The Minority Leader in Parliament, Dr Cassiel Ato Forson in a reaction to the completion of processes leading to the IMF’s Executive Board approval of Ghana’s request for a Fund-supported programme says Ghanaians should brace themselves for more hardships under the programme.
“Let us brace ourselves for the full consequences of this IMF deal, which will without doubt bite hard on Ghanaians, especially the youth. This is not a counsel of despair, but a reality that will soon dawn on all of us,” he stated.
“Suffice it to say, that the Akufo-Addo/Bawumia government, as part of their proposal to the IMF to secure this deal, has agreed to increase utility tariffs every three months from last year. So far, since September 2022, electricity tariff have gone up by a cumulative figure of 75.32% (27% in September 2022, 29.96% in the last quarter of 2022 and 18.36% a few days ago), Dr Ato Forson wrote in a press statement he issued Thursday afternoon (May 18, 2023).
Dr Ato Forson’s statement was released moments after the IMF and Ghana held a joint press conference on Thursday in Washington to provide further details on the $3 billion three-year extended credit facility approved for Ghana.
The IMF Mission Chief to Ghana, Stéphane Roudet, opened the press conference by emphasizing the three strong pillars of the programme.
The first pillar, he said focuses on restoring Ghana’s economy, while the second pillar aims to establish sustainable growth. The third pillar he said is centered on laying a solid foundation for a robust economy.
Mr Roudet also highlighted the programme’s goals, which he said include enhancing Ghana’s resilience to shocks, improving foreign exchange (FX) stability, controlling inflation, mobilizing more domestic revenue, and reducing public spending.
The opposition National Democratic Congress since 2021 had advocated for an IMF bailout and argues it would have been the best time for the government since things were not “critically dire” in 2021.
But now that the deal has been completed and approved, Dr Ato Forson is predicting more hardship, especially for the youth.
Source: Graphiconline
