New Delhi, Feb 5 (NationPress) The economy of Pakistan has been embroiled in crisis for several years, while India, frequently referenced in discussions within Pakistan, has notably advanced to become the world's fastest-growing major economy, as detailed in a recent report.

An article from media outlet Amu.TV indicates that post-Covid, the two neighboring economies have diverged significantly. In 2022, Pakistan experienced a temporary rebound with around 6 percent GDP growth, but this recovery was short-lived.

By 2023, the nation's economy had nearly stagnated, with the IMF predicting a mere 0.5 percent growth. Conversely, India maintained a solid growth trajectory of over 6 percent, distinguishing itself as the “bright spot” in the global economy.

The article also underscores that Pakistan’s economic difficulties are being recognized even within its own leadership. During a business event in Islamabad, Lt-Gen Sarfraz Ahmed, the national coordinator of the Special Investment Facilitation Council (SIFC), candidly remarked that Pakistan lacked a coherent growth strategy and that its fiscal management had been severely inadequate.

A prominent indicator of Pakistan’s economic turmoil has been inflation, which soared to 37.97 percent between 2022 and 2023—the highest rate in three decades—resulting in a severe cost of living crisis for many. This rampant inflation has significantly impacted ordinary citizens, as their wages have failed to keep pace with soaring prices, as the article highlights.

The World Bank reports that the price surge has pushed an additional 13 million individuals in Pakistan into poverty. Coupled with a high unemployment rate, the poverty level in Pakistan has increased from 21.9 percent to 25.3 percent by 2023-2024, meaning approximately one in four citizens now lives below the poverty line. Under a higher global poverty standard, nearly 45 percent of Pakistan's population may be classified as poor, as further noted in the article.

While India also contended with inflation during this period, it was at a significantly lower rate, primarily influenced by global oil and supply chain issues, yet far from Pakistan’s inflation levels.

By 2023, India’s inflation rate had decreased to around 5-6 percent and fell further in 2024. By late 2023, India’s retail inflation dipped below 5 percent following effective management of food prices. In stark contrast, the average consumer in Pakistan faces price hikes five times greater than those encountered by an average consumer in India, the article states.

Regarding poverty, the World Bank has found that the percentage of individuals in India living on less than 4 US dollars daily—an international extreme poverty benchmark—has plummeted from 16 percent to just 2.3 percent by 2023, as the article concludes.