When it comes to South Asia, Pakistan and Bangladesh are two countries with intertwined histories and evolving economies. Both nations emerged from the partition of British India, with Bangladesh gaining independence from Pakistan in 1971. Since then, their economic journeys have diverged in notable ways. But which country is poorer: Pakistan or Bangladesh? This question is not just about comparing GDP numbers—it involves examining poverty rates, social indicators, economic growth, and the quality of life for ordinary citizens.
In this article, we’ll delve deep into the economic realities of both countries. We’ll look at key data, including GDP per capita, poverty headcount ratios, Human Development Index (HDI) scores, and other crucial factors. We’ll also explore the reasons behind their current economic standings and answer frequently asked questions. Whether you’re a student, researcher, or simply curious about South Asian economies, this comprehensive guide will provide valuable insights into the question: Pakistan vs Bangladesh—which country is poorer?
Pakistan vs Bangladesh: Economic Overview
GDP and GDP Per Capita
Gross Domestic Product (GDP) is a standard measure of a country’s economic output. However, GDP per capita—GDP divided by the population—gives a clearer picture of the average income and living standards.
| Indicator | Pakistan (2023 est.) | Bangladesh (2023 est.) |
|---|---|---|
| Population | ~240 million | ~170 million |
| GDP (Nominal, USD) | ~$341 billion | ~$460 billion |
| GDP per Capita (Nominal) | ~$1,420 | ~$2,700 |
| GDP Growth Rate (2023) | ~0.3% | ~5.6% |
Key Insights:
- Bangladesh’s GDP per capita is significantly higher than Pakistan’s.
- Bangladesh’s economy has grown faster in recent years, while Pakistan’s growth has stagnated.
Poverty Rates and Trends
Poverty rates are a direct indicator of how many people live below the national or international poverty line.
Pakistan
- Poverty Headcount Ratio (World Bank, 2021): ~39.4% (at $3.65/day, 2017 PPP)
- Extreme Poverty (under $2.15/day): ~4.2%
- Recent Trends: Poverty has increased due to economic instability, inflation, and natural disasters.
Bangladesh
- Poverty Headcount Ratio (World Bank, 2021): ~24.3% (at $3.65/day, 2017 PPP)
- Extreme Poverty (under $2.15/day): ~5.0%
- Recent Trends: Poverty has steadily declined over the past decade, thanks to robust economic growth and social programs.
Comparison Table: Poverty Rates
| Metric | Pakistan | Bangladesh |
|---|---|---|
| Poverty Rate ($3.65/day) | 39.4% | 24.3% |
| Extreme Poverty ($2.15/day) | 4.2% | 5.0% |
Note: While Bangladesh has a slightly higher extreme poverty rate, its overall poverty rate is much lower.
Human Development Index (HDI)
The HDI combines life expectancy, education, and per capita income indicators.
- Pakistan HDI (2022): 0.544 (Rank 161/191)
- Bangladesh HDI (2022): 0.661 (Rank 129/191)
Interpretation:
Bangladesh ranks significantly higher than Pakistan on the HDI, reflecting better average outcomes in health, education, and income.
Key Factors Behind Economic Differences
1. Economic Growth and Policy
- Bangladesh has focused on export-led growth, especially in the garment sector, which has created millions of jobs and boosted foreign exchange earnings.
- Pakistan has struggled with political instability, security issues, and inconsistent economic policies, hampering sustained growth.
2. Population Growth
- Pakistan has a higher population growth rate, putting pressure on resources, infrastructure, and job creation.
- Bangladesh has managed to slow its population growth, helping improve per capita income and social indicators.
3. Social Development
- Bangladesh has made significant progress in female education, child health, and microfinance, contributing to poverty reduction.
- Pakistan faces challenges in education access, gender equality, and healthcare.
4. External Debt and Economic Stability
- Pakistan has a higher external debt-to-GDP ratio and relies more on IMF bailouts.
- Bangladesh maintains a more stable macroeconomic environment with lower external debt.
Social Indicators: Health, Education, and Quality of Life
Education
| Indicator | Pakistan | Bangladesh |
|---|---|---|
| Adult Literacy Rate | 58% | 75% |
| School Enrollment | Lower | Higher |
Health
| Indicator | Pakistan | Bangladesh |
|---|---|---|
| Life Expectancy (2022) | 66 years | 73 years |
| Infant Mortality (per 1k) | 54 | 24 |
Gender Equality
- Bangladesh has higher female labor force participation and better gender parity in education.
- Pakistan lags behind in women’s empowerment and workforce participation.
Economic Sectors: Agriculture, Industry, Services
Agriculture
Both countries have large rural populations dependent on agriculture, but Bangladesh has diversified more successfully.
Industry
- Bangladesh: Major exporter of ready-made garments (RMG), which accounts for over 80% of exports.
- Pakistan: Textile industry is significant, but less competitive globally.
Services
Both economies are developing service sectors, but Bangladesh’s remittance inflows and IT sector are growing faster.
Challenges and Opportunities
Pakistan
Challenges:
- High inflation and currency depreciation
- Political instability
- Energy shortages
- Terrorism and security concerns
Opportunities:
- Large youth population
- Strategic location for trade
Bangladesh
Challenges:
- Vulnerability to climate change and natural disasters
- Infrastructure bottlenecks
- Need for economic diversification
Opportunities:
- Strong export sector
- Growing middle class
- Expanding digital economy
FAQ
Is Pakistan richer than Bangladesh?
No, by most economic and social indicators, Bangladesh is now ahead of Pakistan. Bangladesh has a higher GDP per capita, lower poverty rate, and better HDI ranking.
Why has Bangladesh overtaken Pakistan economically?
Bangladesh has benefited from stable economic policies, a booming garment export sector, investment in social development, and effective population control.
Which country has a higher poverty rate?
Pakistan has a higher poverty rate (39.4%) compared to Bangladesh (24.3%) at the $3.65/day poverty line.
What about extreme poverty?
Extreme poverty rates (under $2.15/day) are similar, but Bangladesh’s overall poverty reduction has been more significant.
How do education and health compare?
Bangladesh outperforms Pakistan in literacy rates, school enrollment, life expectancy, and infant mortality.
Are there areas where Pakistan is ahead?
Pakistan has a larger overall economy and more natural resources, but these have not translated into higher living standards.
Conclusion: Which Country Is Poorer?
Based on the latest data and a wide range of indicators, Pakistan is currently poorer than Bangladesh. Bangladesh has surpassed Pakistan in GDP per capita, poverty reduction, human development, health, and education. While both countries face significant challenges, Bangladesh’s consistent economic growth and social progress have lifted millions out of poverty, whereas Pakistan has struggled with economic stagnation and rising poverty rates.
Key Takeaways:
- Bangladesh has a higher GDP per capita and lower poverty rate than Pakistan.
- Social indicators like literacy, life expectancy, and gender equality are better in Bangladesh.
- Both countries have potential for growth, but Bangladesh’s recent trajectory has been more positive.
Final Recommendation
For policymakers, researchers, and development organizations, Bangladesh’s experience offers valuable lessons in export-led growth, social investment, and poverty reduction. Pakistan, meanwhile, needs to address structural challenges and invest in human capital to catch up.
