Pakistan’s Engro secures $475mn Islamic financing to expand telecom tower portfolio

Engro, one of Pakistan’s largest business conglomerates,  has executed a $475 million (Rs133 billion) transaction—financed entirely through 100% Islamic banking—to grow its telecom infrastructure business, marking one of Pakistan’s largest Shariah-compliant deals.

This funding has enabled the addition of Deodar, and its 10,000+ telecom towers, to Engro’s portfolio, the conglomerate said in a statement on Saturday.

“My congratulations to the Dawood family and Engro, the Islamic bankers and conventional banks, through their Islamic windows, on being able to put together a deal of this size,” said Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, during a celebratory event.

“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.”

He commended the collaborative effort and reiterated the SBP’s vision for digital finance, emphasising the critical role of telecom connectivity in enabling financial inclusion.

According to Engro, shared telecom infrastructure, where a single tower serves multiple mobile network operators (MNOs), offers a cost-efficient model which is essential for Pakistan.

With each tower costing approximately $50,000, shared usage prevents duplication and frees resources for broader development initiatives. Furthermore, by ensuring that critical infrastructure is locally owned, Pakistan strengthens its ability to own and shape its digital future, said the company.

Engro endorsed the support of participating banks, particularly UBL and Meezan Bank.

“We were able to achieve this transaction by demonstrating character-driven leadership,” said Hussain Dawood, Chairman of Engro.