Pakistan and El Salvador have established formal diplomatic relations for the first time, placing cooperation on cryptocurrencies and blockchain technology at the heart of the new partnership. Bilal Bin Saqib, head of Pakistan’s Crypto Council and special assistant to the prime minister, met President Nayib Bukele in San Salvador to agree on an exchange-of-knowledge framework, according to a statement from Islamabad. The initiative comes as Pakistan seeks to develop a regulated digital-assets industry while remaining within the terms of its US$7 billion International Monetary Fund programme running through 2027. In May, Islamabad set up the Digital Assets Authority and earmarked 2,000 megawatts of power for bitcoin mining, moves inspired in part by El Salvador’s earlier embrace of the sector. Bukele’s government made bitcoin legal tender in 2021 and says it continues to accumulate the token despite IMF concerns, holding 6,238 bitcoins worth roughly US$745 million at current prices. By drawing on El Salvador’s experience, Pakistan aims to craft policies that encourage crypto investment and payments while navigating external financing constraints and domestic regulatory scrutiny.