If increasing poverty and hunger are the criteria, then let's see which is a failed state.
Poverty in Pakistan decreased from about 34.5% to 17.2% and hunger went down with it during Musharraf years from 2000 to 2008, as reported by World Bank and IFPRI as lagging indicators in 2010.
The global hunger index score, published annually by the International Food Policy Research Institute(IFPRI), is a number between zero and 100, with lower figure signifying less hunger.
Based on hunger data collected from 2003 to 2008, IFPRI reported that Pakistan's hunger index score improved over the last three consecutive years reported since 2008 from 21.7 (2008) to 21.0 (2009) to 19.1 (2010) and its ranking rose from 61 to 58 to 52. During the same period, India's index score worsened from 23.7 to 23.9 to 24.1 and its ranking moved from 66 to 65 to 67 on a list of 84 nations.
Haq's Musings: Pakistan's Poverty and Hunger Declined in 2000-2008
Haq's Musings: Are India and Pakistan Failed States?