Engro completes Rs133bn all-Islamic financing deal

KARACHI: Engro Corporation has completed a Rs133 billion transaction structured entirely through Islamic financing, marking one of Pakistan’s largest Shariah-compliant deals and a significant step in the country’s digital and financial transformation.

The financing has enabled Engro to expand its telecom infrastructure vertical through the addition of Deodar, along with its network of more than 10,000 telecom towers, to the group’s portfolio. The development aligns with Pakistan’s objective of transitioning towards a fully Islamic banking system while strengthening digital connectivity nationwide.

A ceremony to mark the transaction was attended by senior executives of participating banks, legal and financial advisors, Engro management, and State Bank of Pakistan Governor Jameel Ahmed. Addressing the gathering, the central bank governor commended the collaborative effort behind the deal and reiterated the State Bank’s vision for digital finance, stressing that telecom connectivity plays a vital role in promoting financial inclusion. He also acknowledged the conviction of Engro’s leadership, particularly the Dawood family, in ensuring that the transaction was structured entirely through Islamic banking.

Engro officials said the transaction supports the company’s vision of digital sovereignty and more efficient utilization of national economic resources. They explained that shared telecom infrastructure, where a single tower serves multiple mobile network operators, offers a cost-effective model for Pakistan by preventing duplication and freeing capital for broader development initiatives. With the cost of each tower estimated at around $50,000, shared usage significantly improves economic efficiency. They added that local ownership of critical infrastructure strengthens Pakistan’s ability to shape and control its digital future.

The transaction also reflects the growing depth and maturity of Islamic financing in Pakistan. Engro noted that the strong support of participating banks, including United Bank Limited and Meezan Bank, demonstrated the strength of their long-standing relationships and their collective commitment to advancing Shariah-compliant financial solutions.

Engro Chairman Hussain Dawood said the successful completion of the transaction was made possible through principled, character-driven leadership, attributing the achievement to faith, conviction and a supportive environment.

Engro said the landmark deal underscores its commitment to national priorities and progress and expressed gratitude to all partners involved in the transaction, reaffirming its role in advancing Pakistan’s digital and financial transformation.

Copyright Business Recorder, 2025