JOHN DOE SEPT 15, 2017
JOHN DOE SEPT 15, 2017
Bangladesh vs Pakistan Economy Comparison
Current Economic Position Analysis
Quick Answer
Bangladesh currently has a stronger economic position than Pakistan, with higher GDP, faster growth, lower debt-to-GDP ratio, and better per capita income. Pakistan has shown some recent stabilization under IMF programs but still faces heavier debt and slower growth.[1][2]
Key Economic Indicators (2024–2025)
| Indicator (2024–25) | Bangladesh | Pakistan |
|---|---|---|
| GDP (Nominal, 2024) | $451 billion | $373 billion |
| GDP Growth (2024–25) | 4.0% (ADB forecast) | 2.7% (KPMG, Finance Ministry) |
| GDP per Capita (2024) | $2,622 | $1,581 |
| Government Debt (2024) | $181 billion (≈40% of GDP) | $261 billion (≈70–74% of GDP) |
| Inflation (2025 forecast) | ~10% | ~8% (declining trend) |
| Exports (2024–25) | ~$55 billion, led by garments | ~$30 billion, led by textiles & agriculture |
| Current Account Balance | Narrowing deficit | Surplus of $1.8 billion (FY25) |
| Poverty Trends | Rising slightly (9.3% extreme poverty in 2025) | Persistent poverty pressures, worsened by inflation |
Analysis
Bangladesh
Strengths:
- Sustained growth averaging above 6% for the past decade.
- Export-driven economy, especially garments (~80% of exports).
- Lower debt-to-GDP ratio (~40%), giving more fiscal space.
- Higher per capita income ($2,622 in 2024).
Challenges:
- Inflation remains high (~10% in 2025).
- Political uncertainty and global trade disruptions are slowing investment.
- Poverty reduction progress has stalled, with extreme poverty rising.
Pakistan
Strengths:
- Recent stabilization under IMF programs, with fiscal deficit shrinking to 2.6% of GDP.
- Inflation easing compared to 2023 highs.
- Current account surplus achieved in FY25.
Challenges:
- Slower GDP growth (2.7% in FY25).
- Heavy debt burden (~70–74% of GDP).
- Lower per capita income ($1,581 in 2024).
- Structural issues: energy pricing, tax collection, and reliance on external financing.
Comparative Outlook
- Bangladesh is ahead in GDP size, per capita income, and debt sustainability.
- Pakistan is struggling with slower growth and higher debt but has shown signs of stabilization in 2025.
- Both countries face inflationary pressures and poverty challenges, but Bangladesh’s export-led model gives it more resilience, while Pakistan remains more dependent on external aid and IMF programs.
Overall, Bangladesh currently holds a stronger economic position than Pakistan.[1][2]