Why Pakistan’s Economy Keeps Falling Behind India’s (And What They Can Learn)

I’ve talked to small business owners in both countries. And here’s what they all say: “Things are getting expensive, but at least in India, I can still find work.”

That one line sums up the whole story.

Pakistan’s economy isn’t bad because people don’t work hard. Go to Sialkot or Faisalabad, and you’ll see some of the hardest working people on the planet. The problem is the system. Energy shortages, currency that keeps dropping in value, and loans that never seem to end.

In the last five years, the Pakistani rupee lost more than half its value against the dollar. India’s rupee fell too, but much slower. That means when Pakistan imports oil or machinery, they pay way more. And guess who pays in the end? You and me.

Another thing nobody talks about: remittances. Pakistan gets billions from workers in the Gulf. India gets even more from the US, UK, and Gulf combined. But India also makes things. Pakistan still imports everything from tea to mobile phones.

What can Pakistan learn? First, stop relying on loans to look rich. Second, make it easier to start a business. In India, digital payments and cheap internet changed everything. Pakistan has the talent. They just need the guts to fix the basics.

Will it happen? Honestly, not until there’s political stability. But if they ever get that right, don’t count them out.