Bitcoin Diplomacy: Pakistan and El Salvador Forge Crypto Alliance

Pakistan and El Salvador have launched their first formal bilateral relationship, and they’re building it around Bitcoin, which recently hit its all-time high above $120,000.

The unexpected alliance by both the countries displays growing defiance of international financial orthodoxy and their shared belief in cryptocurrency as a tool for economic transformation.

At the heart of this crypto-centric is Bilal Bin Saqib, the chief executive of the Pakistan Crypto Council and special assistant to the Prime Minister on crypto and blockchain.

Saqib met with President Nayib Bukele in San Salvador this week to establish a joint framework for knowledge sharing and policy development around Bitcoin.

El Salvador, the first country to adopt Bitcoin as legal tender, has become a global symbol of crypto-driven governance, and now, Pakistan is taking a page from its playbook.

Saqib, in a (formerly Twitter), called Bukele “a leader from the future, who saw the future first,” praising his commitment to Bitcoin “when it wasn’t cool.” He added:

The meeting resulted in a Letter of Intent between El Salvador’s Bitcoin Office and the Pakistan Crypto Council, forming a roadmap for collaboration on public sector crypto adoption, blockchain-powered financial inclusion, and policy tailored to emerging economies.

In May, the country 2,000 megawatts of surplus electricity, largely from coal-fired plants to power Bitcoin mining and AI infrastructure. That move, led by the Pakistan Crypto Council and supported by the Ministry of Finance, forms part of a broader digital transformation strategy.

The country also the Pakistan Digital Asset Authority, a new regulatory body to oversee its fast-growing $25 billion crypto market. Reports estimate that between 15 and 20 million Pakistanis already hold digital assets.

Pakistan’s ambitions also include , similar to El Salvador’s approach. Bukele’s government holds over 6,240 BTC, currently worth nearly $745 million, and has mined hundreds more using geothermal energy.

El Salvador’s Bitcoin position remains in profit by over $350 million, even after a temporary pause in public-sector acquisitions to comply with IMF terms.