Pakistan and El Salvador Forge Groundbreaking Crypto Alliance: Bitcoin Mining, IMF Tensions, and a $745M BTC Bet

• Why Are Pakistan and El Salvador Teaming Up on Crypto?
• Pakistan’s Ambitious Bitcoin Mining Plans: 2,000 MW and Counting
• El Salvador’s Bitcoin Playbook: From 6,000 BTC to Global Leadership
• The Regulatory Revolution: Pakistan’s New Crypto Authority
• IMF vs. Crypto: The $100 Billion Elephant in the Room
• What’s Next for the Crypto Alliance?
• Pakistan-El Salvador Crypto Partnership: Your Questions Answered

In a bold move shaking up the crypto world, Pakistan and El Salvador have announced a strategic partnership to collaborate on bitcoin adoption and mining. Pakistan plans to allocate 2,000 MW of electricity for Bitcoin mining and create a national BTC reserve, while El Salvador doubles down on its Bitcoin-first strategy. The IMF has raised concerns, but with 15-20 million Pakistanis already holding crypto, the momentum seems unstoppable. Here’s the inside scoop on this unexpected alliance and what it means for the future of digital assets.

Why Are Pakistan and El Salvador Teaming Up on Crypto?

The recent meeting between Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, and El Salvador’s President Nayib Bukele in San Salvador marks a significant shift in global crypto diplomacy. Both nations are betting big on Bitcoin, but for different reasons. El Salvador, the first country to adopt Bitcoin as legal tender in 2021, sees this as validation of its pioneering strategy. For Pakistan, it’s about leapfrogging into the digital economy despite IMF pressures. The partnership focuses on knowledge sharing, mining infrastructure, and regulatory frameworks—a classic case of "strength in numbers" against traditional financial institutions.

Pakistan’s Ambitious Bitcoin Mining Plans: 2,000 MW and Counting

Pakistan isn’t dipping its toes—it’s diving headfirst into Bitcoin mining. The country plans to dedicate 2,000 megawatts (enough to power ~1.5 million homes) to mining operations, leveraging its excess winter electricity capacity. But there’s a catch: Pakistan’s $7 billion IMF program running through 2027 requires approval for such energy policy shifts. The IMF has already flagged concerns about subsidized electricity for miners distorting energy markets. Ironically, Pakistan’s power grid often has surplus capacity, but preferential crypto mining rates could strain infrastructure. It’s a high-stakes gamble: succeed, and Pakistan could become a mining hub; fail, and it risks IMF backlash during an economic crisis.

El Salvador’s Bitcoin Playbook: From 6,000 BTC to Global Leadership

El Salvador isn’t just advising Pakistan—it’s leading by example. The country’s 6,000 BTC reserve (worth ~$745 million) remains controversial but strategically valuable. Despite IMF restrictions on new BTC purchases, Bukele’s administration continues to innovate, recently launching the "Freedom Visa" program funded by Bitcoin. This partnership allows El Salvador to export its hard-earned crypto governance experience while gaining geopolitical allies. As Bukele tweeted last week: "Bitcoin isn’t just technology—it’s diplomacy."

The Regulatory Revolution: Pakistan’s New Crypto Authority

In July 2025, Pakistan established the VIRTUAL Asset Regulatory Authority (VARA), tasked with licensing exchanges, wallets, and stablecoin issuers. This follows an April 2025 agreement between Pakistan’s Crypto Council and World Liberty Financial (endorsed by former President Trump) to create regulatory sandboxes. The speed of these changes is remarkable—just two years ago, Pakistan’s central bank banned crypto entirely. Now, with 15-20 million citizens already holding digital assets (per Saqib), regulation isn’t just policy—it’s political survival.

IMF vs. Crypto: The $100 Billion Elephant in the Room

The IMF estimates Pakistan needs $100+ billion in external financing by 2029. Its current program prohibits risky monetary experiments—hence the tension over crypto ambitions. The Fund worries crypto subsidies could destabilize Pakistan’s fragile economy, already plagued by inflation and debt. But with crypto adoption surging nationwide, the government faces pressure to deliver alternatives. As one analyst on TradingView noted: "This isn’t just about Bitcoin—it’s about Pakistan rewriting its economic script."

What’s Next for the Crypto Alliance?

Both countries face hurdles. El Salvador must navigate IMF restrictions while proving its BTC reserves are strategic assets, not gambles. Pakistan needs to balance crypto growth with economic recovery—no small feat. Yet their collaboration signals a broader trend: nations bypassing traditional finance to build digital asset ecosystems. As Saqib stated: "We’re not just adopting crypto; we’re building the future of sovereign finance."