How Has Bangladesh Left Pakistan Behind in Per Capita Income?

[Mage]

Worrier class always superior over trader class.

Not really. Traders/Merchants always had more influence.

 

[farhan_9909]

Hum ghareeb kia hue saari dunya hi ameer ho gye

 

[DESERT FIGHTER]

My childhood memories include pictures of homeless, typhoon-stricken Bengalis in rags vs. West Pakistanis in fashionable clothes going to the movies. That these Bengalis have gone from ragged to richer in two generations is tough to grasp.

We belieb jou.

Afterall baby Zionist solomon scumbag had a Pak bengali diplomat as hia neighbor whod show him pics of poor east Pak bengalis and rich evil racist West Pakistanis in armanis and Gucci's.

@RiazHaq, @Joe Shearer

Brofessor sahib,

Yeh kya hua, kaise hua? It seems just the other day (2007 if I recall) that you walked into our humble abode on chowk.com and gave us Hindoos a bloody nose. You could produce at the drop of a hat a whole range of indices- from A to Z- where Pakistan could be seen to be beating India (let alone puny BD) hollow. And now doing tu tu main main with BD....

Time to remind CO of Brigade 111 of his patriotic duty?

Regards

A brigade has a Brigade commander... A CO is commanding officer of a unit.

Agar Chutiyapa Karna hai, akal k sath tou kar.

 

[Solomon2]

We belieb jou.

Afterall baby Zionist solomon scumbag had a Pak bengali diplomat as hia neighbor whod show him pics of poor east Pak bengalis and rich evil racist West Pakistanis in armanis and Gucci's.

He didn't need to show me that; the pics were in Western newspapers, especially after the typhoon devastated East Pakistan.

The story of the "Pak bengali diplomat" - doesn't that fascinate you? After all, you remembered it. It was really tough for him to betray his oath of loyalty to Pakistan. But in the end he said, "Whatever Pakistan was supposed to become, this wasn't it" and decided for Bangladesh - without friends, with few colleagues, and with absolutely no support from the U.S. State Department. It would make a good historical drama, wouldn't you agree?

 

[Nilgiri]

Hum ghareeb kia hue saari dunya hi ameer ho gye

Always hillarious when this lot resurrects a thread.

BTW you, @RiazHaq and @DESERT FIGHTER and rest of Pakistanis interested on the matter should read this thread (if you haven't already) to get an idea of the BD misinformation (I am being polite) being used, and what happens inevitably when they get shown the mirror on it:

https://defence.pk/pdf/threads/bangladesh-targets-7-8-economic-growth-in-new-fiscal-year.562317/

 

[SoulSpokesman]

@DESERT FIGHTER

A brigade has a Brigade commander... A CO is commanding officer of a unit. Agar Chutiyapa Karna hai, akal k sath tou kar

Thanks for the correction, sir. Lets remind the Brigae Commander of 111 of his patriotic duties.

Regards

 

[doorstar]

http://www.riazhaq.com/2017/09/how-has-bangladesh-left-pakistan-behind.html

A headline in the Economist magazine's recent issue screams: "Bangladesh's GDP per person is now higher than Pakistan's". Let's examine this development to understand its causes.

Per Capita GDP:

The Economist article explains its headline as follows: "Last month revealed a remarkable turnaround. Bangladesh’s GDP per person is now higher than Pakistan’s. Converted into dollars at market exchange rates, it was $1,538 in the past fiscal year (which ended on June 30th). Pakistan’s was about $1,470....Strange as it may sound, Bangladesh jumped ahead because of an advance in Pakistan. On August 25th Pakistan released the results of its census, updating earlier population estimates. They showed that the country has 207.8m people, more than 9m more than previously thought. It may now have the fifth biggest population in the world, surpassing Brazil’s. But the new count also lopped 4-5% off Pakistan’s GDP per person, the arithmetic consequence of revealing so many more people."

Economic Growth Trends:

One can quibble with the Economist on details of its report but the fact remains that Bangladesh's economy has been growing significantly faster than Pakistan's for about a decade. To understand why, it's important to look into savings and investments, population growth trends and security situation in the two countries. Let's examine each in a little more detail.


Source: State Bank of Pakistan

Savings and Investment:

There's a strong relationship between investment levels and gross domestic product. The more a country saves and invests, the higher its economic growth. A State Bank of Pakistan report explains it as below:

"National savings (in Pakistan) as percent of GDP were around 10 percent during 1960s, which increased to above 15percent in 2000s, but declined afterward. Pakistan’s saving rate also compares unfavorably with that in neighboring countries: last five years average saving rate in India was 31.9 percent, Bangladesh 29.7 percent, and Sri Lanka 24.5 percent..... Similarly, domestic savings (measured as national savings less net factor income from abroad) also declined from about 15 percent of GDP in 2000s, to less than 9 percent in recent years. Domestic savings are imperative for sustainable growth, because inflow of income from abroad (remittances and other factor income) is uncertain due to cyclical movements in world economies, exchange rates, and external shocks".


Source: State Bank of Pakistan

Population Trends:

The total fertility rate (TFR) in Bangladesh has declined faster in Bangladesh than in Pakistan in the last few decades. Currently, Bangladesh is at 2.17 children per woman while Pakistan is at 2.62 children per woman.

As a result of reduced birth rates and more female labor participation rates, a larger percentage of Bangladeshi population is in the work force than Pakistan's. There are now more wage earners and fewer dependents in each Bangladeshi household. This demographic trend has helped boost Bangladesh's per capita income faster than Pakistan's.

Rising working age population and growing workforce participation of both men and women in Pakistan will significantly boost domestic savings and investment. Increased foreign direct investment such as Chinese investment in China-Pakistan Economic Corridor over the next several decades will help fill the gap between the national savings rate and investments required to reach 7% annual GDP growth to create over 2 million jobs a year.

Security Issues:

Pakistan has paid a heavy price for its proximity to and involvement in "war on terror" in Afghanistan. It has cost Pakistan dearly in terms of loss of thousands of precious lives and lower investments due to investors' security concerns. Recent operations by Pakistan Army have helped turn the tide against terrorists, bringing more hope and greater confidence in Pakistan's future. Rising FDI in CPEC-related projects in the last coupe of years are an indication of this confidence.

Future:

Pakistan is now experiencing the demographic dividend that Bangladesh has seen in the last few decades in terms of more of its population earning and fewer dependents. Pakistan's labor force is growing at 3.6% a year, much faster than its population growth rate of 2.34%. This should help boost Pakistan's per capita and its domestic savings rate.

At the same time, China-Pakistan Economic Corridor (CPEC) related projects are bringing more foreign direct investment, thereby speeding up the economic growth in the country. Pakistan's GDP growth is accelerating from less than 5% two years ago to 6% forecast for fiscal 2017-18. In its latest economic growth projections, Kennedy School's Center for International Development (CID) at Harvard University expects Pakistan's annual GDP growth to average 5.97% over the next 8 years, ranking it as the world's 6th fastest growing economy. It is within the realm of possibility that economic growth in Pakistan could exceed 7% in the next couple of years.

Summary:

Pakistan has fallen behind Bangladesh and India in per capita income as its growth rates have slipped in recent years mainly due to declining savings and investment rates and security issues. Demographic trends and improved security situation now favor Pakistan's future growth as its workforce grows and household sizes shrink.




Related Links:

Haq's Musings

Pakistan's Labor Force Expansion on Saving, Investments and GDP Growth

Pakistan's Population Growth: Blessing or Curse?

Pakistan's Expected Demographic Dividend

World Bank Report on Job Growth in Pakistan

Underinvestment Hurting Pakistan's GDP Growth

China-Pakistan Economic Corridor

Musharraf Accelerated Growth of Pakistan's Financial and Human Capital

Working Women Seeding a Silent Revolution in Pakistan


Median Income and Wealth in India and Pakistan

http://www.riazhaq.com/2017/09/how-has-bangladesh-left-pakistan-behind.html

Always hillarious when this lot resurrects a thread.

BTW you, @RiazHaq and @DESERT FIGHTER and rest of Pakistanis interested on the matter should read this thread (if you haven't already) to get an idea of the BD misinformation (I am being polite) being used, and what happens inevitably when they get shown the mirror on it:

https://defence.pk/pdf/threads/bangladesh-targets-7-8-economic-growth-in-new-fiscal-year.562317/

If Indians deport 20 million illegal Bangladeshi dirt poor but highly fertile people, theirs and Pakistani statistics will look much better.

 

[DarkPrince]

Not really. Traders/Merchants always had more influence.

I have to disagree warrior class is definitely superior to trader class. All Muslim rulers of Bengal were warriors that's why they took power from local hindu rulers. Even in hindu caste system warrior class is superior to trader caste.

 

[Mage]

I have to disagree warrior class is definitely superior to trader class. All Muslim rulers of Bengal were warriors that's why they took power from local hindu rulers. Even in hindu caste system warrior class is superior to trader caste.

Look at jews. And Muslims were as good as merchants as they were as warriors...when Islam spread. Prophet himself was a merchant. Muslims made a strong base in Bengal during Pala empire....and those Muslims were Traders. When Muslims were good traders they even made a strong base in China as well. Muslims were much more progressive 1000 years ago then they are now. Muslims are the only people who have regressed in the last 1000 years.

 

[DarkPrince]

Look at jews. And Muslims were as good as merchants as they were as warriors...when Islam spread. Prophet himself was a merchant. Muslims made a strong base in Bengal during Pala empire....and those Muslims were Traders. When Muslims were good traders they even made a strong base in China as well. Muslims were much more progressive 1000 years ago then they are now. Muslims are the only people who have regressed in the last 1000 years.

Jews are rich but not nearly as powerful as it shows. Isreal is existing only because of USA and the unholy alliance called zionism. What happened to their wealth when Nazis were killing them ? There is a reason why people fear Russia not Qatar.

Look mate you are right about the merchant part but Islamic culture is very much a warrior culture. I understand Bengali Muslims are spiritual minded not warrior type.

And i do believe Pakistan will always remain a more influential country than BD. Best we can do is make a better living for our population. We shouldn't compete with them. As i said before comparing Pakistan with BD is like comparing Russia with Singapore.

 

[Mage]

Jews are rich but not nearly as powerful as it shows. Isreal is existing only because of USA and the unholy alliance called zionism. What happened to their wealth when Nazis were killing them ? There is a reason why people fear Russia not Qatar.

Look mate you are right about the merchant part but Islamic culture is very much a warrior culture. I understand Bengali Muslims are spiritual minded not warrior type.

And i do believe Pakistan will always remain a more influential country than BD. Best we can do is make a better living for our population. We shouldn't compete with them. As i said before comparing Pakistan with BD is like comparing Russia with Singapore.

Israel depended heavily upon the support from the west in it's earlier days, but that's not the case anymore. And look at Israel's area and population. A tiny nation with few people. Yet it would destroy the Arabs in a war like it did even before having nukes.

Sorry but Islamic culture is well not "is" but certainly was traders culture too. According to Islam an honest trader has the same honour as a martyr. Muslims came to India as traders at first. The settled in Malaysia, Indonesia as traders. Muslims eventually let go of their trader's culture and embraced jihad as the only culture. And got weaker and weaker since then.

And i do believe Pakistan will always remain a more influential country than BD. Best we can do is make a better living for our population. We shouldn't compete with them. As i said before comparing Pakistan with BD is like comparing Russia with Singapore.

The economic difference between BD and Pak will never be like Russia and Singapore. Pakistan will remain more influential than BD it is given. And it is fine. Its better not to be involved heavily in world politics. Be like Finland than USA. Let us live in Peace. Being super power is for countries like Pakistan, India, Myanmar, Saudi Arabia, Afghanistan.