Pakistan establishes crypto ties with El Salvador

Bilal Bin Saqib, chief executive of the Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador for crypto cooperation.

Pakistan’s interest in digital assets comes as it works under a $7 billion IMF program arranged in 2024 , an arrangement that remains in place through 2027.

President Bukele met yesterday at Casa Presidencial with the Minister of Crypto for Pakistan @Bilalbinsaqib pic.twitter.com/J2SdnTeQCJ

— The Bitcoin Office (@bitcoinofficesv) July 16, 2025

This new collaboration reflects how digital currencies are entering the realm of international relations.

El Salvador itself faced IMF concerns according to Bloomberg. Its loan pact required it to halt new Bitcoin purchases, yet in April it reported holding 6,238 Bitcoin, valued at about $745 million at current market rates.

Pakistan’s crypto power push faces IMF scrutiny over market distortion risks

Back in Pakistan, digital currency trading is already widespread despite central‑bank warnings about market volatility and consumer risks. Between 15 million and 20 million Pakistanis hold cryptocurrencies, according to Saqib.

To channel this momentum, the coutnry has earmarked 2,000 megawatts of electricity for Bitcoin mining and announced plans to establish a national Bitcoin reserve.

However, Fakhre Alam Irfan, Pakistan’s Power Secretary, told the Senate’s Energy Committee that the IMF has raised concerns over offering preferential electricity rates to crypto miners, warning it could skew the country’s delicate power market and intensify existing vulnerabilities.

Although Pakistan often has extra electricity, especially in winter, the IMF warns that offering special prices for crypto miners could upset the balance between supply and demand. Under the terms of Pakistan’s $7 billion IMF facility, any major shifts in energy policy must receive prior IMF sign‑off.

In July 2025, Pakistan formally established the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and oversee virtual‑asset exchanges, wallets, stablecoins and related services.

This move followed an April 2025 Letter of Intent between the Pakistan Crypto Council and World Liberty Financial, a Trump‑backed firm, aimed at fast‑tracking blockchain adoption through pilot regulatory sandboxes and stablecoin initiatives.

Although Pakistan avoided a sovereign default in 2023, it still faces steep financing needs. The IMF projects that it will require more than $100 billion in external funding by 2029 to cover budget and balance‑of‑payments gaps.