Economic discipline, not excuses, is what’s fixing the cedi— Khalid takes a swipe at NPP

Dr. Sharif Mahmud Khalid, the Economic Policy Adviser to the Vice President, criticized the previous NPP government. He accused it of reckless borrowing and poor economic management. This led to what he calls “an overheated economy” for the new administration.

In a defense of the current government's economic strategy, Dr. Khalid emphasized the need to simplify explanations. He noted that recent stability of the cedi did not happen overnight. It resulted from painful reforms that the previous government avoided.

“Let me go basic,” Dr. Khalid said on Metro TV's Good Morning Ghana. He asked what kind of economy would exist without commitment to key programs like domestic debt exchange and IMF support.

He pointed out that the opposition wants to distance itself from its past actions. During their tenure, they oversaw a controversial borrowing spree.

“When we took office, all figures were negative,” he explained. The central bank was posting losses, and a domestic debt exchange program was underway. Even pensions were affected by this situation.

Dr. Khalid believes that the current administration’s commitment has led to macroeconomic stability. He credited improvements to actions like reviving the Sinking Fund and reducing government size.

“We reactivated the Sinking Fund which had just over $60,000 when we took over,” he stated. They paid debts where possible and managed funds prudently. “That’s what prudent economic management looks like,” he concluded.