Bangladesh vs. Pakistan

The huge delta region formed at the confluence of the Ganges and Brahmaputra River systems - now referred to as Bangladesh - was a loosely incorporated outpost of various empires centered on the Gangetic plain for much of the first millennium A.D. Muslim conversions and settlement in the region began in the 10th century, primarily from Arab and Persian traders and preachers. Europeans established trading posts in the area in the 16th century. Eventually the area known as Bengal, primarily Hindu in the western section and mostly Muslim in the eastern half, became part of British India. Partition in 1947 resulted in an eastern wing of Pakistan in the Muslim-majority area, which became East Pakistan. Calls for greater autonomy and animosity between the eastern and western wings of Pakistan led to a Bengali independence movement. That movement, led by the Awami League (AL) and supported by India, won the independence war for Bangladesh in 1971.

The post-independence AL government faced daunting challenges and in 1975 it was overthrown by the military, triggering a series of military coups that resulted in a military-backed government and subsequent creation of the Bangladesh Nationalist Party (BNP) in 1978. That government also ended in a coup in 1981, followed by military-backed rule until democratic elections occurred in 1991. The BNP and AL have alternated in power since 1991, with the exception of a military-backed, emergency caretaker regime that suspended parliamentary elections planned for January 2007 in an effort to reform the political system and root out corruption. That government returned the country to fully democratic rule in December 2008 with the election of the AL and Prime Minister Sheikh HASINA. In January 2014, the incumbent AL won the national election by an overwhelming majority after the BNP boycotted the election, which extended HASINA's term as prime minister. In December 2018, HASINA secured a third consecutive term (fourth overall) with the AL coalition securing 96% of available seats, amid widespread claims of election irregularities. With the help of international development assistance, Bangladesh has reduced the poverty rate from over half of the population to less than a third, achieved Millennium Development Goals for maternal and child health, and made great progress in food security since independence. The economy has grown at an annual average of about 6% for the last two decades and the country reached World Bank lower-middle income status in 2014.

The Indus Valley civilization, one of the oldest in the world and dating back at least 5,000 years, spread over much of what is presently Pakistan. During the second millennium B.C., remnants of this culture fused with the migrating Indo-Aryan peoples. The area underwent successive invasions in subsequent centuries from the Persians, Greeks, Scythians, Arabs (who brought Islam), Afghans, and Turks. The Mughal Empire flourished in the 16th and 17th centuries; the British came to dominate the region in the 18th century. The separation in 1947 of British India into the Muslim state of Pakistan (with West and East sections) and largely Hindu India was never satisfactorily resolved, and India and Pakistan fought two wars and a limited conflict - in 1947-48, 1965, and 1999 respectively - over the disputed Kashmir territory. A third war between these countries in 1971 - in which India assisted an indigenous movement reacting to the marginalization of Bengalis in Pakistani politics - resulted in East Pakistan becoming the separate nation of Bangladesh.

In response to Indian nuclear weapons testing, Pakistan conducted its own tests in mid-1998. India-Pakistan relations improved in the mid-2000s but have been rocky since the November 2008 Mumbai attacks and have been further strained by attacks in India by militants believed to be based in Pakistan. Imran KHAN took office as prime minister in 2018 after the Pakistan Tehreek-e-Insaaf (PTI) party won a plurality of seats in the July 2018 general elections. Pakistan has been engaged in a decades-long armed conflict with militant groups that target government institutions and civilians, including the Tehreek-e-Taliban Pakistan (TTP) and other militant networks.

Bangladesh's economy has grown roughly 6% per year since 2005 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.

Garments, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports in FY 2016-17. The industrial sector continues to grow, despite the need for improvements in factory safety conditions. Steady export growth in the garment sector, combined with $13 billion in remittances from overseas Bangladeshis, contributed to Bangladesh's rising foreign exchange reserves in FY 2016-17. Recent improvements to energy infrastructure, including the start of liquefied natural gas imports in 2018, represent a major step forward in resolving a key growth bottleneck.

Decades of internal political disputes and low levels of foreign investment have led to underdevelopment in Pakistan. Pakistan has a large English-speaking population, with English-language skills less prevalent outside urban centers. Despite some progress in recent years in both security and energy, a challenging security environment, electricity shortages, and a burdensome investment climate have traditionally deterred investors. Agriculture accounts for one-fifth of output and two-fifths of employment. Textiles and apparel account for more than half of Pakistan's export earnings; Pakistan's failure to diversify its exports has left the country vulnerable to shifts in world demand. Pakistan's GDP growth has gradually increased since 2012, and was 5.3% in 2017. Official unemployment was 6% in 2017, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Human development continues to lag behind most of the region.

In 2013, Pakistan embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. The program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. The Pakistani rupee has remained relatively stable against the US dollar since 2015, though it declined about 10% between November 2017 and March 2018. Balance of payments concerns have reemerged, however, as a result of a significant increase in imports and weak export and remittance growth.

Pakistan must continue to address several longstanding issues, including expanding investment in education, healthcare, and sanitation; adapting to the effects of climate change and natural disasters; improving the country's business environment; and widening the country's tax base. Given demographic challenges, Pakistan's leadership will be pressed to implement economic reforms, promote further development of the energy sector, and attract foreign investment to support sufficient economic growth necessary to employ its growing and rapidly urbanizing population, much of which is under the age of 25.

In an effort to boost development, Pakistan and China are implementing the "China-Pakistan Economic Corridor" (CPEC) with $60 billion in investments targeted towards energy and other infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have raised IMF concern about Pakistan's capital outflows and external financing needs over the medium term.

Bangladesh's economic constraints hinder network infrastructure, resulting in the lowest fixed-line penetration rate in South Asia and a very low fixed broadband rate; most consumers utilize mobile broadband for data on LTE networks but rates are still well below that of most other Asian countries; the government approved a modernization project to support investment and prepare for 5G launches; 2020 test of 5G technology in Dhaka; government directive allows IoT for smart buildings and automation industries; government project aims to provide network to services and schools; importer of broadcasting equipment from China  (2021)

Pakistan's telecom market recently transitioned from a regulated state-owned monopoly to a deregulated competitive structure, now aided by foreign investment; moderate growth over the last six years, supported by a young population and a rising use of mobile services; telecom infrastructure is improving, with investments in mobile-cellular networks, fixed-line subscriptions declining; system consists of microwave radio relay, coaxial cable, fiber-optic cable, cellular, and satellite networks; 4G mobile services broadly available; 5G tests ongoing; data centers in major cities; mobile and broadband doing well and dominate over fixed-broadband sector; China-Pakistan Fiber Optic Project became operational in 2020; partner to Chinese Economic Corridor project; importer of broadcasting equipment and computers from China (2021)

Bangladesh referred its maritime boundary claims with Burma and India to the International Tribunal on the Law of the Sea; Indian Prime Minister Singh's September 2011 visit to Bangladesh resulted in the signing of a Protocol to the 1974 Land Boundary Agreement between India and Bangladesh, which had called for the settlement of longstanding boundary disputes over undemarcated areas and the exchange of territorial enclaves, but which had never been implemented; Bangladesh struggles to accommodate 912,000 Rohingya, Burmese Muslim minority from Rakhine State, living as refugees in Cox's Bazar; Burmese border authorities are constructing a 200 km (124 mi) wire fence designed to deter illegal cross-border transit and tensions from the military build-up along border

various talks and confidence-building measures cautiously have begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir and Northern Areas); UN Military Observer Group in India and Pakistan has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; India and Pakistan have maintained their 2004 cease-fire in Kashmir and initiated discussions on defusing the armed standoff in the Siachen glacier region; Pakistan protests India's fencing the highly militarized Line of Control and construction of the Baglihar Dam on the Chenab River in Jammu and Kashmir, which is part of the larger dispute on water sharing of the Indus River and its tributaries; to defuse tensions and prepare for discussions on a maritime boundary, India and Pakistan seek technical resolution of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch in the Arabian Sea; Pakistani maps continue to show the Junagadh claim in India's Gujarat State; since 2002, with UN assistance, Pakistan has repatriated 3.8 million Afghan refugees, leaving about 2.6 million; Pakistan has sent troops across and built fences along some remote tribal areas of its treaty-defined Durand Line border with Afghanistan, which serve as bases for foreign terrorists and other illegal activities; Afghan, Coalition, and Pakistan military meet periodically to clarify the alignment of the boundary on the ground and on maps