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Pakistan's bailout gravy train
September 21, 2013
IT'S a dilemma for the ages. For over two decades now, Pakistan has received bailouts from the IMF. And this repeated recourse to foreign funds as a bailout has created some very perverse incentives within the country, and bent it all out of shape.

A few years ago, while in conversation with a top banker in Karachi, I asked him why bank lending to the private sector had fallen to such dismally low levels."There's no demand from the private sector,' he replied comfortably.

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