I am currently using a IBM MQ Advanced for Developers server for testing our client and was able to achieve around 1000 messages per second using the sample consumer written in jms, which seems to be pretty slow. Is this a limit for dev server, and if yes that what throughput can be achieved using a licensed production IBM MQ server.
There is no artificial limit associated with IBM MQ Advanced for Developers. It is the same as the licensed production version of IBM MQ.
You don't say what type of machine you were using, what persistence your messages were, what size they were, or any other qualifying criteria.
You say client, but I don't know whether you mean "network attached application" or "driving application". Clearly if your program is running "client-attached" (MQ parlance for network attached), then the network performance will also come into this.
On my Windows laptop, I get 4500 non-persistent msgs/sec, or 2000 persistent msgs/sec using a simple C-language locally bound program. Over client connection (just using localhost, not actually going out over a real network connection) I get 2700 non-persistent msgs/sec, or 1500 persistent msgs/sec.
You should read the MQ Performance Reports for details of the expected rates you can get.