Bitcoin on the Global Stage: Pakistan and El Salvador Forge Crypto Alliance

Summary: In a significant international crypto development, Pakistan and El Salvador have signed a Letter of Intent to collaborate on Bitcoin adoption, public-sector blockchain integration, and strategic regulation. The agreement signals Islamabad’s deepening interest in crypto as it seeks guidance from a pioneer in national Bitcoin policy.

Pakistan Signs Framework with El Salvador

This week, Bilal Bin Saqib, CEO of the Pakistan Crypto Council and special assistant to Pakistan’s prime minister on crypto and blockchain, met with El Salvador’s President Nayib Bukele in San Salvador. The two sides signed a Letter of Intent to exchange expertise on integrating Bitcoin into public finance, promoting blockchain-driven financial inclusion, and shaping cryptocurrency regulation across emerging markets.

The agreement establishes formal ties between El Salvador’s Bitcoin Office and Pakistan’s Crypto Council, paving the way for policy consultation as Islamabad advances its crypto strategy under the watchful eye of global financial institutions.

Just met one of the most extraordinary visionary leaders of our time, President of El Salvador, @nayibbukele

A head of state who doesn’t just talk tech, but challenges it, from AI and robotics to Bitcoin.

He’s a leader from the future, who saw the future first because when it… pic.twitter.com/QpS6vVnTxv

— Bilal bin Saqib MBE (@Bilalbinsaqib) July 16, 2025

IMF Concerns Stall Mining Plans

Despite its growing enthusiasm for crypto, Pakistan’s ambitions to kick-start a Bitcoin mining sector have hit a roadblock. The International Monetary Fund (IMF), which currently supports Islamabad under a $7 billion loan agreement through 2027, has reportedly blocked proposed subsidies for energy-intensive industries like cryptocurrency mining and AI data centers.

Islamabad had planned to repurpose up to 2,000 megawatts of surplus winter electricity for such operations. However, the IMF warned that such preferential pricing could distort energy markets and jeopardize the country’s fiscal discipline—potentially delaying future loan disbursements.

Bitcoin Reserves and Strategic Talks

Pakistan’s crypto ambitions also include building a strategic Bitcoin reserve. During the visit to El Salvador, the Pakistani delegation held a virtual session with Michael Saylor of Strategy, whose firm holds over $62 billion in BTC reserves. Saylor provided insights on managing institutional Bitcoin portfolios and utilizing crypto for treasury management in volatile markets.

As of now, El Salvador holds more than 6,240 BTC, valued at around $740 million. The country has more than doubled its holdings since enacting its Bitcoin Law in 2021, positioning itself as a model for state-level crypto reserves despite ongoing volatility and skepticism.

Next Steps for Islamabad

Describing Bukele as “a leader from the future,” Saqib emphasized that political vision plays a more critical role than financial resources when adopting national crypto policies.

Pakistan is expected to send technical delegations to El Salvador later this year to examine the operational frameworks behind its Bitcoin trust, crypto tax policies, and blockchain-based public payment pilots. These insights will inform Pakistan’s broader digital currency policy in the face of global scrutiny and macroeconomic pressure.

Featured image from Shutterstock, chart from TradingView