No surprises here. The GDP figures that you see so often being quoted are what? They are the recorded size of a economy divided by population. The operative word being
'recorded'. Pakistan has one of largest unrecorded economies in the world. Therefore what you see with the official figures are incorrect. It's like a iceberg. You only see what's above the water.
This can best illustrated by using the iceberg analogy - below.
Just because you don't register the mass of the iceberg below the waterline does not mean it does not exist. It is there. It is real. This phenomenon exists in every country. All countries including for example United Kingdom has shadow economy. However what is significant about Pakistan is the size, the proportion, which is significantly larger than other countries like India for example. The result is the true GDP for Pakistan is far higher.
You might ask does it matter? Yes, it does because it feeds real people, with real housing. That is why Pakistan does not have millions of destitute sleeping on pavements, or millions pulling rickshaws like animals just to eke a miserable living. Any visitor can see that in Pakistan in particular when they visit both countries. Don't get me wrong I thing Pakistan also has 'Ganga hungry' in certain districts in Sindh for example. However the scale in India is staggering. Entire swathes of some states are 'Ganga hungry'.
That said and before Pakistani's expand their chests some sobering up is in order. The only and I repeat the only reason Pakistan has fared better despite India shining with it's industries is simple. Pakistan has mass exported workers abroad. Just look at the size of Pakistani diaspora in the West. All those ex pat Pakistani's who number less then Indians in absolute numbers but if you take into account the relative populations far greater percentage of Pakistani's are working abroad.
The result of this is huge direct remittances which are the largest industry in Pakistan. I believe the recorded figure exceeed $20 billion last year. Don't forget this is net 'profit' to Pakistan. Can somebody tell me what other industry even comes close to making that amount? Non.
Then you have the remittances transeferred by unofficial means. You also must include the trickle effects of diaspora. Like we all use airlines, custom duties, airports, taxis and go build houses in Pakistan or give poor relatives financial support. The aggregate effect of this on Pakistan economy is probably greater than TATA, Birla, Reliance group in India combined. There could be 10 employed directly or indirectly for every foreign ex-pat/worker inside Pakistan.
However Pakistan can't keep on living off this manpower export industry forever. Population in Pakistan is increasing and those regions which used to absob Pakistan migrants are tightening borders. This gravy train can't go on forever.
*In short India's garbage is starving away, shitting in the open streets while their equivalent in Pakistan have migrated to Europe, America or have jobs in Middle East. This might explain why India has good reputation because it's garbage is hidden away in the Ganga swamps whereas Pakistani garbage is sat in Luton or Middle East and on show to the world.
