Accra: While delivering the government's mid-year fiscal policy review for 2026, Finance Minister Dr. Cassiel Ato Forson provided a comprehensive plan for the implementation of the Policy Coordination Instrument (PCI), which the government and the International Monetary Fund (IMF) have agreed to collaborate on over the next 36 months. The PCI is set to commence immediately following the expected formal approval by the end of this month by the IMF's Executive Board of the Staff-Level Agreement reached on May 15, 2026, concerning the Sixth and Final Review of the three-year Extended Credit Facility (ECF) Programme.
According to Ghana Web, upon approval, Ghana will receive the final tranche of approximately US$370 million, bringing total disbursements to the full US$3 billion committed when the programme was approved in May 2023. Dr. Forson asserted that Ghana has met nearly all the targets set under the ECF. He elaborated that every quantitative performance criterion, save one, set for the final review has been met, including the floor on net international reserves of the Bank of Ghana (BoG) and various ceilings concerning external debt and fiscal balance.
Dr. Forson revealed that the only Quantitative Performance Criterion (QPC) not met was the ceiling on changes to the Bank of Ghana's claims on the central government and public entities. This was attributed to the accounting treatment of the government's GHS5 billion recapitalization bond issued to the Bank of Ghana. He further stated that every indicative target and almost every structural benchmark have been achieved, with Ghana meeting 10 out of 11 quantitative targets and 8 out of 10 structural benchmarks.
However, completing the ECF does not signify Ghana's departure from the IMF, as the country remains an IMF-member. It rather means a change in the nature of the relationship. Dr. Forson explained that post-ECF, Ghana's engagement with the IMF will transition to a reform-focused, non-financing Policy Coordination Instrument. As part of the Sixth Review discussions, the government has requested a 36-month PCI, to take effect after the ECF programme concludes.
The PCI, a non-financing IMF instrument, is designed for countries that do not require IMF financing but seek a credible framework for reform, regular policy reviews, and a stronger signal to investors and development partners. Dr. Forson emphasized that the PCI would enable Ghana to continue leveraging the IMF's regular policy assessments and expertise as a signal to investors, enhancing the credibility of its governance and credit rating.
This structured, internationally monitored platform commits Ghana to a specific set of macroeconomic and structural reform policies, subject to regular independent review. It signals to the world that the discipline of the past eighteen months is a permanent feature of governance. The PCI is anchored on six broad pillars defining Ghana's post-crisis economic management architecture: sustaining growth-friendly fiscal adjustment, safeguarding debt sustainability, strengthening fiscal transparency and governance, enhancing monetary and exchange rate policy framework, reinforcing financial sector stability, and supporting economic diversification and inclusive growth.
Dr. Forson outlined that the overarching objectives remain to reinforce macroeconomic resilience, focusing on safeguarding public debt sustainability while creating space for priority spending through strengthening domestic revenue mobilization and making spending more growth-friendly. The plan also includes strengthening social safety nets, implementing a more flexible exchange rate regime, pursuing a forward-looking, data-driven monetary policy, and bolstering stronger and more inclusive growth while reducing youth unemployment and poverty.
Under the PCI, by June 2027, the Ghana Revenue Authority is expected to complete a comprehensive review of income tax legislation to strengthen revenue mobilization and improve tax system efficiency and fairness. During the same period, the Ministry of Finance aims to publish a new Medium Term Revenue Strategy (2027-2030) to enhance revenue mobilization. It will also review the State-Owned Enterprises (SOE) portfolio to improve governance, ensure publication of audited financial statements for public entities, operationalize the Value for Money Office, and expand GIFMIS coverage to strengthen budget execution and expenditure controls.
Additionally, the Public Procurement Authority is tasked with publishing the 2026 procurement report by the middle of next year to fortify Public Financial Management procedures by reducing vulnerability to corruption. By the end of 2027, based on the SOE portfolio review, the Cabinet will decide on restructuring, consolidation, commercialization, or divestiture of relevant enterprises, with a merit-based selection process for SOE Boards and Executive Management appointments to ensure competitive and professional standards.
The Ministry of Finance will mandate the use of the GHANEPS-GIFMIS integrated system for all SOEs with central government appropriation to bolster Public Financial Management systems and cash flow management. A review of the Treasury Single Account (TSA) model will also be conducted, with an updated TSA strategy prepared for Cabinet approval.
According to Dr. Forson, the government's medium-term fiscal framework under the PCI will continue to be anchored on fiscal rules established under the amended Public Financial Management (PFM) Act. The debt-to-GDP ratio, as set in the Public Financial Management (Amendment) Act, 2025 (Act 1136), with a ceiling at 45 percent from 2034, will serve as the principal fiscal anchor. The government will seek to reduce the primary surplus target on a commitment basis from 1.5 percent of GDP to 0.5 percent of GDP from 2027 onwards while maintaining a steadfast commitment to fiscal discipline to preserve debt sustainability.