KARACHI, Dec 10 (Alliance News): Engro, Pakistan’s largest conglomerate, is set to expand telecom infrastructure through its strategic partnership with Dutch telecom giant Veon, aiming to enhance tower-sharing coverage and explore innovative use cases.
Samad Dawood, vice chairman of Dawood Hercules, which holds a 40% stake in Engro, highlighted the growth potential in Pakistan’s telecom sector and beyond.
“Pakistan is a very large market in terms of telecom, which keeps growing larger,” Dawood told Reuters. He pointed out that this venture could lead to better utilization of telecom infrastructure domestically and offer opportunities in international markets, spanning from Morocco to Central Asia.
Under the deal, Engro will pay $188 million to Jazz, Veon’s digital operator in Pakistan, and guarantee $375 million of Deodar’s intercompany debt.
The agreement, pending corporate and regulatory approvals, will see Engro managing an expanded portfolio of 14,563 towers, combining its 4,063 existing towers under Engro Enfrashare with Deodar’s 10,500 towers.
The partnership is part of Engro’s strategic restructuring, driven by economic challenges and opportunities. Dawood noted that recent actions, such as a decrease in inflation and interest rates, along with the IMF’s support, have bolstered investor confidence.
In November, Pakistan cut interest rates to 15% from 22% earlier in the year, and inflation dropped to 4.9% from nearly 40% in 2023.
“The incoming macro stability and IMF’s seal of approval has a huge impact on foreign financiers to look at Pakistan as an investable market,” Dawood stated.
