Engro Secures $475 Million Islamic Financing to Expand Telecom Towers

Engro, one of Pakistan’s leading business groups, has secured Islamic financing worth $475 million to expand its telecom infrastructure business. This major transaction, completed entirely through Shariah-compliant banking, is one of the largest Islamic financing deals in the country’s history. The funding will allow Engro to significantly grow its telecom tower portfolio and strengthen Pakistan’s digital backbone.

Through this financing, Engro has added Deodar, a company that owns more than 10,000 telecom towers, to its portfolio. These towers are a critical part of mobile and internet connectivity, as they support the networks used by millions of people across the country. By expanding its presence in this sector, Engro aims to improve coverage, reduce costs, and support the long-term growth of digital services in Pakistan.

Engro Secures $475 Million Islamic Financing to Expand Telecom Towers

The industry leaders and regulators widely praised the transaction. The Governor of the State Bank of Pakistan, Jameel Ahmed, congratulated Engro, the Dawood family, and the participating banks for completing a deal of this size through Islamic banking. He highlighted that such initiatives reflect growing confidence in Shariah-compliant finance and demonstrate its ability to support large-scale, complex projects. He also emphasized that strong telecom infrastructure plays a key role in promoting digital finance and financial inclusion, especially in underserved areas.

Engro has stressed the importance of shared telecom infrastructure as a cost-effective solution for Pakistan. In this model, multiple mobile network operators use a single telecom tower instead of each operator building its own tower. Since each tower costs around $50,000, shared usage helps avoid unnecessary duplication. This approach saves capital, lowers operational costs, and allows resources to be directed toward other development priorities, such as expanding services to remote regions.

Another key aspect highlighted by Engro is local ownership of critical infrastructure. By keeping telecom assets within the country, Pakistan strengthens its ability to manage and shape its digital future. Local control over infrastructure ensures better alignment with national priorities and reduces dependence on external players in a sector that is vital for economic growth and security.

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The success of the transaction was made possible through the support of several banks, with Engro specifically acknowledging the role of United Bank Limited (UBL) and Meezan Bank. Their participation reflects the growing capacity of Pakistan’s banking sector to structure and execute large Islamic financing deals.

Hussain Dawood, Chairman of Engro, described the transaction as a result of principled and character-driven leadership. He noted that strong values, combined with collaboration between corporate leadership and financial institutions, made it possible to complete this landmark deal.

Overall, this financing marks an important step for Engro, the telecom sector, and Islamic banking in Pakistan. It not only supports infrastructure growth but also sets a strong example of how Shariah-compliant finance can contribute to national development in a practical and impactful way.