Pakistan and El Salvador Form Diplomatic Ties Around Crypto and Blockchain

Pakistan and El Salvador have officially established diplomatic relations for the first time, with a shared focus on cryptocurrency and blockchain collaboration, according to a joint announcement made on July 16.

The milestone came after a meeting in San Salvador between El Salvador’s President Nayib Bukele and Bilal Bin Saqib, Pakistan’s special assistant to the Prime Minister on crypto and blockchain. Saqib, who also heads the Pakistan Crypto Council, has been instrumental in shaping Pakistan’s emerging digital asset strategy.

A statement from Pakistan’s ministerial office confirmed that both countries have agreed to deepen cooperation by sharing expertise in blockchain policy and digital asset development.

This development marks a pivotal moment for Pakistan as it embraces crypto innovation despite its financial commitments under a $7 billion International Monetary Fund (IMF) program, which runs through 2027. While staying within IMF compliance, the government is simultaneously advancing a wide-ranging crypto agenda.

Among Pakistan’s initiatives: allocating 2,000 megawatts of energy for Bitcoin mining, establishing a national Bitcoin reserve, and launching the Pakistan Digital Assets Authority in May to regulate the crypto sector.

Saqib’s visit follows a letter of intent signed earlier this year between the Pakistan Crypto Council and World Liberty Financial, a company linked to the Trump family, to accelerate blockchain adoption nationwide.

El Salvador—known for making Bitcoin legal tender in 2021—continues to lead globally in pro-crypto policy. Under Bukele’s leadership, the country has amassed over 6,000 Bitcoins, with its crypto treasury valued at more than $700 million.

Despite facing criticism from the IMF, El Salvador has maintained its crypto-first stance—a strategy that now appears to be influencing Pakistan’s evolving financial policy.

In Pakistan, crypto adoption continues to rise despite regulatory ambiguity. Estimates indicate that 20 to 40 million Pakistanis either hold or have interacted with digital currencies. As the nation confronts economic challenges, its new alliance with El Salvador may mark a strategic turn toward a blockchain-powered future.