Engro Corp, in partnership with Veon, has announced plans to expand telecom tower-sharing in Pakistan. Critics argue this move risks consolidating telecom infrastructure under foreign influence, threatening industry competition and national interests.
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Under the deal, Engro will pay Jazz (Veon’s digital operator) $188 million while assuming $375 million in debt tied to Deodar, Veon’s tower entity. With Veon’s history of strategic acquisitions and Engro’s restructuring amid economic challenges, industry analysts fear the partnership may prioritize profits over consumer and national interests.
Pakistan’s telecom infrastructure, with 10,500 towers under Veon’s Deodar and 4,063 under Engro Enfrashare, plays a pivotal role in the country’s digital ecosystem. Critics highlight the risks of outsourcing sensitive infrastructure to a foreign entity, especially as Veon eyes expansion across Central Asia and beyond.
The partnership’s proposed “use cases” like EV charging and drone landing further raise concerns about the potential misuse of telecom assets, particularly in a challenging macroeconomic environment.
While Engro cites Pakistan’s improving economic indicators and IMF-backed reforms as reasons for the deal, critics argue that slashing interest rates and inflation does little to counterbalance the risks of foreign control over critical infrastructure.
This deal marks the largest transaction in Pakistani rupee terms for Engro, but at what cost? Critics warn of reduced competition, compromised consumer benefits, and the long-term implications of handing over national telecom assets to international players.
The deal awaits corporate and regulatory approvals. Will Pakistan’s authorities safeguard national telecom interests or let the consolidation proceed unchecked? The industry watches closely.
