Pakistan and El Salvador have initiated a collaborative effort focused on cryptocurrency, marking a significant step in their respective strategies for digital asset adoption. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador to discuss closer cooperation on digital assets, particularly Bitcoin.

Pakistan has ambitious plans in the crypto space. The country intends to allocate 2,000 megawatts of electricity for Bitcoin mining and establish a national Bitcoin reserve. However, this initiative requires approval from the International Monetary Fund (IMF), as Pakistan is currently under a $7 billion IMF program that extends through 2027. Any substantial changes in energy policy necessitate the IMF’s endorsement.

The IMF has expressed concerns about the potential market distortions that could arise if crypto miners receive subsidized electricity. Pakistan’s power grid often operates with surplus capacity, especially during winter, but offering preferential rates could disrupt the supply-demand balance and strain the existing infrastructure. Despite these concerns, the domestic crypto market in Pakistan is thriving, with 15 to 20 million Pakistanis already holding cryptocurrencies, according to Saqib.

To regulate this growing market, Pakistan established the Pakistan Virtual Assets Regulatory Authority in July 2025. This authority is responsible for licensing and overseeing exchanges, stablecoins, wallets, and other digital asset services. This move follows an April 2025 Letter of Intent between the Pakistan Crypto Council and World Liberty Financial, which aims to accelerate blockchain adoption through regulatory sandboxes and stablecoin pilots.

Both countries face challenges in their crypto endeavors. El Salvador continues to navigate IMF restrictions on new Bitcoin purchases, despite holding over 6,000 BTC, valued at around $745 million, and remaining committed to its crypto-first approach. Pakistan, on the other hand, must balance its crypto ambitions with economic recovery and stringent fiscal oversight. The IMF estimates that Pakistan will require over $100 billion in external funding by 2029. Nevertheless, the meeting between Saqib and Bukele underscores how digital assets are fostering international alliances.