Analyst Suggests Non-Traditional Approach to Alleviate Pakistan’s Crippling Debt Burden
Key Takeaways:
- Pakistan’s external debt has reached alarming levels, exceeding $131 billion as of December 2024.
- Debt servicing is consuming a significant portion of Pakistan’s budget, estimated at over Rs 9.775 trillion for the next fiscal year.
- An analyst suggests considering Bitcoin as a strategic asset, proposing allocation of reserves and issuance of ‘Bitcoin Sovereign Bonds’ to potentially reduce external debt.
Islamabad, Pakistan – April 20, 2025 – In a recent analysis published by The News International, titled “Debt-Free Pakistan” and authored by Dr. Farrukh Saleem, a non-traditional approach to Pakistan’s escalating debt crisis is proposed. The article, available at Debt-Free Pakistan, suggests that Pakistan should consider Bitcoin as a strategic asset.
Dr. Saleem proposes that allocating a portion of the State Bank of Pakistan’s reserves to Bitcoin and issuing ‘Bitcoin Sovereign Bonds’ could potentially wipe out 95% of Pakistan’s external debt within 8-10 years.
Pakistan’s gross external debt has surged to $131.069 billion as of December 2024, according to the State Bank of Pakistan, placing a massive strain on the nation’s economy. Dr. Saleem highlights the escalating costs of debt servicing, which are projected to consume a staggering Rs 9.775 trillion in the next fiscal year. “[Pakistan] needs to think out-of-the-box,” Dr. Saleem argues in his article.
Dr. Saleem proposes that allocating a portion of the State Bank of Pakistan’s reserves to Bitcoin and issuing ‘Bitcoin Sovereign Bonds’ could potentially wipe out 95% of Pakistan’s external debt within 8-10 years. He emphasizes Bitcoin’s historical performance, noting its significant growth over the past decade. While Bitcoin’s value is volatile, its potential for high returns is a key factor in his argument. Some sources indicate Bitcoin has risen over 35,000% in the last 10 years.
Pakistan’s gross external debt has surged to $131.069 billion as of December 2024, according to the State Bank of Pakistan, placing a massive strain on the nation’s economy.
However, this proposal is not without risks. Bitcoin’s volatile nature could lead to significant losses if the market turns downwards. Traditional financial institutions and economists have varying opinions on the viability of cryptocurrency as a solution to national debt.
This suggestion comes at a critical time for Pakistan, as the country grapples with a fragile economic recovery and seeks to manage its debt obligations.
