Pakistan’s electronics manufacturing sector received a major boost after a consortium of financial institutions completed the financial close of a PKR 4.76 billion Islamic Syndicated Term Finance Facility for Air Link Communication Limited and Select Technologies Limited.
The 10-year financing arrangement was managed by The Bank of Punjab with the support of InfraZamin Pakistan Limited. The financing is expected to strengthen local production of smartphones, consumer electronics, and home appliances. As a result, the project will also contribute to Pakistan’s industrialization and import substitution goals.
Consortium completes landmark Islamic financing
The financing consortium includes The Bank of Punjab, Askari Bank Limited, BankIslami Pakistan Limited, and Pak China Investment Company Limited. All four institutions acted as Mandated Lead Advisors and Arrangers (MLAAs).
Meanwhile, InfraZamin Pakistan Limited provided a PKR 3.57 billion credit guarantee. This guarantee made it possible to secure a 10-year financing facility. It also improved pricing and enabled an extended financing tenure for the project.
In addition, The Bank of Punjab served as the Intercreditor Agent, Investment Agent, Security Agent, Account Bank, and Shariah Advisor throughout the transaction.
Expansion planned at Sundar Green Special Economic Zone
The financing will support the expansion of advanced manufacturing facilities at the Sundar Green Special Economic Zone.
Once completed, the facilities will increase local production of smartphones, consumer electronics, and home appliances. Consequently, the investment will reduce reliance on imported products while supporting domestic manufacturing.
Furthermore, the project aligns with Pakistan’s industrial development strategy by encouraging local value addition and strengthening the country’s manufacturing ecosystem.
Project to create jobs and support clean energy
The investment is expected to manufacture more than one million affordable smartphones annually. Therefore, it could improve digital access and internet connectivity across Pakistan.
The project is also expected to create nearly 450 direct jobs within five years of construction. Around 25 to 30 percent of these positions will be reserved for women. This approach aims to increase female participation in Pakistan’s manufacturing workforce.
Moreover, the project includes plans for a 1 MW solar power plant. The facility is expected to reduce carbon emissions by approximately 700 tonnes each year. At the same time, it will lower operating costs and promote a cleaner energy mix.
Air Link and Select Technologies continue manufacturing expansion
Air Link Communication Limited is a leading company in Pakistan’s technology and consumer electronics industry. The company distributes, retails, and manufactures mobile phones and electronic products.
It has partnerships with several global brands, including Samsung, Apple as an authorized reseller, Xiaomi, Techno, Itel, Acer, and iMiki.
Its wholly owned subsidiary, Select Technologies Limited, focuses on manufacturing smartphones and consumer appliances within Pakistan.
The company manufactures Xiaomi smartphones, Xiaomi LED televisions, Hisense air conditioners, and Hisense LED televisions through partnerships with Xiaomi and Hisense.
Notably, the financing follows Select Technologies’ successful Initial Public Offering (IPO), reflecting investor confidence in Pakistan’s growing consumer electronics manufacturing sector.
Air Link CEO highlights manufacturing and employment goals
Commenting on the financing, Muzzaffar Hayat Piracha, Chief Executive Officer of Air Link Communication Limited, said:
“Airlink and Select Technologies are working to advance the ‘Made in Pakistan’ agenda. The ten-year financing facility, backed by an InfraZamin credit guarantee, will play a pivotal role in driving innovation, introducing more products, and, above all, creating direct and indirect job opportunities for Pakistan’s youth, especially women.”
He added:
“We are thankful to InfraZamin, Bank of Punjab, which served as the Lead Advisor on this transaction, and to the syndicate members comprising Bank of Punjab, BankIslami, Askari Bank, and Pak China Investment Company for their trust and support.”
InfraZamin sees long-term economic benefits
Maheen Rahman, Chief Executive Officer of InfraZamin Pakistan Limited, said:
“We are pleased to partner with Airlink and Select Technologies to support their expansion plans to enhance local manufacturing of digital and electronic equipment. The facility will expand jobs, enhance digital inclusion and create potential for export. We are grateful to our financing partners the Bank of Punjab, Askari Bank, BankIslami, and Pak China Investment Company in their support of this landmark investment. Together, we are enabling the expansion of local manufacturing, creating quality employment, advancing digital inclusion, and contributing to a more resilient and sustainable economy.”
Banking partners call transaction a milestone
Muhammad Mateen Farooq, Head – Investment Banking at The Bank of Punjab, said:
“The successful completion of this transaction marks an important milestone for all stakeholders and demonstrates the value of collaboration among financial institutions, advisors, and industry partners in delivering innovative financing solutions. I would like to extend my sincere appreciation to Air Link Communication Limited, Select Technologies Limited, the participating MLAAs, and InfraZamin Pakistan Limited. This transaction will support the establishment of a state-of-the-art manufacturing facility that is expected to strengthen Pakistan’s consumer electronics manufacturing ecosystem and enhance access to locally manufactured products. This financing establishes a new benchmark for the sector and showcases how credit enhancement structures can facilitate long-term capital for strategic industrial investments.”
Syed Muhammad Danial Shah, Head – Investment Banking at Askari Bank Limited, said:
“This transaction reflects the growing role of blended finance in supporting strategic industrial investments through the mobilization of long-term private capital. The credit enhancement provided through InfraZamin Pakistan’s guarantee was instrumental in strengthening the transaction’s credit profile, enabling the participating financial institutions to mobilize long-term capital under a blended finance structure. It highlights the effectiveness of innovative risk-sharing mechanisms and strategic partnerships between commercial banks and development finance institutions in unlocking private sector investment and advancing sustainable economic development.”
He further added:
“At Askari Bank, we remain committed to delivering innovative and sustainable financing solutions that address our clients’ long-term investment requirements while contributing to industrial growth, economic resilience, and financial sector development. We are committed to working alongside participating financial institutions and InfraZamin Pakistan in structuring a landmark financing solution that demonstrates the growing potential of blended finance as a catalyst for private capital mobilization and sustainable development in Pakistan.”
Khurrum Nadeem, Head – Investment Banking at Pak China Investment Company Limited, said:
“We are proud to support Airlink Group’s expansion, aimed at strengthening local manufacturing, creating employment opportunities and facilitating technology transfer through partnerships with leading Chinese manufacturers. InfraZamin’s guarantee has played a commendable role in enabling private sector financing and supporting Pakistan’s industrial growth.”
Syed Ali Hasham, Head – Investment Banking Group at BankIslami Pakistan Limited, said:
“This landmark transaction demonstrates the power of Shariah-compliant innovation in mobilizing long-term capital for strategic industrial investments. As a Mandated Lead Arranger, BankIslami is proud to contribute to assist in structuring this facility alongside with Bank of Punjab in full alignment with Islamic principles, while enabling Airlink and Select Technologies to expand local manufacturing, create employment opportunities, and advance technology transfer. The InfraZamin’s guarantee has been instrumental in extending financing tenors under a blended finance framework, ensuring that this transaction sets a new benchmark for Islamic syndicated financing in Pakistan. BankIslami remains committed to pioneering innovative Islamic financing solutions that strengthen Pakistan’s industrial base, foster resilience, and drive sustainable economic development.”
The transaction reinforces the participating institutions’ commitment to mobilizing private capital for strategic industrial investments. Additionally, it highlights continued efforts to strengthen Pakistan’s manufacturing sector through innovative Islamic financing solutions.
