Bitcoin News Today: Pakistan Seeks Crypto Cooperation With El Salvador Amid IMF Program

Pakistan has taken a significant step towards embracing digital currencies by establishing crypto ties with El Salvador. Bilal Bin Saqib, the chief executive of the Pakistan Crypto Council, met with El Salvador’s President Nayib Bukele in San Salvador to discuss potential cooperation in the crypto sphere. This meeting underscores Pakistan's growing interest in digital assets, which comes at a time when the country is operating under a $7 billion IMF program that extends through 2027.

El Salvador, known for its pioneering adoption of Bitcoin as legal tender, has faced scrutiny from the IMF regarding its crypto policies. The IMF's loan pact with El Salvador required the country to halt new Bitcoin purchases, yet El Salvador reported holding 6,238 Bitcoin, valued at approximately $745 million at current market rates. This new collaboration between Pakistan and El Salvador reflects the broader trend of digital currencies entering the realm of international relations.

In Pakistan, digital currency trading is already widespread, with an estimated 15 million to 20 million Pakistanis holding cryptocurrencies. To harness this momentum, Pakistan has earmarked 2,000 megawatts of electricity for Bitcoin mining and announced plans to establish a national Bitcoin reserve. However, this push faces scrutiny from the IMF, which has raised concerns over market distortion risks and the potential for preferential electricity rates to skew the country's power market.

Despite these challenges, Pakistan has made significant strides in regulating the crypto space. In July 2025, the country 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, aimed at fast-tracking blockchain adoption through pilot regulatory sandboxes and stablecoin initiatives.

Pakistan's interest in crypto comes at a time when the country faces steep financing needs. The IMF projects that Pakistan will require more than $100 billion in external funding by 2029 to cover budget and balance-of-payments gaps. This collaboration with El Salvador could provide Pakistan with valuable insights and potential partnerships as it navigates the complexities of integrating digital currencies into its financial system.