Pakistan, El Salvador Establish Bilateral Relations Focused on Cryptocurrency for First Time

Pakistan and El Salvador have officially established bilateral relations centered around cryptocurrency for the first time.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council and special assistant to Pakistan’s prime minister on crypto and blockchain matters, met with El Salvador’s President Nayib Bukele in El Salvador to explore a knowledge-sharing partnership, according to the Ministry of Foreign Affairs.

Notably, El Salvador was the first country in Central America to adopt Bitcoin in 2021 while participating in an IMF program.

Pakistan, recently entering the digital asset space, aims to engage with crypto markets while under an IMF program. Pakistan secured a $7 billion IMF loan extending to 2027 and has taken steps like allocating 2,000 megawatts for Bitcoin mining and planning a national Bitcoin reserve.

In May, Pakistan formed the Pakistan Digital Assets Authority to regulate crypto, following a partnership with the Trump family’s World Liberty Financial to promote blockchain adoption.

El Salvador, under its IMF program, became the first country to adopt Bitcoin as legal tender in 2021 and continues to buy Bitcoin despite IMF restrictions, holding over 6,200 BTC worth about $745 million.

Crypto is popular in Pakistan, with 15 to 20 million holders despite central bank warnings. Pakistan faces significant financing needs, with the IMF estimating it will need over $100 billion in external funding through 2029.

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