The Integrated Social Development Centre (ISODEC) has kicked against the new Policy Coordination Instrument (PCI) agreement between the Government of Ghana and the International Monetary Fund (IMF), arguing that the arrangement will not benefit the country.

The policy and advocacy organisation says the decision by government to enter another IMF-backed programme, just weeks after concluding the $3 billion Extended Credit Facility (ECF), represents a continuation of Ghana’s dependence on external economic control rather than a path toward genuine economic independence.

In a statement issued in Accra and copied to The Ghanaian Times, ISODEC said the PCI, though described as a non-financing arrangement, still imposes strict policy conditionalities similar to those attached to IMF loan programmes.

It explained that under the arrangement, the IMF would assess Ghana’s economic policies every six months—a process the organisation argues could undermine the country’s economic sovereignty and place its borrowing credibility under external supervision.

“The PCI is structural adjustment by another name. It does not provide financing, but it imposes conditionality, and that is precisely the problem,” the organisation stressed.

ISODEC noted that government’s justification that the PCI would improve investor confidence and create room for more international borrowing reflects what it described as a “dangerous dependence on external debt.”

It maintained that Ghana’s economic challenges cannot be resolved through repeated IMF oversight, but rather through strengthening domestic fiscal capacity and implementing policies tailored to the country’s development needs.

According to ISODEC, the IMF’s emphasis on expenditure cuts, subsidy removals, and strict deficit targets has over the years contributed to hardship for Ghanaians, including pressure on public services and employment opportunities.

ISODEC argued that Ghana, as a sovereign issuer of its own currency, should focus on policies that expand domestic production, reduce import dependency, and create sustainable jobs.

The organisation also raised concerns about illicit financial flows (IFFs), which it says continue to deprive the country of critical revenue. It estimated that Ghana lost about $32.6 billion between 2013 and 2023 through trade misinvoicing, tax abuse, and related practices.

It argued that the amount lost through illicit financial flows far exceeds the support Ghana stands to gain from IMF programmes.

ISODEC therefore called on government to intensify efforts to combat illicit financial flows through stronger customs enforcement, improved tax administration, and the renegotiation of extractive sector agreements.

Among its recommendations, the organisation proposed the adoption of a Functional Finance framework for national budgeting, the implementation of a national Job Guarantee Programme, and the exploration of alternative African financing arrangements such as the Pan-African Payment and Settlement System (PAPSS), the African Export-Import Bank, and other South-South financing partnerships.

It also called on Parliament to conduct a comprehensive review of the long-term impact of IMF conditionalities on Ghana’s economic development, fiscal autonomy, and public service delivery before approving any new arrangement.

ISODEC stressed that Ghana’s future depends on building a self-reliant economy anchored on domestic resource mobilisation, productive investment, and national sovereignty rather than continued dependence on IMF supervision.