Comparative Analysis of Pakistan and Bangladesh's Economic Performance

Abstract

The study provides a comparative analysis of Pakistan and Bangladesh’s economies, 
examining their divergent trajectories since Bangladesh’s independence in 1971. In this 
Descriptive analysis using macroeconomic indicators (GDP growth, inflation, and poverty 
rates), sectoral contributions, trade dynamics, and human development metrics from 2015–
2023, the analysis reveals Bangladesh’s outperformance in GDP growth (averaging 6–7% vs. 
Pakistan’s 4–5%), poverty reduction (20% vs. 24%), and human development (HDI: 0.66 vs. 
0.54). Key drivers include Bangladesh’s export-led garment industry, female workforce 
participation, and stable monetary policies, contrasted with Pakistan’s challenges of political 
instability, energy shortages, and fiscal deficits. Despite shared vulnerabilities like climate 
risks, Bangladesh’s focus on microfinance, remittance inflows, and rural electrification has 
bolstered resilience, while Pakistan’s reliance on agriculture and cyclical debt crises hinder 
progress. The paper underscores Bangladesh’s success in leveraging demographic dividends 
and globalization, while Pakistan struggles with governance and infrastructure gaps. Policy 
recommendations emphasize structural reforms, renewable energy investments, and enhanced 
social safety nets for Pakistan, and diversification into high-value industries for Bangladesh.