Pakistan’s economic landscape is struggling to breathe as the nation has recently secured its 24th bailout from the International Monetary Fund (IMF) since 1958. Despite this financial assistance, persistent challenges remain, leaving the country’s core growth in a precarious state. A noteworthy observation is that the GDP of several Indian states, particularly Maharashtra and Tamil Nadu, has now eclipsed that of Pakistan.
India’s Economic Growth Outpaces Pakistan
As per the latest IMF statistics, Pakistan’s economy has experienced a modest growth rate of 2.6%, culminating in a GDP of approximately $373.08 billion. However, ongoing issues such as political turmoil, soaring inflation, and a fragile balance of payments are hindering substantial progress.
- Current GDP of Pakistan: $373.08 billion
- Growth Rate: 2.6%
On the other hand, India’s economic prowess is becoming increasingly apparent, with its GDP nearing ten times that of Pakistan. Forecasts indicate that India’s real GDP growth rate for 2025 will be approximately 6.4%, pushing its GDP past the $4 trillion mark.
Maharashtra and Tamil Nadu: Economic Powerhouses
The economic strength of Maharashtra and Tamil Nadu is particularly noteworthy, as their respective Gross State Domestic Products (GSDP) now exceed that of Pakistan.
- Maharashtra’s GSDP: ₹42.67 lakh crore
- Tamil Nadu’s GSDP: ₹31.55 lakh crore
Both states serve as industrial and automotive hubs, benefiting significantly from India’s emphasis on ‘Make in India’, which has propelled their economic growth.
Pakistan’s Defence Spending Amid Economic Struggles
Despite facing severe economic hurdles, Pakistan continues to allocate substantial resources to its defence sector. For the fiscal year 2025, the country’s defence budget has risen by 16.4%, amounting to approximately $7.37 billion (around ₹60,655 crore). This increase is particularly significant given that foreign debt constitutes nearly 42% of Pakistan’s GDP.
- Defence Budget for FY25: $7.37 billion
- Foreign Debt: 42% of GDP
Interestingly, 82% of Pakistan’s military imports from 2019 to 2023 originated from China, underscoring the close defence partnership between these two nations.
Comparison with India and China
In stark contrast, India has dedicated $81.72 billion (approximately ₹6.72 lakh crore) to its defence budget for FY26, reflecting a 4.7% increase from the prior year. Meanwhile, China has also ramped up its military spending, which now exceeds $245 billion (around ₹20.16 trillion), as the nation continues to focus on modernizing its armed forces.
- India’s Defence Budget for FY26: $81.72 billion
- China’s Defence Budget: Over $245 billion
As these economic dynamics unfold, Pakistan’s struggle to maintain growth while investing heavily in defence raises critical questions about its future trajectory. The ongoing developments in both India and China are likely to play a pivotal role in shaping the regional landscape in the coming years.
