Pakistan, El Salvador establish bilateral ties based on crypto

Pakistan and El Salvador have established bilateral ties for the first time, putting cryptocurrency cooperation at the center of the relationship.

Bilal Bin Saqib, chief executive of Pakistan Crypto Council and special assistant to Pakistan’s prime minister on crypto and blockchain, met with El Salvador’s President Nayib Bukele in the South American country to discuss a knowledge-sharing partnership, according to a statement by Pakistan minister’s office.

The move comes as Pakistan, which only recently warmed to the volatile world of digital assets, explores how to engage with crypto markets while remaining under the constraints of an International Monetary Fund program — a path El Salvador has already taken. Pakistan secured a $7 billion loan program from the IMF last year that lasts until 2027.

The IMF took a dim view of some of Bukele’s crypto activities, however El Salvador in April said it was still purchasing Bitcoin even after signing a loan agreement with the IMF that required it to stop accumulating the original cryptocurrency. The country has now amassed 6,238 Bitcoin, worth about $745 million at current prices.

Bukele has for years sought to turn El Salvador into a crypto hub. The Central American nation became the first to adopt Bitcoin as legal tender in 2021 while under its own IMF program. Tether Holdings SA, issuer of the most popular stablecoin, established a headquarters there in January.

Crypto trading is popular in Pakistan, the world’s fifth-most populous country, despite repeated warnings from the central bank. Between 15 million and 20 million Pakistanis hold crypto, Saqib said in an interview with Bloomberg TV in March.

Pakistan has allocated 2 000 megawatts for Bitcoin mining and plans to create a national Bitcoin reserve — steps seen inspired by an executive order issued by US President Donald Trump shortly after he took office.

In May, Pakistan established the Pakistan Digital Assets Authority to regulate the industry. The move followed a letter of intent signed between the Pakistan Crypto Council and the Trump family’s World Liberty Financial to accelerate blockchain adoption in the country.

While Pakistan averted a default in 2023, it continues to face steep financing needs. The IMF estimates the country will require more than $100 billion in external funding through 2029.

© 2025 Bloomberg

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