In a landmark move for Pakistan's financial and digital sectors, Engro Corporation has successfully concluded a massive transaction valued at Rs133 billion, financed entirely through Islamic banking principles. This historic deal marks a significant step in expanding the nation's telecom infrastructure and underscores a major shift towards Shariah-compliant finance.
A Milestone for Islamic Banking and Digital Sovereignty
The transaction facilitated the acquisition of Deodar and its portfolio of over 10,000 telecom towers into Engro's fold. This achievement was celebrated at an event attended by key stakeholders, including presidents of participating banks, legal and financial advisors, Engro's leadership, and the Governor of the State Bank of Pakistan (SBP), Jameel Ahmed.
Governor Ahmed praised the collaborative effort, highlighting it as a testament to the growing depth of Islamic finance in Pakistan. He specifically congratulated the Dawood family, Engro, and the Islamic banking teams. "This is a great achievement which has been supported by the banks – but is also owed to the conviction of Hussain Dawood and his family in getting it funded through Islamic banking," the SBP Governor remarked.
Strategic Impact on Telecom and Economy
Engro's leadership emphasized that this move is more than a financial transaction; it's a strategic leap toward digital sovereignty and optimal resource utilization. The model of shared telecom infrastructure, where a single tower serves multiple mobile network operators (MNOs), presents a highly cost-efficient solution for Pakistan.
With each tower costing around USD 50,000, this shared approach prevents costly duplication of infrastructure. It allows capital to be redirected towards other vital development projects. Crucially, by ensuring critical digital assets like telecom towers are locally owned, Pakistan strengthens its control over its digital future and economic destiny.
Demonstrating the Strength of Islamic Finance
The sheer scale of this Rs133 billion deal, structured purely on Islamic principles, showcases the maturity and potential of Pakistan's Shariah-compliant financial market. The transaction received unwavering support from leading financial institutions, with UBL and Meezan Bank playing particularly pivotal roles. Their participation underscores strong, long-term relationships with Engro and a collective commitment to advancing ethical financial solutions that align with the nation's goal of transitioning fully to an Islamic banking system.
This deal sets a powerful precedent, proving that large-scale corporate financing for essential national infrastructure can be successfully executed through Islamic modes, driving both digital transformation and financial inclusion in Pakistan.
