Pakistan and El Salvador have formalized diplomatic relations for the first time, anchoring the partnership on crypto collaboration and digital asset development, according to a July 16 announcement.
The presser followed a meeting in San Salvador between Bilal Bin Saqib, special assistant to Pakistan’s prime minister on crypto and blockchain, and El Salvador’s President Nayib Bukele.
Saqib also heads the Pakistan Crypto Council, which has played a key role in shaping the country’s emerging digital asset strategy.
According to a statement from Pakistan’s ministerial office, the two nations agreed to share expertise and build cooperation on blockchain policy.
This marks a significant step for Pakistan as it embraces crypto technology despite constraints under its loan program with the International Monetary Fund.
The South Asian country is currently operating under a $7 billion IMF facility that runs until 2027. While the country seeks to remain compliant with its obligations, the government is simultaneously advancing a broad crypto agenda.
That includes setting aside 2,000 megawatts of power for Bitcoin mining, planning a national Bitcoin (BTC) reserve, and launching the Pakistan Digital Assets Authority in May to oversee crypto regulation.
Saqib’s visit also builds on a letter of intent signed earlier this year between the Pakistan Crypto Council and World Liberty Financial, a firm linked to the Trump family, aiming to accelerate blockchain adoption across the country.
El Salvador, which adopted Bitcoin as legal tender in 2021, has emerged as a global pioneer in crypto policy under Bukele’s leadership. To date, the country has accumulated over 6,000 Bitcoins, and its crypto treasury is estimated at over $700 million.
Despite international scrutiny, particularly from the IMF, El Salvador has continued to promote digital assets as part of its national strategy, an approach that now appears to be influencing Pakistan’s evolving financial policy.
Crypto remains popular in Pakistan despite regulatory uncertainty. Estimates suggest that between 20 million to 40 million Pakistanis either hold some form of digital currency or have interacted with digital assets for their financial needs.
As the country faces growing fiscal pressures and seeks new avenues for innovation and growth, its partnership with El Salvador may signal a strategic pivot toward a blockchain-driven economic future.