Pakistan vs Bangladesh: Two Economies, Two Trajectories, One Stark Divide in Exports. Pakistan’s GDP Hits Record $452 Billion, But Bangladesh’s Exports Leave It Far Behind.
Despite a record $452 billion GDP, Pakistan’s export engine remains a fraction of Bangladesh’s, exposing a widening gap between an economy’s size and its ability to earn from the world.
By Imran Malik | MediaBites Pakistan
Pakistan’s economy has just touched its highest-ever size of $452.1 billion, but a side-by-side look at Bangladesh tells a more uncomfortable story, one of two neighbours moving in very different directions when it comes to global trade.
The GDP Picture
Pakistan’s GDP grew 11.3% year-on-year to reach $452.1 billion in FY2025-26, though growth of 3.7% fell short of the government’s 4% target, Finance Minister Muhammad Aurangzeb said while presenting the Economic Survey 2025-26.
Bangladesh, by comparison, is targeting 6.5% growth for FY2026-27. Its nominal GDP stood at $510.70 billion as of 2026, with a growth rate of 4.7%, according to the IMF. That places Bangladesh’s economy nearly $60 billion ahead of Pakistan’s, despite having a smaller population.
Per Capita Income: The Real Gap
This is where the divide becomes sharper. Bangladesh’s GDP per capita reached $2,911 in 2026, up from $2,636 in 2025, a 10.5% increase, for a population of roughly 177.8 million.
Pakistan, with a population significantly larger than Bangladesh’s GDP base would suggest, continues to lag behind on a per-head basis, a gap economists have long pointed to as one of the most telling indicators of where the two economies are headed.
Exports: The Widest Gap of All
This is where the comparison turns stark.
Pakistan’s overall exports actually fell 7.14% to Rs6,393 billion during July-March of FY2025-26, compared with the same period last year, according to the Pakistan Bureau of Statistics, even as imports rose nearly 8%.
On textiles, often billed as Pakistan’s flagship export sector, the country’s exports reached $17.88 billion for the full FY2025, a 7.39% rise but still short of the $19.3 billion record set in FY2022.
Bangladesh’s garment sector alone dwarfs this. In FY2024-25, Bangladesh exported $39.35 billion worth of garments, up 9% from the previous year, with the garment industry accounting for around 81.5% of the country’s total export earnings. In the first four months of FY2025-26 alone, Bangladesh’s apparel exports stood at $12.99 billion, up 1.40% year-on-year.
In global rankings, the gap is equally telling. Bangladesh ranked among the world’s top garment exporters with $2.79 billion in H1 2025, while Pakistan trailed at $1.37 billion in the same period, according to TradeInt’s global textile and garment export database.
A recent analysis in Dawn summed up the structural problem. Pakistan’s export base remains narrow and concentrated in low-value textile segments such as yarn, fabric, and basic garments, areas with thin margins and intense competition, with some firms even exiting higher value-added apparel altogether. By contrast, Bangladesh invested in scale, compliance, and female labour participation to climb the garment value chain, while Vietnam diversified into electronics, engineering, and services.
Adding to the irony, trade data shows Pakistan’s exports to Bangladesh itself declined to $180.1 million in the first quarter of FY2025-26, even as Bangladesh continues importing fabric from Pakistan, China, and India to meet its flat-fabric needs.
Where Pakistan Holds an Edge
Pakistan’s economic survey did flag some bright spots. The country’s IT and technology exports reached $3.8 billion during July-April, with freelancer exports nearing $959 million. Remittances also hit a record $33.9 billion during July-May, with foreign exchange reserves climbing to around $17.1 billion, a 49% annual increase.
Inflation, too, has eased significantly, averaging 6.7% during July-May, compared to the double-digit and near-30% levels Pakistan saw in recent years.
The Bigger Picture
Bangladesh’s own economists are not celebrating blindly. Selim Raihan of the South Asian Network on Economic Modeling warned that achieving 6.5% growth alongside 7.5% inflation may prove difficult, noting the budget itself acknowledges weak growth, high inflation, tight credit conditions, banking-sector stress, energy uncertainty and fragile private investment.
Still, the comparison leaves little room for comfort on Pakistan’s side. A larger GDP, a record-breaking headline figure, and yet an export base that remains a fraction of what a smaller neighbour generates from garments alone, a sector Pakistan once dominated regionally.
The two economies, sitting side by side on the map, appear to be writing very different stories about where South Asia’s export future is headed.
