Dhaka [Bangladesh], June 14 : Once Bangladesh was labelled as the "basket case" by the then US National Security Adviser Henry Kissinger has now outpaced Pakistan which it was once part of, reported Bangladeshlivenews citing Daily Jang.
The Bangladeshlivenews reported that Bangladesh left Pakistan behind in all the sectors of the economy in 2023-24 as Dhaka presented a budget of USD 71 billion and a growth rate of 7.5 per cent, whereas Pakistan's growth rate is only 3.5 per cent and inflation cost is 21 per cent. Bangladesh has also outshone Pakistan in population planning.
Currently, the Cash-strapped nation is also suffering from the issue of political crisis and also the lack of population planning.
Despite having a larger population in 1951, Bangladesh through effective population planning campaigns has kept its population at 165 million, compared to Pakistan's 200 million.
According to Bangladeshlivenews, the share of women in the labor force has consistently grown in Bangladesh, while it has decreased in Pakistan, further showing the divergence in their economic paths.
In the past few years, Bangladesh has managed to transform its economy. Despite suffering the similar problem as Pakistan like messy politics, weak public administration, and high corruption, Bangladesh has come a long way.
The Asian Phoenix's growth rate is significantly higher than Pakistan, and by May 2021, its foreign exchange reserves had hit a record USD 45 billion. At that time, Pakistan's reserves were only USD 17 billion and today they are USD 4 billion.
Just how sharp the contrast is can be seen as Bangladesh's economy has increased by 271 times in the last 50 years, demonstrating a consistent and resilient trajectory of growth.
But Bangladesh focused on its labour-intensive light manufacturing industry and became the world's second-largest clothing exporter after China. It is a testament to their innovative approach that Bangladesh, a country that does not grow cotton, has managed to create thousands of garment factories, which contribute significantly to its USD35 billion in exports.
The state of play in economic terms is as follows, Bangladesh has almost USD 31 billion in reserves whereas Pakistan has less than USD 4 billion and, that too, with loans from friendly nations.
Bangladesh's export target in the current year is USD 67 billion while Pakistan's is USD 38 billion, adding that as per the statistics, Pakistan can provide export and services for only USD 21.5 billion which is very less than the target.
Pakistan, once a promising post-colonial state, is today a nation mired in political turmoil and economic instability, a legacy of several decades of military rule that deliberately minimised the role of democratic institutions, reported Bangladeshlivenews.
Pakistan's downfall can be attributed to factors including corrupt leadership, irresponsible fiscal policies, and the deep state's sponsorship of terrorism. Furthermore, Pakistan's excessive reliance on domestic and foreign debt, fueled by overconsumption and import-intensive policies, has led to unsustainable external debt, further weakening its economy.
Bangladesh and Pakistan's divergent paths highlight the importance of effective leadership, prudent fiscal policies, and a commitment to human development. While Bangladesh has focused on economic growth, improving health, and reducing unemployment, Pakistan's priorities have been skewed towards regional power struggles, thus ignoring the development of its human capital.
Bangladesh have learnt their lesson and that is to keep the Army as far away from politics as possible, otherwise, the country will become like Pakistan, according to Bangladeshlivenews.
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