaction of a new government, to take stock of what is going on.