OUR ISLAMIC NEIGHBOURS

FORMERLY PART OF INDIA

KNOW THY NEIGHBOUR

SARASIJ MAJUMDER

The Social, Political, economic condition of our  neighbors are important to us for overall Geo-Political stability of the area. And economic prosperity is reasonably linked to others.

Let us first compare Bangladesh with Pakistan, and the try to co-relate.

To compare Pakistan's economy to that of Bangladesh, we can look at several key economic indicators such as GDP, GDP per capita, growth rate, inflation, foreign exchange reserves, and Human Development Index (HDI). Here’s an overview based on recent data available in Public Domain:

1. Gross Domestic Product (GDP)

• Pakistan: As of 2023, Pakistan's GDP is approximately $347 billion.
• Bangladesh: Bangladesh's GDP is around $416 billion, making it  fast-growing economies in South Asia.

2. GDP per Capita

• Pakistan: The GDP per capita is about $1,561.
• Bangladesh: The GDP per capita stands at roughly $2,502, reflecting a significant improvement over the past decade.

3. Economic Growth Rate

• Pakistan: Pakistan's economic growth has been inconsistent, with an average growth rate of around 2-3% in recent years.
• Bangladesh: Bangladesh has experienced robust economic growth, averaging around 6-7% annually, driven by its manufacturing sector, particularly textiles and garments, on which—it is somewhat dependent on Raw Materials from India.

4. Inflation Rate

• Pakistan: The inflation rate in Pakistan has been relatively high, hovering around 24-25%, (Inflation rate edited) with occasional spikes due to economic instability and currency devaluation.
• Bangladesh: Bangladesh maintains a relatively lower inflation rate, typically around 5-6%, reflecting more stable economic conditions.

5. Foreign Exchange Reserves

• Pakistan: Foreign exchange reserves are a critical issue for Pakistan, often fluctuating and currently around $4-5 billion, causing challenges in managing external debt and imports.
• Bangladesh: Bangladesh has more robust foreign exchange reserves, approximately $35 billion, providing a cushion for external economic shocks.

6. Human Development Index (HDI)

• Pakistan: Pakistan’s HDI is 0.557, ranking it 154th globally, indicating challenges in health, education, and living standards.
• Bangladesh: Bangladesh has an HDI of 0.632, ranking 133rd, reflecting better performance in human development indicators compared to Pakistan.

7. Sectoral Contributions to GDP

• Pakistan: The economy is diverse but heavily reliant on agriculture (around 20% of GDP), services (about 53%), and industry (around 27%).
• Bangladesh: Bangladesh's economy is increasingly industrial, with the manufacturing sector (especially textiles) contributing significantly to GDP, along with services and agriculture.

8. Trade Balance

• Pakistan: Pakistan often runs a trade deficit, importing more than it exports, which strains its foreign reserves.
• Bangladesh: Bangladesh has a better trade balance, with substantial exports of garments and textiles, though it also faces trade deficits.

9.0 Debt

·         PAKISTAN HAS A CURRENT OUTSTANDING FOREIGN DEBT ESTIMATED AT US$124.5 BILLION OR 42 PER CENT OF GDP.

 

·         THE GOVERNMENT'S TOTAL DEBT AMOUNTED TO $166.65 BILLION IN FY23.

Comparison with Other  Neighbours:

Sri Lanka: Sri Lanka, with a GDP of about $85 billion and GDP per capita of around $3,800, has faced recent economic crises, including high debt and inflation.

Nepal: Nepal's economy is smaller, with a GDP of approximately $40 billion and GDP per capita of around $1,100, relying heavily on agriculture and remittances.

Summary

Bangladesh has shown remarkable economic progress over the past decade, outpacing Pakistan in several key economic indicators, including GDP per capita, growth rate, and HDI. Pakistan, while having a larger economy in absolute terms compared to smaller South Asian nations like Sri Lanka and Nepal, faces significant challenges such as high inflation, political instability, and lower human development outcomes.

CHINA is exploiting the poor economic condition of all these states, to fulfil its Geo-Political Agenda.

India as  the regional powerhouse with a much larger economy and higher growth trajectory, has to contain China, and provide stability to the region—an added responsibility..

References:- All informations are in Public Domain.

Image:- Google