Our gross exterior loans and liabilities have grossed $ 132 billion in 2008 from $ 44 billion to $ 132 billion. Every year, a back-breaking Rs. 10 trillions are consumed by debt servicing alone. Then under the 18th amendment, the RS7 trillion entrusted to the provinces – and thus, nothing is left to the federal government. Zero.
what happens next? The federal government borrows to survive. More than RS2 trillion for defense? Borrowed In Rs1.8 trillion grant? Borrowed Rs .1.7 trillion for development? Borrowed Rs.1.4 trillion in subsidy? Borrowed More than RS1 trillion in pension? Borrowed Even the civil government requires 839 billion to run? You guess – borrowed. We have a debt-fuel existence.
We pursue the solution in the International Monetary Fund (IMF) loan. We pin our hopes on bilateral aid. We resort to penance. And yet, nothing works. Let’s move our monetary thinking. Bitcoin is a finite property: only 21 million will be present anytime. Performance of bitcoin: 10-year compound annual growth rate (CAGR) is more than 70%.
The US has placed the largest national stand of bitcoin in 198,000 coins, followed by China with 190,000. Britain has 61,000, Ukraine 46,000 and North Korea 13,000. The UAE is buying bitcoin. Even small nations are in sports: Bhutan has 8,000 and Al Salvador 6,000. Other countries like Venezuela, Finland and Georgia also maintain bitcoin reserves.
The Government of Pakistan has two options. Option 1: Nothing. Cost of doing nothing: further loan, more IMF dependence. Option 2: Do some non-traditional: Pay the loan and recover the economic sovereignty.
What is a historic here-IF: Pakistan allocated Bitcoin only $ 500 million in 2015, this investment can be more than $ 10 billion today-a 20x return based on historical price movements.
State Bank of Pakistan (SBP) does not need to gamble; It needs to think about a long-term and out-out box. Consider this high-reside, strategic hedge: SBP gradually allocates $ 5 billion in bitcoin over the next two years, buys dips and spreads entry points.
Then, let the chakras play: First cycle (4-5 years): increases $ 5 billion 5x in $ 25 billion. Second cycle (another 4-5 years): Grows $ 25 billion at $ 125 billion. This is 95 % of Pakistan’s external debt-a probably erased in 8–10 years, without borrowing another dollar.
How to release ‘Bitcoin Sovereignty Bond’ about Pakistan – to raise capital by exploiting the global crypto wealth on Al Salvador’s ‘volcanic bond’?
I propose a $ 1 billion sovereign bond issue as a initial point. Global crypto marketing hungry bonds to investors for yield and reverse. Highlight Pakistan’s strategic geography, talent pool and investment capacity.
Pakistan is in a debt trap with limited options. Bitcoin provides a non-traditional, high-appside hedge. The market cycles of bitcoin rewarded patience, providing a lifeline to Pakistan. The risk of bitcoin is appropriate with its possible awards. These are not speculation; If strategically embraced is a proof of bitcoin’s ability to change Pakistan’s financial future. Bitcoin is a calculation risk for Pakistan’s economic salvation, as a rapid growth with global adoption.
The author is a columnist located in Islamabad. That tweet/post @saleemfarukh and can be reached on: (Email protected)
Disclaimer: The attitude expressed in this piece belongs to the author’s own and not necessarily reflecting the editorial policy of Jio.TV.
Originally published Reports
