Engro has successfully completed a landmark Rs. 133 billion transaction financed entirely through Islamic banking, marking a significant milestone in Pakistan’s telecom infrastructure sector. The deal involved the acquisition of Deodar and over 10,000 telecom towers, representing one of the largest Shariah-compliant corporate transactions in the country’s digital infrastructure landscape. This transaction not only reflects the scale of investment required to expand Pakistan’s telecom capabilities but also underscores the growing capacity and sophistication of Islamic financing in supporting high-value corporate projects. Structured through a consortium of banks, including fully Islamic banks and Islamic windows of conventional lenders, the financing illustrates confidence in Shariah-compliant solutions for large-scale infrastructure development.
The acquisition is aligned with Engro’s strategic goal to expand shared telecom infrastructure, a model designed to allow multiple mobile network operators to use a single tower. This approach, officials said, reduces duplication, lowers operational costs, and enables more efficient deployment of telecom services across urban and rural areas. Each tower is estimated to cost around $50,000, highlighting the substantial investment involved in scaling infrastructure to meet rising digital demand. Engro emphasized that the deal also reinforces domestic ownership of critical digital assets, a factor considered crucial for supporting Pakistan’s growing reliance on mobile and digital services. By expanding its tower portfolio, Engro aims to strengthen connectivity, enhance service reliability, and facilitate broader adoption of digital technologies across the country.
An event marking the completion of the transaction was attended by representatives from the participating banks, legal and financial advisers, Engro leadership, and State Bank of Pakistan Governor Jameel Ahmad. Speaking at the ceremony, Governor Ahmad highlighted the strategic importance of telecom infrastructure in advancing financial inclusion and digital finance. He noted that robust connectivity is central to enabling a cashless economy, supporting digital payment platforms, and providing secure, low-cost access to citizens. The involvement of leading financial institutions, including UBL and Meezan Bank, demonstrates the confidence of Pakistan’s banking sector in both the business model and the potential of Islamic financing to deliver large-scale infrastructure projects.
Engro officials further explained that the acquisition supports ongoing efforts to develop shared tower infrastructure that can be utilized efficiently by multiple operators. This model reduces redundancies, encourages cost-effective service delivery, and allows mobile operators to expand coverage more quickly and sustainably. The Deodar towers will integrate with existing infrastructure to provide enhanced connectivity in key regions, addressing both urban and semi-urban network demands. Beyond operational advantages, the transaction reflects a broader trend of integrating ethical, Shariah-compliant financial structures into major infrastructure investments, creating a framework for future projects across the telecom and technology sectors.
The company’s successful deployment of Islamic financing for such a large transaction signals a maturing market for Shariah-compliant corporate deals in Pakistan. By leveraging ethical financial principles, Engro is not only expanding its own footprint in telecom infrastructure but also setting a precedent for future investments that combine commercial viability with socially responsible financing. Officials highlighted that the acquisition will contribute to improving digital access, reducing costs, and supporting the country’s ongoing transition toward a digitally connected economy. The transaction exemplifies how innovative financial solutions and strategic infrastructure development can work in tandem to strengthen Pakistan’s digital ecosystem and accelerate technological adoption nationwide.
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