Archive · 23 Jun 2025
Expert: US Debt Bubble Burst Would Hurt Pakistan More
A financial expert explained that if the US has trouble paying its debts, it will hurt Pakistan more.
This is because the US can print more money to pay its debts, but Pakistan cannot.
Pakistan has a lot of debt, some of which is in US dollars.
When the US has debt problems, investors move their money to safer places like the US, Singapore, and Switzerland.
Pakistan already has a lot of debt, and relies on help to manage it.
Pakistan's total debt has increased, but its public debt compared to its economy has slightly decreased, and the country has more money in reserve than before.
Expert warns Pakistan could suffer more than the US when the US debt bubble bursts.
The US can print dollars to manage its debt, while Pakistan cannot.
Pakistan relies on debt restructuring and IMF support due to its debt situation.
Pakistan's total debt reached PKR 76,000 billion in the first nine months of FY 2024-25.
Pakistan's public debt-to-GDP ratio decreased slightly to 65%, with foreign exchange reserves at USD 16.64 billion in 2025.
- Who
- Akshat Shrivastava, an investment education platform founder.
- What
- An expert's analysis of how a US debt crisis would affect Pakistan more severely.
- When
- The analysis was released on June 23, 2025.
- Where
- The analysis focuses on the economic impacts in the US and Pakistan.
- Why
- The analysis explains Pakistan's vulnerability to global debt risks because Pakistan cannot print dollars, unlike the US.
- Expert
- Akshat Shrivastava, founder of Wisdom Hatch
- Pakistan's Total Debt (FY2024-25)
- PKR 76,000 billion
- Local Debt
- PKR 51,500 billion
- External Debt
- PKR 24,500 billion
- Public Debt-to-GDP Ratio
- 65%
- Pakistan's Foreign Exchange Reserves (2025)
- USD 16.64 billion