Pakistan and El Salvador Start Crypto Cooperation

Pakistan and El Salvador are joining forces when it comes to crypto. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador. The goal was to establish closer cooperation on digital assets, as both nations double down on Bitcoin adoption.

Bitcoin mining, national reserve plans, and the IMF

This partnership marks a new chapter in crypto’s role on the world stage. For El Salvador, it’s another step in legitimizing its Bitcoin strategy. For Pakistan, it shows a shift toward embracing blockchain infrastructure, despite pressure from international institutions.

Pakistan has big ambitions. The country plans to allocate 2,000 megawatts of electricity toward Bitcoin mining and set up a national Bitcoin reserve. But it needs the IMF’s approval. Pakistan is currently under a $7 billion IMF program that runs through 2027, and any major changes in energy policy require greenlighting from the Fund.

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The IMF has voiced concerns about market distortion, particularly if crypto miners receive subsidized electricity. Pakistan’s power grid often runs with surplus capacity, especially in winter, but offering preferential rates could disrupt supply-demand dynamics and strain existing infrastructure.

Despite the pushback, crypto is booming domestically. Between 15 and 20 million Pakistanis already hold cryptocurrencies, according to Saqib.

Pakistan’s regulatory pivot

To bring structure to this growing market, Pakistan launched the Pakistan Virtual Assets Regulatory Authority in July 2025. This partnership is tasked with licensing and overseeing exchanges, stablecoins, wallets, and other digital asset services.

This follows an April 2025 Letter of Intent between the Pakistan Crypto Council and Trump-backed World Liberty Financial. That agreement aims to fast-track blockchain adoption through regulatory sandboxes and stablecoin pilots.

What’s next?

Both countries face hurdles. El Salvador is still navigating IMF restrictions on new Bitcoin purchases. Yet it holds over 6,000 BTC, worth around $745 million, and remains committed to its crypto-first vision. Pakistan, meanwhile, must juggle crypto ambitions with economic recovery and tight fiscal oversight. The IMF estimates it will need over $100 billion in external funding by 2029. Still, the meeting between Saqib and Bukele shows how digital assets are supporting international alliances.