Published: February 2026
Pakistan’s public debt stood at approximately PKR 80.5 trillion (≈ USD 288 billion) at the end of fiscal year 2025–26 Q1, equivalent to roughly 74.5% of projected GDP. While external debt has declined modestly in rupee terms (down PKR 492 billion in recent quarters per SBP data), domestic borrowing continues to grow, interest payments consume ~45–50% of federal revenue, and multilateral/IMF financing remains conditional on structural reforms.
Against this backdrop, tokenization of sovereign and state-owned assets through real-world asset (RWA) blockchain frameworks has emerged as a serious policy discussion topic in 2026. Proponents argue that fractional ownership of land registries, hydropower projects, mineral concessions, and infrastructure concessions could unlock tens of billions in liquidity without full privatization, attract diaspora capital, improve transparency, and reduce reliance on high-cost conventional borrowing.
This article examines the current debt situation, suitable asset classes for tokenization, potential benefits and risks, global precedents, regulatory considerations in Pakistan, and realistic pathways forward in 2026.
Pakistan Debt Snapshot – February 2026
| Category | Amount (PKR trillion) | % of GDP (proj. FY26) | YoY Change | Source |
|---|---|---|---|---|
| Total Public Debt | 80.5 | 74.5% | +6–8% | SBP / MoF |
| Domestic Debt | ≈52.8 | ≈49% | +9–11% | SBP |
| External Debt & Liabilities | ≈27.7 | ≈25.5% | –2% (PKR terms) | SBP |
| Interest Payments (annual) | ≈7.8–8.5 | ≈45–50% of federal revenue | ↑ due to higher rates | Budget Wing |
| Debt Service to Revenue Ratio | ≈110–120% | — | Unsustainable without reforms | IMF / MoF |
Key pressure points: high domestic interest rates (T-bills ~18–22%), short maturity profile of domestic debt (~2–3 years average), and reliance on multilateral rollovers for external obligations.
Which Sovereign Assets Are Most Suitable for Tokenization in Pakistan?
Not all public assets are equally feasible for blockchain tokenization. The most discussed categories in policy circles and fintech reports include:
- Land & Real Estate Registries
Pakistan has ~220 million people and vast untitled / under-titled land (estimates range 50–70% of total area). Digitizing and tokenizing clear-title land into fractional ownership could unlock billions in liquidity for owners without selling entire parcels. - Energy & Hydropower Infrastructure
Untapped hydropower potential (~60,000 MW, only ~12% developed). Tokenizing future revenue streams from new small/medium dams or solar parks could attract private capital without full privatization. - Mineral & Mining Rights
Large untapped deposits of copper, gold, coal, rare earths (Reko Diq, Thar coal, Chitral). Fractional tokenized rights could fund exploration while retaining state ownership. - State-Owned Enterprises (SOE) Equity & Revenue Shares
Partial tokenized stakes in profitable SOEs (e.g. OGDCL, PPL, PSO) or revenue-linked tokens from infrastructure PPPs.
Potential Benefits of Sovereign RWA Tokenization for Pakistan
- Liquidity without Privatization
Raise capital by selling fractional ownership or revenue rights while the state retains control and majority economic interest. - Diaspora & Global Capital Inflows
Overseas Pakistanis (~9–10 million) send ~$30–35B remittances annually. Tokenized assets could channel part of that capital into productive domestic investments. - Transparency & Reduced Corruption
Blockchain-based registries make ownership, transfers and revenue distribution verifiable and auditable. - Lower Cost of Capital
Global investors may accept lower yields for tokenized RWAs than conventional Pakistani sovereign bonds (currently 12–18% in USD terms). - Inflation Hedge & Currency Stability
Tokenized assets denominated in USD or stablecoins could reduce PKR depreciation pressure on debt servicing.
Risks & Challenges of Tokenization in Pakistan
- Regulatory Uncertainty
SECP and SBP have made progress on virtual assets (2025 VASP framework), but no clear sovereign RWA guidelines exist yet. - Political & Governance Risks
Land tokenization could face resistance from powerful landholding groups; SOE tokenization may trigger opposition from public-sector unions. - Technical & Infrastructure Gaps
Land record digitization is incomplete in many provinces; blockchain adoption requires significant capacity building. - AML / Sanctions Compliance
Tokenized assets must comply with FATF standards and international sanctions — a challenge given Pakistan’s grey-list history. - Market & Liquidity Risk
Early tokenized markets may suffer low liquidity, price manipulation, or failure to attract sufficient global buyers.
Global Precedents & Lessons for Pakistan
- El Salvador Bitcoin Bonds (2024–2025)
Attempted tokenized sovereign debt backed by BTC & volcano energy; delays highlight execution and investor trust challenges. - BlackRock BUIDL Fund (2024–2026)
Tokenized US Treasury fund on Ethereum → $500M+ AUM. Shows institutional demand exists for compliant RWAs. - UAE & Bahrain RWA Pilots
Tokenized real estate & sukuk issuances demonstrate Shariah-compliant models Pakistan could adapt. - Indonesia & Philippines Land Tokenization
Early pilots for fractional ownership of agricultural land → lessons on community buy-in and legal frameworks.
Trading & Positioning Implications on Tapbit
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FAQs – Pakistan Sovereign Asset Tokenization 2026
Why is Pakistan considering asset tokenization?
PKR 80.5 trillion public debt (≈74.5% GDP) and high interest burden create urgency to find new financing sources without full privatization. Tokenization could unlock liquidity from land, energy and mineral assets. What assets are most suitable for tokenization in Pakistan?
Land registries (untitled land), hydropower projects, mineral concessions (copper/gold/coal), and revenue-linked SOE stakes are frequently discussed. Is tokenization realistic for Pakistan in 2026?
Technically feasible with existing blockchain infrastructure, but regulatory, political and infrastructure challenges remain significant. Pilot projects are more likely than large-scale rollout in 2026. How could tokenization help Pakistan’s diaspora?
Overseas Pakistanis send $30–35B remittances annually. Tokenized assets could offer investment opportunities in domestic land/energy/minerals with transparent ownership and potential yields.
Conclusion & Realistic 2026 Outlook
Pakistan’s public debt of PKR 80.5 trillion (≈74.5% of GDP) creates enormous pressure to explore non-traditional financing. Tokenizing sovereign assets — particularly land registries, hydropower infrastructure, and mineral rights — could theoretically unlock tens of billions in liquidity while retaining state control and improving transparency.
However, significant hurdles remain: incomplete land digitization, political resistance to perceived privatization, regulatory gaps at SECP/SBP, and the need for robust AML/KYC frameworks. While full-scale sovereign RWA issuance is unlikely in 2026, pilot projects (small land parcels, select energy concessions) are realistic and could pave the way for larger adoption later in the decade.
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Disclaimer: Cryptocurrency trading and real-world asset tokenization involve significant risk of loss. Regulatory frameworks in emerging markets are evolving and uncertain. This article is for informational purposes only and does not constitute investment, legal or financial advice. Always conduct your own research (DYOR) and consult qualified professionals before making decisions.
