Engro Corp, Pakistan’s largest conglomerate, aims to expand telecom tower-sharing services in Pakistan through its strategic collaboration with Veon. The companies are set to broaden their infrastructure coverage, targeting additional operators and exploring applications like electric vehicle (EV) charging and drone landing facilities.
Samad Dawood, vice chairman of Dawood Hercules Corp—Engro’s parent company with a 40% stake—emphasized Pakistan’s growing telecom market. “This business model allows for better utilization of telecom infrastructure in Pakistan and can eventually cater to international markets,” Dawood told Reuters, highlighting regions from Morocco to Central Asia as potential markets.
Last week, Engro and Dutch telecom operator Veon announced their plan to consolidate and manage telecom assets in Pakistan. Under this partnership, Engro will pay $188 million to Jazz, Veon’s digital operator in Pakistan, and guarantee the repayment of $375 million in intercompany debt owed by Deodar, Veon’s tower subsidiary.
Deodar operates 10,500 towers in Pakistan, while Engro Enfrashare, Engro’s infrastructure arm, owns 4,063 towers, as per Topline Securities. The agreement is pending corporate and regulatory approval.
This deal, Engro’s largest in rupee terms, reflects a shift in the macroeconomic environment. Dawood noted that Pakistan’s recent measures for economic stability—like completing IMF bailout programs and reducing interest rates—have created favorable conditions for this expansion.
In November, Pakistan lowered its interest rate to 15% from a record 22%, and inflation fell to 4.9%, a significant drop from 2023’s peak of nearly 40%. “These developments, along with the IMF’s backing, have bolstered foreign investors’ confidence in Pakistan,” Dawood added.
