Stories about International Finance Corporation (IFC)

Will Pakistan forever be indebted to China for CPEC?

Loans are no fun, nor is $51.5 billion coming under the cover of China–Pakistan Economic Corridor (CPEC). It is easy to find yourself in debt, but it is hard to get out of it. This leads to the question, how will Pakistan get out of Chinese loans? CPEC has financial arrangements on South-South Cooperation model which don’t just depend on giving aid like the North-South Cooperation. Under this Cooperation, China has made use of four major tactics: investment, aid/grants, joint ventures and equity ratio. And when BOT (build-operate-transfer) is not possible, the next best alternative is opting for soft loans. These loans are comprised of three categories: preferential ...

Read Full Post

Talking business

I once interviewed a brilliant young man, who started a business with a total investment of Rs800 and achieved the annual turnover of one million rupees in less than three years. He was in his early 20s and had a degree in business studies. But when I asked whether his business paid taxes and was a formally registered entity, he said he had so far managed to steer clear of all government offices. Their registration procedures are tedious, he told me, and he’d rather build his business than waste time standing in queues outside government offices. So what’s the exact number ...

Read Full Post