The global landscape of cryptocurrency is rapidly evolving, and nations are increasingly looking to adapt successful models from one another. Recently, Pakistan has set its sights on adopting strategies from El Salvador, notably in the realm of Bitcoin and blockchain technology. This development took center stage when Bilal Bin Saqib, CEO of the Pakistan Crypto Council and advisor to the Prime Minister, engaged with President Nayib Bukele of El Salvador during a pivotal meeting in San Salvador.
In this meeting, the two leaders formulated a strategic Letter of Intent. The document aims to foster collaboration in public sector applications of Bitcoin, driving initiatives for financial inclusion and enhancing policymaking in evolving markets.
Forging an Alliance: Pakistan and El Salvador’s Shared Vision
Reports suggest that the newly formed framework cements a partnership between El Salvador’s BTC Office and the Pakistan Crypto Council. This alliance aims to offer guidance to Islamabad as it seeks to establish robust regulations governing cryptocurrency adoption.
Pakistan, currently navigating a challenging $7 billion IMF loan arrangement until 2027, is eager to extract lessons from Bukele’s prior experiences, particularly concerning the controversial legalization of cryptocurrency as legal tender which began in September 2021. This move faced skepticism from the International Monetary Fund, highlighting the perils associated with crypto adoption.
Had a remarkable meeting with President @nayibbukele, a true visionary leader. His insight into modern technology and its implications is undeniably profound.
— Bilal Bin Saqib MBE (@Bilalbinsaqib) July 16, 2025
IMF’s Concerns: Potential Setbacks for Mining Initiatives
Recent communications from the IMF led to the rejection of Pakistan’s proposal for subsidized energy aimed at supporting energy-heavy sectors like Bitcoin mining.
This proposal included utilizing 2,000 megawatts of excess seasonal electricity, particularly during winter, to power mining operations and data centers. However, the IMF cautioned that such pricing models could distort Pakistan’s energy market and disrupt fiscal stability. The implications of moving ahead without IMF support could result in further delays in vital loan provisions.
Building Strategic Bitcoin Reserves
In a bid to learn from established players, Pakistan’s delegation also engaged in a virtual discussion with Michael Saylor, CEO of Strategy, an entity known for maintaining a hefty $62 billion in Bitcoin reserves. Saylor provided insights on effectively managing a large cryptocurrency portfolio while utilizing digital assets as a tool for institutional treasury management.
Pakistan aims to construct its own ”Strategic Bitcoin Reserve,” while mitigating risks that fluctuations in Bitcoin prices pose to public finances. Presently, El Salvador boasts approximately 6,240 BTC, valued around $740 million, thanks to Bukele’s proactive acquisition since the inception of its Bitcoin regulation, despite challenges tied to market volatility.
Future Steps for Pakistan: Educational and Technical Missions
Echoing his admiration for Bukele’s leadership, Saqib emphasizes that vision and conviction play pivotal roles in a nation’s journey toward cryptocurrency integration, surpassing mere financial resources.
Looking ahead, Pakistan plans to send technical teams to El Salvador in the coming months. These experts will examine Bukele’s fiscal measures concerning Bitcoin gains, study the operational framework of the nation’s Bitcoin trust, as well as explore pilot projects that leverage blockchain for government transactions.
This emerging collaboration signals the importance of global learning and innovation in the fast-paced world of cryptocurrency, with potential implications for both nations.
