Pakistan's deepening economic troubles stem not from a shortage of resources or skilled people, but from decades of political dysfunction, weak institutional frameworks, and fiscal mismanagement — a cautionary tale that Bangladesh would do well to study closely, according to a recent analysis published in leading Bangladeshi newspaper Daily Sun.

The report arrives as Islamabad pursues a sweeping reform agenda, with the World Bank's ten-year partnership framework for Pakistan calling for structural changes across fiscal policy, the energy sector, and the broader business environment.

Bangladesh's Economic Journey Since 1971

The Daily Sun analysis draws a sharp contrast between the two nations' trajectories since Bangladesh's independence. 'Bangladesh's economic journey since 1971 is perhaps the strongest rebuttal to the pessimism that once surrounded the new nation. Emerging from a devastating war, widespread poverty and the legacy of economic inequality under the hegemony of Pakistan, Bangladesh chose to invest in its people, empower women, expand exports and build resilience,' the report stated.

More than five decades on, the former East Pakistan has not merely survived — it has, according to the report, 'surpassed Pakistan on several important economic and social indicators.' That achievement, the analysis warns, 'carries a warning: Bangladesh must not allow the pursuit of military or geopolitical strength to overshadow the economic foundations of national power.' Crucially, the report cautions Bangladesh not to 'mistake the symbols of power for the foundations of power.'

Pakistan's Fiscal Crisis and Reform Push

Pakistan's Senate Functional Committee on Devolution, chaired by Senator Zamir Hussain Ghumro, has recommended shutting down approximately two dozen federal ministries and departments. The list reportedly includes health, education, national food security, water resources, climate change, housing, planning and development, industries, and petroleum.

The committee has argued that federal spending, which has climbed to Pakistani Rs 19 trillion, must be reduced to Rs 13 trillion, with several responsibilities devolved to the provinces. The World Bank has separately assessed that Pakistan's development has been hindered for decades by 'policy and institutional weaknesses', with periods of growth repeatedly followed by rising debt, trade imbalances, and painful economic adjustments.

Military Spending Under Scrutiny

According to the Stockholm International Peace Research Institute (SIPRI), Pakistan's military expenditure rose 11% in 2025 to $11.9 billion, driven largely by procurement of new aircraft and missiles. The Daily Sun report raises a pointed question in this context: 'When a country faces crushing debt-service costs and weak public revenues, it is legitimate to ask whether national security is being defined too narrowly through military capability while economic security receives insufficient attention.'

The Lesson for Bangladesh

The report's core argument is that economic security and military capability must not be treated as interchangeable. Bangladesh's gains — built on garment exports, women's empowerment, and social investment — represent a model of national power that is harder to sustain if diverted toward geopolitical ambition. This comes amid a broader regional debate about the trade-offs between defence spending and human development in South Asia.

As Pakistan works through its reform programme with multilateral support, analysts will be watching whether Dhaka's policymakers draw the right lessons from Islamabad's difficult decade.