Story perspectives

Pakistan's Economy Plummets as India's Thrives Amid Instability

2/5/2026

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Summary

Story summary

Pakistan's economy slowed in 2023, with GDP growth at 0.5% and inflation at 37.97%.
Inflation pushed about 13 million people into poverty, raising the poverty rate to 25.3%.
India’s economy expanded in 2023, with GDP growth at 6.1%, inflation around 5–6%, and unemployment at 3.2%.
Governance differences shaped outcomes, as Pakistan faced political instability and a caretaker government, while Prime Minister Narendra Modi's leadership fostered investor confidence and stable policies.

History

Historical Context

The Partition of India in 1947, resulting from the Indian Independence Act, created Pakistan and India, leading to mass migrations and violence that displaced approximately 14-18 million people. Since then, Pakistan has struggled economically, with a GDP growth of only 0.5% in 2023, contrasting sharply with India's 6.1%, highlighting ongoing disparities in governance and poverty, which reached 25.3% in Pakistan.

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Story summary

Pakistan's economy slowed in 2023, with GDP growth at 0.5% and inflation at 37.97%.
Inflation pushed about 13 million people into poverty, raising the poverty rate to 25.3%.
India’s economy expanded in 2023, with GDP growth at 6.1%, inflation around 5–6%, and unemployment at 3.2%.
Governance differences shaped outcomes, as Pakistan faced political instability and a caretaker government, while Prime Minister Narendra Modi's leadership fostered investor confidence and stable policies.

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