IMF asks gov’t to increase tariffs

The International Monetary Fund (IMF) has urged Government to increase electricity tariff.

The move, according to the Fund, would help address the energy supply problems in the country.

The Executive Board of the IMF, which made the recommendation in statement, welcomed the decision of Government to remove fuel subsidies and called for similar action to adjust electricity tariff to tackle Ghana’s energy supply problems.

The load shedding exercise started in October last year, and Government gave the assurance that it would resolve the problem with urgency.

In April, this year, the IMF said in a statement that the current energy crisis in Ghana could curtail the country’s economic growth if not resolved.

In its assessment of Ghana’s economy, the Fund noted that despite the country’s strong economic potential, short-term stability risks had risen.

The Executive Directors urged the country to improve its revenue mobilization, including the implementation of envisaged tax policy measures.

They, however, commended efforts by Ghana to reduce poverty and reach lower middle income status.

“With favorable prospects for oil and gas production and a supportive business environment, directors saw strong potential for sustained and inclusive growth, provided current macroeconomic vulnerabilities are addressed decisively,” the statement said.