ThePrint CutTheClutter: Pakistan's economy has fallen far behind India & also Bangladesh: Who does politics reward or punish
Oct 30, 2025
Explore the stark economic contrasts between Pakistan, India, and Bangladesh. Discover how Pakistan's per capita income has dramatically fallen behind, projected at only 60% of India's by 2025. Delve into historical turning points, from the impact of the 1991 crisis to the evolution of Bangladesh under Hasina's leadership. Uncover why Pakistan's reliance on geopolitical aid has stymied growth and led to rising poverty. Finally, witness how Bangladesh's focus on female empowerment and export growth has propelled its economy ahead.
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Pakistan's Relative Decline
- Pakistan's per capita GDP has fallen sharply relative to India and Bangladesh over the past 15 years.
- IMF data show this decline reflects lower investment and higher population growth in Pakistan.
Investment Explains Growth Gaps
- Investment rates strongly correlate with growth and living standards.
- Pakistan's investment is ~15% versus India's ~30%, explaining slower growth.
Personal Visit To 1985 Pakistan
- Shekhar Gupta recounts visiting Pakistan in 1985 and seeing much better urban living than in India.
- He ties that impression to Pakistan's then higher per capita income compared to India.