It was founded in June 1967 by (in particular) Michael Somare, Albert Maori Kiki and Barry Holloway; Somare later served as Prime Minister of Papua New Guinea as the leader of the Pangu Party from 1972 to 1980 and from 1982 to 1985. In 1985, Paias Wingti led a faction of the party to split with Somare, and Wingti won a no confidence vote against Somare, succeeding him as prime minister. In 1988, Somare was replaced as leader of Pangu by Rabbie Namaliu who served as prime minister from 1988 to 1992. Somare is now leader of the National Alliance Party.
At the 2002 elections, the party won 6 of 109 seats, under the leadership of Chris Haiveta. After that election, Somare returned to power as prime minister. Pangu became a member of his coalition government, and continued to support the Somare government after the 2007 elections, in which Pangu won 5 seats. At the 2012 elections, it only won one seat.
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