Engro Raises $475 Million in Record Islamic Financing to Expand Telecom Tower Network in Pakistan
Engro Corporation has secured $475 million in Shariah-compliant Islamic financing to expand its telecom infrastructure business, marking one of the largest Islamic financing transactions in Pakistan’s history. The landmark deal will significantly increase Engro’s telecom tower footprint and strengthen the country’s digital connectivity infrastructure.
The financing was completed entirely through Islamic banking, highlighting the growing strength and credibility of Shariah-compliant finance in supporting large-scale infrastructure projects.
Engro Acquires Deodar with Over 10,000 Telecom Towers
As part of this transaction, Engro has added Deodar, a company owning more than 10,000 telecom towers, to its business portfolio. Telecom towers are a vital component of mobile and internet networks, enabling connectivity for millions of users across Pakistan.
By expanding its presence in the telecom infrastructure sector, Engro aims to:
Improve nationwide network coverage
Reduce infrastructure costs for operators
Support long-term growth of digital services
State Bank Governor Praises Landmark Islamic Financing Deal
The transaction received strong appreciation from industry leaders and regulators. State Bank of Pakistan Governor Jameel Ahmed congratulated Engro, the Dawood family, and participating banks for successfully completing such a large transaction through Islamic banking.
He noted that the deal reflects rising confidence in Shariah-compliant finance and demonstrates its ability to support complex, high-value projects. The governor also emphasized that robust telecom infrastructure is essential for promoting digital finance and financial inclusion, particularly in underserved regions.
Shared Telecom Infrastructure to Reduce Costs and Boost Coverage
Engro highlighted the importance of shared telecom infrastructure as a cost-effective solution for Pakistan’s telecom sector. Under this model, multiple mobile network operators share a single telecom tower instead of building separate ones.
With each tower costing approximately $50,000, shared usage helps:
Avoid unnecessary duplication
Lower capital and operational expenses
Redirect savings toward expanding services in remote and rural areas
Focus on Local Ownership of Critical Digital Infrastructure
Another key aspect of the transaction is local ownership of strategic telecom assets. Engro emphasized that keeping critical digital infrastructure within Pakistan strengthens national control over the country’s digital future.
Local ownership ensures better alignment with national development priorities and reduces reliance on external players in a sector crucial for economic growth, digital security, and connectivity.
Role of Banks in Structuring the Islamic Financing
Engro acknowledged the support of several financial institutions, particularly United Bank Limited (UBL) and Meezan Bank, for their role in structuring and executing the transaction.
Their participation reflects the increasing capacity of Pakistan’s banking sector to handle large-scale Islamic financing deals, further strengthening the country’s Islamic finance ecosystem.
Engro Chairman Calls Deal a Milestone for Values-Based Leadership
Hussain Dawood, Chairman of Engro, described the transaction as the outcome of principled and character-driven leadership. He said that strong values, combined with close collaboration between corporate leadership and financial institutions, made this landmark financing possible.
A Major Boost for Telecom Growth and Islamic Banking in Pakistan
The $475 million Islamic financing marks a significant milestone for Engro, Pakistan’s telecom sector, and the Islamic banking industry. Beyond expanding infrastructure, the deal sets a powerful example of how Shariah-compliant finance can support national development in a practical, scalable, and impactful way.
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