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In a landmark diplomatic breakthrough, Pakistan and El Salvador have officially established a crypto-based bilateral relations for the first time.
The initiative is being spearheaded by Bilal Bin Saqib, Chief Executive of the Pakistan Crypto Council and Special Assistant to the Prime Minister of Pakistan on Crypto and Blockchain. During a high-level meeting in El Salvador, Saqib met with President Nayib Bukele, the global face of national-level crypto adoption, to launch a knowledge-sharing partnership.
This alliance comes at a time when Pakistan is cautiously exploring the digital asset space while navigating a strict $7 billion IMF loan program lasting until 2027. Despite IMF skepticism toward crypto investments, both nations are pursuing parallel ambitions in the blockchain space.
Bukele’s Crypto Hub Inspires Pakistan’s New Strategy
El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender, defying IMF pushback. As of July 2025, El Salvador has acquired 6,238 BTC, worth approximately $745 million, even after agreeing to limit crypto purchases under IMF pressure.
Now Pakistan appears to be taking inspiration. Bilal Bin Saqib revealed that 15 to 20 million Pakistanis already own crypto, despite repeated warnings from the State Bank of Pakistan. With such widespread adoption, the government is stepping in to regulate and formalize the industry.
National Bitcoin Reserve and Mining Infrastructure Planned
Pakistan has already allocated 2,000 megawatts of energy for Bitcoin mining, indicating strong state-level support. The country also aims to build a national Bitcoin reserve, following executive-level crypto interest from international allies.
In May, Pakistan formed the Pakistan Digital Assets Authority, which will oversee the regulation of digital assets, cryptocurrency exchanges, and blockchain use cases. This move was closely followed by a letter of intent with World Liberty Financial, a firm linked to the Trump family, signaling growing foreign interest in Pakistan’s blockchain ecosystem.
What Can the World Expect from this Alliance
Pakistan’s bold pivot towards cryptocurrency represents a major shift in geopolitical and economic strategy. As both El Salvador and Pakistan operate under IMF programs, their growing crypto alliance could signal a broader movement among developing nations seeking digital sovereignty.
By aligning with El Salvador, Pakistan positions itself as a future crypto hub of South Asia, while also laying the groundwork for formal recognition and global partnerships in the digital asset space.
