Contradicting reports have emerged regarding Davis, some claiming that he had "close links" with Tehrik-e-Taliban Pakistan while others said the US official "was part of a covert, CIA-led team of operatives conducting surveillance on militant groups deep inside the country."
"This is not an ordinary situation," Khan told the Time. "If he (Davis) is returned to the US under diplomatic immunity, it might trigger the revolution off."
37-year-old Davis, arrested in Lahore on January 27 for killing two men he claimed were trying to rob him, is currently in jail in Pakistan.
The US had demanded the release of Davis contending that he is an "administrative and technical official" attached to its Lahore consulate and that he enjoys diplomatic immunity.
However, Khan suggested that Pakistan was ripe for an uprising. "I think Pakistan is completely ready for it," he said, adding, "In fact, it's even more ready than Egypt was."
Following the overthrow of leaders in Tunisia and Egypt, large-scale protests have erupted in several countries in the region including Bahrain, Yemen and Libya.
Observers have wondered how far the call for change will spread in the Muslim world.
The media report pointed out that, unlike Egypt, Pakistan has had three years of civilian democracy, a lively media, and other political freedoms that allow its citizens to dissent.
But Khan asserted that youth in Pakistan suffer many of the same problems as their counterparts in Egypt.
"Never in our history have we had such levels of corruption and such bad governance," Khan claimed, slamming the economic and political situation in the country as well.
"You can see the whole thing already bubbling under surface," he added.