PSC raises issues of sole sourcing, increased taxes, other concerns with IMF team
As time winds down on the one-week visit by a delegation from the International Monetary Fund (IMF) who are here to check up on the country’s economic health, the team met with officials of the Private Sector Commission (PSC) on Thursday.
During the meeting, the discussions ranged over a broad spectrum of issues, which currently engage the attention of the Commission.
PSC officials meeting with the visiting IMF mission on Thursday
The PSC expressed its satisfaction with the current Government’s operationalising of the Public Procurement Commission (PPC) and facilitation of Local Government Elections (LGE), which had not been held for many years. However, at the same time, concerns were expressed over instances of sole sourcing of contracts which have occurred despite the existence of the Procurement Commission.
Additionally, the decline in the value of the Guyana dollar was also discussed, with the IMF representatives suggesting that a flexible exchange rate, which allowed the currency to revalue itself in response to market forces, was ideal.
Moreover, in response to questions from the mission as to the cause of a loss of investor’s confidence, the PSC pointed to increased taxation and a degree of uncertainty as to the direction in which the economy was moving.
Nevertheless, the representatives of the Commission indicated their willingness to cooperate with Government in the national interest and to assist in helping to right the economy.
Only Monday last, Finance Minister Winston Jordan had stated that the existing state of affairs in the country was an indication that the economy was in fact “righting” itself.
“I believe that the ordinary man may not feel it as he did four, five years ago, but the reality is that the economy is righting itself,” he said on the “Jump Start” local radio programme.
According to Jordan, five years ago, the economy was moving ahead, however, there has not been much sustainability especially in many of the sectors that once propelled the economy.
“…I did mention that this economy is growing, yes; but it was running on fumes. In other words, it was running on its last, so you didn’t have sustainability. The same things that generated the growth, after 50 years the same sectors (rice, sugar, gold, forestry, bauxite) remained. But a number of these sectors have collapsed and with it, the earnings and the employment that used to go with it,” the Finance Minister had explained.
Meanwhile, the IMF team, during the meeting with the PSC officials, observed that the Private Sector is indeed the catalyst of growth and plays a crucial role in job creation. The team is scheduled to depart today. Their visit is in keeping with IMF’s Article IV Mission.
Under Article IV of the IMF’s Articles of Agreement, the IMF usually holds bilateral discussions with members every year. During those consultations, the mission reviews the overall economic developments in the country, as well as its policy measures aimed at maintaining economic stability, ensuring a sustainable external balance and further liberalising foreign trade.
Upon the completion of the IMF mission consultations, the IMF Executive Board discusses the staff report and issues an assessment of the country’s economic situation and the adequacy of its economic policy measures, based on a comprehensive analysis of the overall economic situation and the wider fiscal policy strategy of the member country.
