Pakistan and Bangladesh share historical roots, language, and culture, having been one nation until 1971. Both countries began as agrarian economies with similar challenges of poverty, illiteracy, and political instability. However, their trajectories diverged sharply after Bangladesh’s independence. For instance, in 1971, Pakistan’s GDP was $10.67 billion, surpassing Bangladesh’s $8.75 billion. By 2000, Pakistan led with $99.48 billion, but Bangladesh’s consistent growth closed the gap. By 2017, Bangladesh reached $293.73 billion, nearing Pakistan’s $339.21 billion, and by 2023, Bangladesh surged ahead with $437.42 billion against Pakistan’s $337.91 billion. Bangladesh’s average GDP growth rate of was 6.48 percent over the last decade outpaces Pakistan’s 3.80 percent, reflecting stronger economic progress. In 2015, both Bangladesh and Pakistan entered the lower-middle-income category by surpassing the $1,136 GNI per capita threshold under the World Bank Atlas method. By 2021, Bangladesh’s GNI per capita soared to $2,567, while Pakistan lagged behind at $1,363. With Bangladesh’s impressive economic momentum, it is poised to reach the $4,466 upper-middle-income threshold far earlier than Pakistan. Bangladesh’s economic success is a testament to the power of strategic planning and focused development. Driven by export-led growth, the country’s thriving garment industry, which contributes over 80 percent of total exports, has become a cornerstone of its economy, boosting employment and income across the nation. This success is underpinned by a stable macroeconomic environment, with controlled inflation and a steady exchange rate creating a favorable climate for investment and growth. Increased female labour participation and slower population growth have further strengthened sustainable development, forming a robust economic foundation. Bangladesh has surpassed Pakistan in export of goods and services over the years. In 2000, Pakistan’s exports of goods and services stood at $9.58 billion, marginally ahead of Bangladesh’s $6.59 billion. However, by 2023, Bangladesh’s exports soared to $57.55 billion, leaving Pakistan, which grew to $35.41 billion, significantly behind. In terms of exports of goods and service as a percentage of GDP, Bangladesh has consistently outpaced Pakistan over the years. Bangladesh’s export percentage of GDP peaked at an impressive 20.16 percent in 2012, with a low of 10.44 percent in 2020, maintaining an average of 14.78 percent over the period. In contrast, Pakistan’s export percentage peaked at 13.48 percent in 2011, dipped to a minimum of 8.22 percent in 2017, and averaged 10.89 percent – a performance that underscores Pakistan’s slower and less steady growth. This remarkable trajectory highlights the effectiveness of Bangladesh’s policies and its ability to leverage its resources to achieve consistent and sustainable growth. Through a combination of export-driven initiatives, macroeconomic stability, and inclusive workforce participation, Bangladesh has emerged as a success story in the region. Bangladesh’s economic stability highlights its effective policies and resilience. From 2000 to 2023, it maintained an average annual inflation rate of 6.49 percent, significantly lower than Pakistan’s 9.38 percent. The Taka depreciated moderately from 52.14 to 106.31 per USD, a 104 percent total depreciation at 4.5 percent annually, while Pakistan’s Rupee weakened sharply from 53.65 to 280.36 per USD, a 422 percent depreciation at 7.45 percent annually. Bangladesh’s disciplined macroeconomic management contrasts with Pakistan’s challenges of inflation and currency instability, showcasing the importance of strategic governance in shaping economic outcomes. Bangladesh’s economic progress is deeply tied to its success in empowering women, particularly through its thriving export-oriented garment industry, where women form the backbone of the workforce. This integration has significantly boosted female labour force participation, rising from 23.56 percent in 2000 to 32.95 percent in 2023. In contrast, Pakistan’s progress has been slower, constrained by societal and economic barriers, with participation increasing from 15.47 percent to 22.91 percent over the same period. Bangladesh’s consistent outperformance underscores the transformative impact of inclusive economic policies. In 1980, Bangladesh’s population of 88.02 million slightly exceeded Pakistan’s 82.29 million. However, by 1987, Pakistan, with faster growth, surpassed Bangladesh, reaching 105.13 million compared to 104.96 million. By 2023, Pakistan’s population had surged to 247.50 million, far outpacing Bangladesh’s 171.47 million. Pakistan’s annual population growth rate of 2.63 percent, compared to Bangladesh’s 1.58 percent, reflects significant challenges in managing resources, employment, and social services. In contrast, Bangladesh’s controlled growth highlights the success of its more effective socio-economic policies and planning. Pakistan should focus on export diversification and strengthening labour-intensive industries like textiles. Stable macroeconomic policies are crucial, including controlling inflation and stabilizing the exchange rate to attract investment. Empowering women through workforce integration, particularly in export-oriented sectors, can boost productivity and income. Additionally, implementing population management strategies to rationalize growth will ease pressure on resources and improve social service delivery. Finally, fostering an enabling environment for businesses through infrastructure development, trade facilitation, and targeted subsidies for key industries can drive sustainable growth and improve Pakistan’s economic trajectory. The writer is a Lahore-based economist working at the Centre of Economic Planning and Development, Minhaj University.