ISODEC criticises government’s planned IMF PCI arrangement

Policy think tank, the Integrated Social Development Centre (ISODEC), has criticised the government’s decision to pursue a new International Monetary Fund (IMF) Policy Coordination Instrument (PCI) arrangement, warning that Ghana risks surrendering aspects of its economic independence to external institutions.

Speaking on The Point of View on Monday, May 18, economist with ISODEC, Dr Adamu Abile, argued that Ghana’s recent macroeconomic stability was driven largely by domestic interventions rather than the IMF’s $3 billion Extended Credit Facility programme.

According to him, measures such as gold reserve accumulation and improved foreign exchange management contributed more significantly to stabilising the economy.

“It is not necessarily the IMF programme that brought us here,” Dr Abile stated.

He argued that Ghana’s repeated reliance on IMF support exposes long-standing structural weaknesses and excessive dependence on external policy guidance.

Dr Abile also rejected claims that the proposed PCI arrangement would enhance Ghana’s credibility with investors and international ratings agencies, insisting that such arguments promote continued dependence on borrowing.

“When you talk about giving us policy credibility so that we have market confidence to go back and borrow, ISODEC has a serious objection to that,” he stressed.

The economist further called for a development strategy focused on domestic ownership and control of strategic national resources, particularly within the mining and gold sectors.

He questioned the notion that Ghana lacks the capacity to independently manage its economy without external supervision.

“We are trying to outsource our policy sovereignty to Washington,” Dr Abile warned.

Government, however, maintains that the proposed PCI arrangement is purely a technical and monitoring framework designed to sustain fiscal discipline and prevent future economic setbacks following Ghana’s exit from the IMF bailout programme.