Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Pakistan and Kyrgyzstan have taken another step toward closer ties in crypto and blockchain. According to reports, the two countries held a high-level virtual meeting this month.

Bilal Bin Saqib, Pakistan’s Minister of State for Crypto and Blockchain, spoke with Farkhat Aminov, Director of Kyrgyzstan’s National Investment Agency. They agreed to share know-how on digital finance, build joint rules for virtual assets, and push blockchain projects together.

Deepening Crypto Ties

Reports have disclosed that Pakistan wants a formal deal. The country has proposed a Memorandum of Understanding to cement cooperation in the crypto sector.

Pakistan formed its Pakistan Crypto Council after appointing Bin Saqib as special adviser to Finance Minister Muhammed Aurangzeb. Bin Saqib now serves as CEO of the Council, while Aurangzeb acts as its chairman.

Last month, US President Donald Trump signed off on Pakistan’s Virtual Assets Ordinance, 2025. That law sets up an independent regulator for cryptocurrencies and virtual assets.

Bitcoin pioneer Michael Saylor praised Pakistan’s steps. He called it a sign that the country knows how to handle this new market.

Reports have also highlighted plans for joint work on blockchain research. Both sides want to run training sessions, share studies, and test new finance tools.

They talked about regulatory checklists, digital wallets, and how to protect investors. They agreed to meet again soon to iron out details and draft the MoU.

Strengthening Trade Links

Bilateral trade is already on the agenda. According to the Press Information Department of Pakistan, officials aim to boost annual trade volume to $100 million.

In the fifth session of their Inter-Governmental Commission on Trade, both sides signed several economic and technical cooperation protocols. They want more exports, fresh imports, and revived joint business councils. They will hold trade fairs, B2B meetings, and business forums to spur deals.

Reports say the two governments plan to improve regional routes. They will work on postal services, air links, rail lines, and cargo roads. Both sides see better transport as key to linking landlocked Kyrgyzstan with Pakistan’s ports.

Based on reports, the next move is the formal MoU on crypto cooperation. Once signed, it will bind both governments to a shared rulebook. They hope that a clear law will attract global investors and protect local users.

The Virtual Assets Ordinance, 2025, will guide that process. It spells out licensing rules, audit needs, and penalties for fraud.

Featured image from Vecteezy, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Pakistan and El Salvador have formalized diplomatic relations for the first time, anchoring the partnership on crypto collaboration and digital asset development, according to a July 16 announcement.

The presser followed a meeting in San Salvador between Bilal Bin Saqib, special assistant to Pakistan’s prime minister on crypto and blockchain, and El Salvador’s President Nayib Bukele.

Saqib also heads the Pakistan Crypto Council, which has played a key role in shaping the country’s emerging digital asset strategy.

According to a statement from Pakistan’s ministerial office, the two nations agreed to share expertise and build cooperation on blockchain policy.

This marks a significant step for Pakistan as it embraces crypto technology despite constraints under its loan program with the International Monetary Fund.

The South Asian country is currently operating under a $7 billion IMF facility that runs until 2027. While the country seeks to remain compliant with its obligations, the government is simultaneously advancing a broad crypto agenda.

That includes setting aside 2,000 megawatts of power for Bitcoin mining, planning a national Bitcoin (BTC) reserve, and launching the Pakistan Digital Assets Authority in May to oversee crypto regulation.

Saqib’s visit also builds on a letter of intent signed earlier this year between the Pakistan Crypto Council and World Liberty Financial, a firm linked to the Trump family, aiming to accelerate blockchain adoption across the country.

El Salvador, which adopted Bitcoin as legal tender in 2021, has emerged as a global pioneer in crypto policy under Bukele’s leadership. To date, the country has accumulated over 6,000 Bitcoins, and its crypto treasury is estimated at over $700 million.

Despite international scrutiny, particularly from the IMF, El Salvador has continued to promote digital assets as part of its national strategy, an approach that now appears to be influencing Pakistan’s evolving financial policy.

Crypto remains popular in Pakistan despite regulatory uncertainty. Estimates suggest that between 20 million to 40 million Pakistanis either hold some form of digital currency or have interacted with digital assets for their financial needs.

As the country faces growing fiscal pressures and seeks new avenues for innovation and growth, its partnership with El Salvador may signal a strategic pivot toward a blockchain-driven economic future.

Mentioned in this article

Michael Saylor, the billionaire Bitcoin advocate and executive chairman of Strategy, is backing Pakistan’s state-led Bitcoin pivot, according to new footage and media reports emerging from Islamabad.

A call with top officials marks the latest escalation in Pakistan’s plan to formalize a Strategic Bitcoin Reserve (SBR).

The video footage, posted on X by Finance Ministry media officer Hamid Raza Wattoo, shows Saylor with Finance Minister Muhammad Aurangzeb and Minister of State for Blockchain and Crypto Bilal Bin Saqib. The meetings follow Pakistan’s public announcement of the SBR on 28 May at the Bitcoin 2025 conference in Las Vegas.

Saylor’s outreach aligns with his long-standing call for sovereign Bitcoin reserves. While he has previously lobbied U.S. policymakers to adopt a Bitcoin strategy, his Islamabad support signals an interest in showcasing Pakistan as a geopolitical proof of concept. He is reportedly becoming an official advisor to the government’s Bitcoin reserve plan via the Pakistan Crypto Council.

Binance founder Changpeng “CZ” Zhao was also appointed a strategic adviser to the council in early April. His remit includes steering blockchain infrastructure, shaping the regulatory framework, and mentoring national digital-asset initiatives. This gives Islamabad a direct line to the world’s largest exchange as it pursues the Bitcoin reserve plan.

Pakistan’s reserve plan, championed by Bin Saqib, was introduced as a state initiative with plans to acquire Bitcoin using state assets and mine additional BTC using domestic energy resources. The Pakistan Crypto Council (PCC), which Bin Saqib also leads, has proposed allocating up to 2 GW of surplus energy to power mining facilities and data centers.

IMF tensions and energy politics

The plan has sparked tensions with international lenders. The IMF raised concerns about grid stress and fiscal strain if 2 GW were diverted for mining. Pakistan is currently seeking a new bailout agreement, and its power infrastructure is considered fragile.

Despite this, the PCC has continued promoting the reserve as a path toward “digital non-alignment”, leveraging Bitcoin to reduce dependence on the U.S. dollar and traditional credit channels. A PCC delegation even pitched the reserve to Donald Trump’s crypto-aligned economic team on 4 June in Washington.

Pakistan’s crypto policy remains complex. While the reserve is government-led, general crypto trading remains technically illegal under the State Bank of Pakistan (SBP) guidelines. The government is reportedly preparing a Digital Assets Authority bill, which may offer legal clarity when Parliament’s Standing Committee on Finance reconvenes.

Regional analysts are also watching closely. Pakistan’s pivot could ripple across South Asia. However, the move could unsettle major creditors like China, which has poured billions into Pakistan’s energy sector through the China-Pakistan Economic Corridor (CPEC).

What’s next?

It remains to be seen how Saylor plans to assist in an ongoing role in implementing the reserve and whether he will be working directly with CZ.

In the meantime, the SBR initiative is advancing quickly. With a sovereign reserve, surplus energy, and now the world’s most prominent Bitcoin evangelist in the picture, Pakistan is testing whether a fragile economy can hedge its bets with digital gold.

Mentioned in this article

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Pakistan’s sprint toward a state-level Bitcoin strategy has drawn an influential new ally. On Sunday, June 15, entrepreneur-turned-Bitcoin evangelist Michael Saylor held a video meeting with Finance Minister Muhammad Aurangzeb and Minister of State for Blockchain and Crypto Bilal Bin Saqib to explore how the world’s oldest cryptocurrency could sit inside the country’s sovereign reserves. The Finance Ministry described the conversation as a “milestone” in Pakistan’s digital-assets agenda, and Saylor, whose firm Strategy holds the world’s largest corporate Bitcoin treasury, offered to continue “in an advisory capacity.”

Michael Saylor Joins Pakistan’s Bitcoin Pivot

According to the press note seen by local media Dawn, discussion centred on whether Bitcoin can underpin monetary resilience in an economy that has long relied on dollar liquidity and IMF balance-of-payments support. Saylor, credited with turning a mid-tier software vendor into a $100-billion market-cap vehicle for Bitcoin exposure, framed the asset as “the strongest instrument for long-term national resilience.” He argued that Pakistan can seize a “once-in-a-generation opportunity to leapfrog into the future of finance,” echoing his thesis that digital scarcity is an antidote to fiat debasement.

The video feed, later posted to X by Finance-Ministry media chief Hamid Raza Wattoo and widely circulated by crypto outlets, captured Saylor linking capital flows to reputational credibility. “The most important thing is leadership — intellectual leadership — and that they trust you,” he told Aurangzeb and Saqib. “If the world trusts you and they hear your words … the capital and the capability will flow to Pakistan. It’s there; it wants to find a home.” He closed by saying, “I look forward to working with you.”

Aurangzeb, who heads the newly created Pakistan Crypto Council (PCC), responded that Islamabad “aspires to lead the Global South in the development and adoption of digital assets, setting a benchmark for innovation, regulation and inclusive growth.” Saqib called Saylor’s trajectory proof that Bitcoin now carries “sovereign-grade” status. “If private individuals can build that in the US, why can’t Pakistan, as a nation, do the same? We have the talent, the story, and the energy,” he said.

Saylor’s credibility in the role is anchored in Strategy’s 582,000-Bitcoin cache, currently valued at roughly $61 billion, amassed through successive equity and debt offerings since 2020. His endorsement comes as Pakistan tries to codify rules for custody, mining and taxation. The PCC, launched in March, has already formed a technical committee for a draft Digital-Assets Act and is coordinating with the State Bank of Pakistan, the Securities and Exchange Commission and the Financial Action Task Force. Parallel legislation would create the Pakistan Virtual Assets Regulatory Authority (PVARA) as an umbrella watchdog.

Yet the legal landscape is still contested. Only two weeks ago, senior State Bank officials reminded lawmakers that “cryptocurrency remains banned” under existing directives and that enforcement cases are being forwarded to law-enforcement agencies. The juxtaposition of an official Bitcoin reserve with a de jure ban has produced what Dawn characterised as a “policy in disarray.”

Pakistan’s political leadership has nevertheless accelerated operational plans. In late May Saqib unveiled a state-managed Bitcoin cold wallet at the Bitcoin 2025 conference in Las Vegas and secured Cabinet approval to dedicate 2,000 megawatts of surplus power for Bitcoin mining and AI data-centre workloads. The capital-hungry energy policy is seen in Islamabad as a way to monetise excess generation capacity while building a strategic stockpile of BTC that could, in theory, diversify external reserves currently dominated by dollars and gold.

Saylor’s expected advisory remit has not yet been formalised, and neither side disclosed whether Strategy would take a commercial stake. But the meeting underscores Pakistan’s intent to import not just technology but also intellectual capital. Saqib, fresh from a US roadshow that included talks with New York City Mayor Eric Adams and the New York Crypto Council, noted that “Pakistan is establishing itself as a key player in the global cryptocurrency economy and setting trends rather than following them.”

For now, the largest obstacle remains regulatory coherence. A sovereign Bitcoin reserve, ministerial advocacy and Saylor’s star power have vaulted Pakistan into the global spotlight, but a statutory framework acceptable to both domestic regulators and the IMF will determine whether the country can convert momentum into durable policy.

At press time, BTC traded at $106,613.

Featured image created with DALL.E, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Less than a week after Pakistan unveiled a plan to channel 2,000 megawatts of surplus electricity into Bitcoin mines and artificial-intelligence data centres, the International Monetary Fund has asked Islamabad authorities for “urgent clarification” and scheduled a stand-alone virtual meeting with the Finance Ministry to discuss the power allocation.

The request lands in the middle of negotiations on Pakistan’s 2025/26 budget and only days after the country drew a second disbursement—SDR 760 million ($1.02 billion)—under its $7 billion Extended Fund Facility, bringing total IMF cash received this year to roughly $2 billion. The Fund has also approved a parallel $1.4 billion climate-resilience programme, deepening Islamabad’s reliance on multilateral finance at a moment when its external-debt maturities exceed $22 billion for the coming fiscal year, according to Fitch Ratings.

An official involved in the IMF talks admitted that the mining announcement has complicated the lender’s due-diligence. “There is a fear of further tough talks from the IMF on this initiative,” the official told Samaa. “The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks.”

Why Nation-State Bitcoin Mining In Pakistan Seems Unlikely

Daniel Batten, the New Zealand–based climate tech investor whose modelling on Bitcoin’s energy profile is widely cited in policy debates, argues that Pakistan now finds itself on the same collision course that derailed crypto ambitions in other debtor countries. “While I’m an optimist by nature and I really hope I’m wrong, I think Pakistan will struggle to follow through on its Bitcoin and Bitcoin-mining plans,” he wrote on X. “Short answer why: IMF.”

Expanding on that point, Batten listed what he calls the Fund’s “five-fold exposure”: Bitcoin can lower remittance costs, dilute seigniorage advantages, provide an alternative store of value for foreign-exchange reserves, reduce reliance on multilateral lending and create peer-to-peer rails that sidestep capital-controls architecture. “Bitcoin is a huge threat to IMF in five ways,” he said.

The analyst then turned to precedent. “IMF has already scuttled or pared back the ambitions of three out of three nations with Bitcoin adoption plans,” he noted, citing the Central African Republic’s stalled legal-tender implementation, Argentina’s agreement to anti-crypto conditions and the incremental revisions El Salvador made to its Bitcoin Law. “Highly likely we’ll see the same tactics with Pakistan. Given Pakistan’s economic vulnerabilities, it’s also likely IMF will be successful.”

According to Batten, the Fund’s first step will be a communications campaign emphasising “energy shortages,” “high electricity costs,” “unclear crypto regulations” and “AML concerns” as reasons for caution—arguments he dismisses as “made-up.” In his view, peer-reviewed research shows Bitcoin mining can strengthen grid reliability by monetising excess supply, while case studies such as Bhutan and El Salvador demonstrate the currency’s potential to foster economic self-reliance. “However, economic self-reliance reduces the customer-base for IMF as a lender, and is therefore not in its economic interests,” he wrote.

Batten adds that the leverage available to the Fund under its $7 billion Extended Fund Facility gives it ample room to translate warnings into programme conditions. He predicts the IMF will demand Financial Action Task Force-compliant rules, prohibit sovereign Bitcoin accumulation and tie future disbursements to policy reversals, “exploiting Pakistan’s dependence on funding to maintain reserves and meet existing IMF loan obligations.”

That dependence is stark. Batten points out that Pakistan faces $12.7 billion in debt repayments in fiscal 2025. Without IMF support, foreign-exchange reserves could slip below $4 billion—less than a month of imports—echoing the January 2023 balance-of-payments crisis, when reserves fell to $2.92 billion and the rupee’s slide accelerated from PKR 100 to 330 per dollar between 2017 and today. “This could trigger default on other obligations, given Pakistan’s history of FATF grey-listing and reliance on multilateral funding,” he warns.

The stakes, Batten argues, extend beyond Pakistan. “It means the gloves are off: IMF is terrified of Bitcoin breaking up its debt hegemony party, and will continue to stand in the way of Bitcoin adoption at a nation-state level,” he wrote. Should Islamabad retreat under pressure, the Fund would register what Batten calls a “4/4 track record” of blocking Bitcoin initiatives in debtor nations—evidence, he says, of a broader strategy to “oppose Bitcoin adoption from its indebted customers.”

His conclusion is blunt: “If you have a disruptive technology, don’t expect the ‘disrupted’ to stand idly by. They will use every technique at their disposal to preserve the monopoly they’ve enjoyed.” For governments intent on pursuing Bitcoin, Batten sees only two viable paths: “Be like Bhutan or the US, who don’t need the IMF, or have a backup lending plan in place so the IMF can’t pressure you into rolling back your policies and plans.”

At press time, BTC traded at $105,335.

Featured image created with DALL.E, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Author

Jai Pratap

Author

Jai Pratap

About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Share

Last updated: 

May 29, 2025

Despite increasing government-backed initiatives promoting Bitcoin adoption, Pakistan’s top financial authorities the State Bank and Ministry of Finance clarified on Thursday that cryptocurrency remains banned, with all related transactions deemed illegal under existing laws.

As per local media reports, during a recent meeting official meeting on Finance and Revenue, Finance Secretary Imdadullah Bosal clarified that although the prime minister has established a Crypto Council, led by the finance minister through an executive order to explore digital asset policy, the country’s cryptocurrency ban remains firmly in place under regulations set by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP)

The central bank issued a directive in 2024 declaring Bitcoin and other cryptocurrencies illegal, a position that remains unchanged.

Pakistan’s Crypto Council CEO Bilal Bin Saqib, who was recently named as PM’s assistant on crypto and blockchain, announced at the Bitcoin 2025 conference in Las Vegas that the country is moving ahead with a Bitcoin reserve.

Officials Highlight Crypto Policy Inconsistency

Committee members voiced concern over the government’s inconsistency in regards to crypto policy, questioning why the public was being encouraged to invest in crypto despite its legal ban, warning that such actions could expose investors to serious risks.

Recently Pakistan’s government announced to allocate 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence (AI) data centres. Committee members raised questions about whether the bitcoin mining would be in government or private sector hands, and noted that illegal hawala channels would likely be replaced by unregulated digital transfers.

The State Bank of Pakistan does not recognize crypto assets. In 2022, the SBP issued an official advisory urging the public to exercise caution and avoid trading in cryptocurrencies.

The committee’s debate on cryptocurrency was sparked by a proposed bill on digital currency regulations introduced by MNA Sharmila Farooqi. She emphasized the urgent need for a regulatory framework to curb potential money laundering risks, particularly in light of Pakistan’s recent removal from the Financial Action Task Force (FATF) grey list.