Pakistan and El Salvador signed a two-way agreement focused on cryptocurrency collaboration, the first such international pact in which crypto takes center stage in foreign relations.
The news follows a day after Bilal bin Saqib, the Head of Pakistan’s Crypto Council and special assistant to the prime minister, and El Salvador President Nayib Bukele met in South America. The central purpose of this deal is to establish the foundation for exchange of knowledge between the two countries, particularly on Bitcoin stacking and blockchain building.
El Salvador Leads, Pakistan Follows
El Salvador has been a consistent global crypto adoption front-runner at the national level. Since it became legal tender for Bitcoin in 2021, the country has piled up over 6,238 BTC—worth approximately $745 million at current prices.
Pakistan, by contrast, is only just beginning to lay the groundwork for an equivalent national program. The country now considers the establishment of a state-run Bitcoin reserve as part of a broader vision of integrating digital assets into the economy.
IMF Pushback Challenges Pakistan’s Crypto Ambitions
Despite its zeal, Pakistan’s crypto push is facing hurdles—primarily from the International Monetary Fund (IMF). Earlier in the month, the IMF rejected the appeal of Pakistan to subsidize electricity consumption in Bitcoin mining on grounds of disapproval of crypto inclusion in government policies.
This resistance comes amid Pakistan’s ongoing $7 billion IMF loan program through 2027, so compliance with IMF norms is a key consideration of its economic policies.
El Salvador Pushes Ahead Despite IMF Opposition
Notably, El Salvador also has an IMF loan deal but in a different manner. The country continues to purchase Bitcoin and build out its crypto infrastructure regardless of caution by international institutions.
“There’s a commitment of President Bukele to keep accumulating assets. Bitcoin keeps being an important project,” Economy Minister Maria Luisa Hayem last month reported.
Future Outlook: Learning From a Crypto Pioneer
For Pakistan, this partnership would be a stepping stone in navigating technical and geopolitical challenges of state-sponsored crypto adoption. By watching El Salvador’s approach to Bitcoin reserves, policy on mining, and negotiation in the global community, Pakistan aims to develop its own sustainable crypto framework.
The two-nation agreement is part of a new era of diplomacy—one where digital assets help shape cross-border collaboration.
