Slide 1: - Introduction - Bangladesh and Pakistan adopted divergent development trajectories despite similar starting points in 1971 - Bangladesh has made impressive progress in economic and social development indicators - This study analyzes the factors behind Bangladesh's rapid growth and identifies challenges faced by Pakistan - It suggests measures Pakistan can take drawing on Bangladesh's successful policies and development model Slide 2: - Comparative Economic Indicators - Bangladesh's exports reached $52 billion in 2021-22, 60% higher than Pakistan's $32 billion exports - For 2022-23, Bangladesh aims for $67 billion exports, while Pakistan set a $38 billion target unlikely to be achieved - Pakistan's exports are declining and likely to fall short of its target due to economic crisis and loss of competitiveness - Bangladesh forex reserves stand at $30 billion, 7.5 times more than Pakistan's reserves of $4 billion Slide 3: - Budgets and Growth - Bangladesh GDP grew at 6% in 2021-22, while Pakistan faced stagflation and economic turmoil - Per capita income in Bangladesh is $2765, 76% higher than Pakistan's per capita income of $1568 - Bangladesh announced a $71 billion budget for 2022-23 focused on the knowledge economy and agriculture - Pakistan's PSDP budget is just Rs950 billion, as it grapples with financial constraints and inflationary pressures Slide 4: - Bangladesh’s Export Promotion Policies - EPB provided policy support and promoted exports, boosting shipments of readymade garments - EPZs attracted foreign investment into the garments sector, now Bangladesh's top export - Preferential access to the EU, US markets fueled export-oriented growth - Investments in ports, roads, power enabled the expansion of export-oriented industries - Strategic focus on export-led industrialization transformed Bangladesh into a major exporter Slide 5: - Rural and Agricultural Development - Bangladesh quadrupled its rural road network from 1988-1997, linking villages to cities and markets - Productivity gains by expanding HYV seeds and irrigation enabled growth in agriculture - Liberalizing telecoms expanded internet access, digital connectivity, and financial inclusion - Garment jobs and microfinance drove women's empowerment and economic participation - Investments in health, education and skills developed Bangladesh's human capital Slide 6: - Role of International Partners - IDA provides significant interest-free loans, making Bangladesh the top recipient of IDA funds - The World Bank sees Bangladesh as a development success story and key development partner - Aid focused on roads, power, climate action to build infrastructure and drive economic growth - Partnership model between government, donors, NGOs was central to development progress - Grameen Bank pioneered an innovative grassroots microfinance model reaching millions Slide 7: - Role of Civil Society Institutions - Grameen Bank provided small collateral-free loans to rural women entrepreneurs - It focused financial services on alleviating poverty and empowering the marginalized - Group lending model enabled peer support and high repayment rates - Microfinance combined with healthcare, education and empowerment programs - This participatory model was pivotal to Bangladesh's poverty reduction Slide 8: - Bangladesh Vision 2041 and Beyond - Vision 2041 aims to make Bangladesh a developed nation by 2041 through inclusive, sustainable growth - The Perspective Plan outlines strategies for governance, decentralization, and capacity building - Bangladesh adopted a people-centric model focused on participatory, inclusive development - Smart Bangladesh leverages technology across sectors to boost innovation and growth - Digital Bangladesh expanded digital infrastructure, skills and tech enabled services Slide 9: - Smart Bangladesh Initiatives - Expanding broadband access including in rural areas to boost digital connectivity - Promoting digital literacy and IT skills development among students and workforce - Government is encouraging use of ICT and digital solutions in healthcare, education, agriculture etc. - Building smart cities/villages by deploying smart energy, transport, waste management systems - Establishing high-tech industrial parks and R&D initiatives to foster innovation ecosystem - Supporting startups, new technologies and entrepreneurship across sectors Slide 10: - Issues and Challenges - Pakistan - Governance instability and inconsistent economic policies hampered growth - Pakistan has low levels of domestic savings and investments, hurting growth - Narrow industrial base and weak export competitiveness led to BoP pressures - Poor trade regulations and business environment constrained private sector - Energy shortages and infrastructure gaps affected productivity and exports - Lack of policy continuity undermined investor confidence and reforms Slide 11: - Economic Crisis and External Pressures - Pakistan faces slowing growth, rising inflation, falling forex reserves signaling economic crisis - Floods devastated agriculture, wiped out jobs and disrupted supply chains and production - Import restrictions, high fuel costs adversely impacted industrial activity - Heavy external borrowing at high cost to finance deficits now a debt sustainability concern - Currency devaluation fueled imported inflation, further worsening living standards - National security challenges have diverted resources from economic development Slide 12: - Progress on Key Indicators - Bangladesh strategically diversified its export basket beyond readymade garments - Pakistan struggled to expand its exports beyond traditional sectors like textiles - Bangladesh steadily improved its ease of doing business ranking through reforms - Pakistan lagged regional peers in regulatory reforms and business climate - Bangladesh enabled greater female participation in the workforce and microfinance - An open, secular socio-political environment supported Bangladesh's advancement Slide 13: - Human Capital Development - Pakistan ranks low at 161 in UN's Human Development Index, reflecting weak outcomes - Bangladesh prioritized healthcare access, education, and skills training for its young population - It enabled greater female workforce participation compared to Pakistan - Pakistan's progress lagged across health, education and gender empowerment - Inadequate investments in education, healthcare constrained human capital growth - Neglect of human capital was a key limitation in Pakistan's model Slide 14: - Infrastructure and Governance - Bangladesh invested in ports, roads, power generation to address infrastructure gaps - Chronic electricity shortages, connectivity issues constrain Pakistan's competitiveness - Policy continuity and long term planning benefited Bangladesh - Frequent policy reversals created uncertainty, hurting private investment in Pakistan - Weak governance and institutional capacity hampered reform implementation - Lack of policy consensus and short-term thinking hurt Pakistan Slide 15: - Recommendations - Partnerships, Reforms - Public-private partnerships in infrastructure and service delivery can improve efficiency - Streamlining regulations, taxation and business procedures essential to boost private investment - Financial and structural reforms to expand access to credit, develop capital markets - Support export diversification into knowledge economy sectors beyond traditional exports - Regional connectivity and trade opening to be prioritized to access larger markets - Partnership between government and private sector key for technology adoption Slide 16: - Recommendations - Skill Development, FDI - Direct focus on skill development programs to enhance workforce competitiveness - Provide targeted incentives and support to expand SME sector - Scaling up power generation and distribution, port infrastructure, transport links - Reform investment policies, reduce barriers to attract more FDI - Expand female economic participation through skills training, microfinance etc - Leverage overseas diaspora and technology transfer through FDI Slide 17: - Recommendations - Economic Growth, Demography - Make sustainable, inclusive economic growth the number one national priority - Effective design and implementation of policies equally important - Invest in healthcare, education and skills to develop human capital - Leverage young population through supportive policies on jobs, skilling etc - Position Pakistan as a regional trade, transit and logistics hub - Adopt cohesive long term economic vision focused on export competitiveness Slide 18: - Bangladesh's Development Model - Bangladesh combined elements of state direction with market orientation - Pragmatic policies drove export-oriented manufacturing and growth - Political consensus and policy continuity across regimes was pivotal - Long term development vision centered on economic and social advancement - Social objectives progressed in tandem with economic goals - Stable governance enabled strong institutional capacity Slide 19: - Conclusion - Learning from Bangladesh - Pakistan must also prioritize economic growth in its policy objectives - Leadership needs to build consensus on development priorities - Allocate resources efficiently to uplift health, education and living standards - Strengthen regional connectivity and trade cooperation - Bangladesh offers relevant lessons for Pakistan on economic model Slide 20: - Bangladesh’s Transformation - Bangladesh transformed from an impoverished nation at inception to leading apparel exporter - Readymade garments exports fueled its industrialization and growth - Inclusive financial services empowered marginalized sections and micro-entrepreneurs - Strategic policy visions aim to attain middle income status - Digital Bangladesh increased IT exports, digitization, skills and opportunities - Prudent policies enabled effective poverty alleviation Slide 21: - Pakistan's Constraints to Growth - Governance challenges and unstable policies constrained Pakistan’s potential - Energy shortages and infrastructure gaps limited industrial competitiveness - Weak export competitiveness led to repeated BoP crises and external debt burdens - Progress lagged in key social indicators like female empowerment, poverty rates - National security priorities diverted resources from economic and social development - Inward-oriented policies failed to boost export competitiveness and growth Slide 22: - Conclusion - Importance of Continuity - Bangladesh combined demographic strengths with prudent, stable policies - Pakistan must also make economic revival the foremost policy priority - Balance between policy formulation and effective implementation is essential - Piecemeal reforms must give way to an integrated, long term strategy - Lessons to learn from Bangladesh's development model - Economic progress requires stability, continuity and policy consensus Slide 23: - Leveraging Demographic Dividend - Leverage Pakistan's young population through supportive policies on health, education, jobs - Export-led growth crucial to expand forex earnings and stability - Proactively pursue regional connectivity and trade agreements - Foster innovation ecosystem through investments in R&D, technology commercialization - Level playing field for business vital - needs competition reforms - Optimize demographic dividend through human capital development Slide 24: - Inclusive Development - Infrastructure expansion enhances connectivity, market access, mobility - Financial inclusion and access to affordable credit enables growth - Prioritize skill development and vocational training programs - Provide incentives to support SME sector growth - Reform regulations to improve ease of doing business rankings - Combine economic growth with human development and social inclusion Slide 25: - Conclusion - Significance of Pragmatism - Policy consistency and continuity over long horizons vital to foster confidence - Stability and incremental improvement yields results over time - Pragmatic, growth-first mindset needed instead of radical ideologically driven reforms - Gradual evidence based reforms suited to country context better than big bang approach - Bangladesh demonstrates effectiveness of prudent, stable policies - Governance capabilities determine success of policy initiatives Slide 26: - Political Stability - Political instability and abrupt policy changes hurt investor confidence - Good governance must accompany liberalization for successful outcomes - Improved cooperation and coordination between institutions needed - Invest in bureaucratic and institutional capacity building - Inclusive development in Bangladesh via participatory approach - Partnership between public, private sector and civil society key Slide 27: - Prudent Resource Utilization - Bangladesh effectively utilized external aid, loans for development - Pakistan must optimize utilization of restricted fiscal resources - Developmental mindset should override narrow interest group demands - Lessons from Bangladesh on governance capabilities, institutions - Higher investments in human capital, infrastructure needed - Incremental reforms aligned with local realities yield results Slide 28: - Private Sector Competitiveness - Sharpen export competitiveness to perform in globalized economy - Diversify export basket, move up value chain beyond commodities - Scale up power, transport, port infrastructure to reduce business costs - Incentivize innovation, R&D, technology adoption by firms - Easy access to affordable credit for SMEs enables entrepreneurship - Vibrant, competitive private sector central to growth strategy Slide 29: - Technology and Innovation - Achieving energy security critical for Pakistan's industrial development - Integrate with regional value chains to access larger markets - Promote technology absorption to boost productivity - Facilitate startups and new technology business models - Partnership between academia, industry and government institutions - Foster technology ecosystem and commercialization Slide 30: - Leveraging Young Population - Leverage Pakistan's young population through supportive policies - Prioritize skills development, technical and vocational training - Increase female workforce participation through social change - Expand access to microcredit for enabling entrepreneurship - Invest in emerging technologies like renewables, AI etc. - Focus on human capital to harness demographic dividend Slide 31: - Inclusive Growth - Economic growth fundamental for uplifting living standards - Combine market orientation with investments in social sectors - Pakistan must expand its reform agenda to cover health, education etc. - Economic growth and human development should be twin objectives - Prudent policies that yielded growth in Bangladesh can be replicated - Inclusive development model entails progress across social indicators Slide 32: - Partnership Model - Policy consistency and political stability enables planning - Bangladesh progressed through collaboration between stakeholders - Pakistan also needs participatory model engaging all stakeholders - Leverage technology and innovation for development - Partnership between institutions, private sector for reform implementation - Cooperation, consensus vital for economic turnaround Slide 33: - Regional Connectivity - Regional integration enables trade, investment, connectivity - Productivity growth through technology adoption vital for competitiveness - Leverage strategic location to become trade, transport and logistics hub - Collaboration between government institutions, private sector required - Development predicated on partnerships between stakeholders - Knowledge diffusion and coordination between actors Slide 34: - Conclusion - Learning from Bangladesh - Bangladesh offers useful blueprint for economic advancement - Pakistan must learn from Bangladesh's policy successes - Pragmatism and economic growth central to development - Effective policy execution as important as formulation - Development requires stability, continuity and consensus - Bangladesh combines prudence with people-centric approach Slide 35: - Conclusion - The Way Forward - Bangladesh leveraged demography, pragmatic policies for growth - Its progress has important lessons for Pakistan - Make economic growth topmost national priority - Policy stability, continuity and consensus are vital - Bangladesh provides relevant developmental template - Bangladesh model offers blueprint for emulation
