Pakistan’s latest Trump bet is on drone firm already selling to India

Islamabad, Pakistan – On September ۱۶, a delegation from Powerus, a year-old United States drone company backed by two sons of President Donald Trump, was received by Pakistan’s military chief, Field Marshal Asim Munir, at military headquarters in Rawalpindi.

A day later, the company announced it had received a “limited procurement order” from Pakistan’s Ministry of Defence for unmanned aerial systems. It also said it had signed a separate memorandum of understanding (MoU) with senior Pakistani defence officials.

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Neither the value of the order nor the systems involved have been disclosed. But for analysts studying Pakistan’s venture in drone technology, even bigger concerns have arisen from information that has since emerged.

Less than three months earlier, the same company had given an Indian defence manufacturer the exclusive right to make and sell its drone interceptor technology in India. And one of the cofounders of Powerus is an Israeli military veteran. Pakistan does not recognise Israel and accuses it of carrying out a genocide in Gaza.

Analysts are questioning why a country that already builds its own drones and buys others from China and Turkiye would turn to a company that was founded only last year – and has links to Israel and sells drones to India too.

“Pakistan technically already makes or is capable of making each of the drones shown by Powerus,” Bilal Khan, founder of the Quwa Group, a Toronto-based defence news and market intelligence platform, told Al Jazeera. “It’s unclear where Powerus fits in the long term [from Pakistan’s perspective].”

What did Pakistan sign?

In its statement on the meeting, Inter-Services Public Relations (ISPR), the Pakistani military’s media wing, said the two sides discussed cooperation in defence procurement, production and capacity building.

The statement did not mention the MoU.

But Powerus told Al Jazeera which institutions were involved. “The MoU was signed with the Pakistan army. The related procurement order was placed by Pakistan’s Ministry of Defence,” a company spokesperson said.

In its own statement, Powerus said the memorandum was not a definitive agreement, created no purchase obligation and would be subject to US laws and government approvals.

“We are proud to support Pakistan’s Ministry of Defence, and the memorandum gives both sides a strategic framework to build upon,” Brett Velicovich, the company’s cofounder, said in the statement.

According to media reports, Velicovich has also said the company is exploring ways to build technology in Pakistan.

The ISPR, the Ministry of Foreign Affairs and the Ministry of Information and Broadcasting did not respond to Al Jazeera’s requests for comment.

Founded in ۲۰۲۵ and based in Florida, Powerus is set to merge with Aureus Greenway Holdings, a Nasdaq-listed company that owns golf courses in the US state, in a deal expected to close in the final quarter of this year.

Donald Trump Jr and Eric Trump, President Trump’s oldest sons, are investors in Powerus through a vehicle called American Ventures, which is expected to hold a ۹.۹ percent beneficial stake in the combined company, according to US regulatory filings.

A spokesperson for Donald Trump Jr has told media outlets that he is a passive investor with no role in the company’s operations or contracts and had no prior knowledge of the Pakistan deals.

The White House has said there are no conflicts of interest.

The company makes about ۳,۰۰۰ interceptor drones a month, according to media reports, and last month won a US Air Force contract with a ceiling of up to $۹۰m.

Asked how it addresses conflict of interest questions while pursuing government defence work in the US and abroad, Powerus said the Trump brothers played no part in its operations.

“Trump’s sons are not advisers to Powerus and have no involvement in how the company runs its business or structures its defence relationships, domestically or internationally. They hold no corporate-governance role. Our government relationships are pursued on their own merits,” the company told Al Jazeera.

The India question

Powerus’s first deal in South Asia, however, was not in Pakistan.

It was in India, Pakistan’s archrival, with which Pakistan fought a brief but intense conflict in May last year, one in which drones were used by both sides.

In a June ۳۰ filing to India’s stock exchanges, Paras Defence and Space Technologies said Powerus had granted it an exclusive licence to manufacture and sell its Guardian-۱ interceptor technology in India.

Mansoor Ahmed, an honorary lecturer at the Australian National University’s Strategic and Defence Studies Centre, said Washington has long armed rival states.

“The US has previously sold F-۱۶s to Greece and Turkiye and Egypt and Israel and is now selling F-۳۵s to Saudi Arabia, which Israel already operates,” he told Al Jazeera.

A former Pakistani government defence analyst who spoke on condition of anonymity said Pakistani planners had probably known about the Indian deal.

“Pakistan’s defence planners were likely aware of Powerus’s engagement with India,” he told Al Jazeera.

This isn’t the first time that Pakistan and India have ended up buying military equipment from the same company, the defence analyst pointed out. He cited the build-up to the conflict over the Siachen Glacier, where India launched Operation Meghdoot in April ۱۹۸۴ to take control of the heights.

“In ۱۹۸۳, Pakistan ordered high-altitude warfare gear from a London supplier, unaware that the same firm also provided gear to the Indian army, and subsequently, India learnt of it and planned Operation Meghdoot in ۱۹۸۴,” he said.

The analyst said the burden now lies with the company.

“In the present case, the challenge is more for Powerus than Pakistan or India as Powerus’s management must ensure it can manage and meet the requirements of two adversaries without jeopardising either side’s operational security.”

A retired Pakistan air force air marshal who spoke on condition of anonymity because he was not authorised to speak publicly said the arrangement carries risks for Pakistan.

“Two adversary countries procuring from the same source has its pitfalls, especially when one of the adversaries has taken the lead as well as has a larger financial capacity,” he told Al Jazeera.

An Israeli link

The company’s leadership also has links to Israel, a country Pakistan does not recognise.

Powerus’s website described one of its cofounders, Ziv Marom, as a veteran of the Israeli military and said he founded Kaizen Aerospace, now a Powerus subsidiary.

Another senior executive, Justin Gans, the company’s vice president for mergers and acquisitions and a former member of the US Navy SEAL special forces, served as a vice president at Elbit Systems of America, the US arm of the Israeli defence company Elbit Systems, from ۲۰۱۸ to ۲۰۱۹.

A retired three-star army Pakistani general who served in senior roles before retiring in ۲۰۱۹ and requested anonymity because of the sensitivity of the subject said such a background would normally draw attention during vetting.

“So under normal circumstances, a cofounder’s service in the Israeli military would be flagged as a sensitivity marker, even if the company itself is American,” he told Al Jazeera.

“In other words, for a serious acquisition, this background would be scrutinised carefully. For a political MoU, it may not have been a decisive factor.”

Quwa’s Khan, however, said Pakistan has long accepted Israeli components inside US or European systems.

“We can see that, generally, as long as there’s a country in the middle, Pakistan does not have qualms being in close proximity to Israel,” he said. “However, the two sides very, very rarely talk to each other.”

What drone technology does Pakistan already have?

Beyond questions over who else Powerus works with, analysts said the more fundamental issue is what Pakistan actually needs from the company.

Pakistan’s air force has publicly displayed Turkish-made Bayraktar TB۲ and Akinci drones, Chinese-made Wing Loong II drones and the domestically developed Shahpar-II.

China supplied ۸۰ percent of Pakistan’s arms imports from ۲۰۲۱ to ۲۰۲۵, according to the Stockholm International Peace Research Institute.

This month, the Pakistan air force revealed in a video that it had incorporated into its forces China’s HQ-۱۷AE air defence missile system and Turkiye’s Korkut anti-aircraft gun and Sahin counterdrone system, all built to take on drones and other low-flying threats.

Khan said the state-owned Heavy Industries Taxila was also working with private firms to develop interceptor drones.

“So as it stands, Pakistan is following all the right best practices to build its C-UAS posture,” he said, referring to counterdrone systems.

“For Pakistan, the challenge isn’t whether it can get the designs but whether it can produce or induct these in large enough numbers fast enough.”

An official at a private drone manufacturer in Rawalpindi who requested anonymity because he is not authorised to speak to the media said Pakistan’s drone market has grown well beyond state-run firms.

Dozens of private companies and more than half a dozen state-owned enterprises now make drones besides the army’s own production facilities, he said. According to him, Powerus would have to compete with all of them on the quality of its products.

The retired general offered a different reading of why Pakistan might be interested in a tie-up with a US firm.

“The gap is not drone manufacturing. It is electronics, integration and systems-level capability, which is where American firms traditionally dominate,” he said. “How far this particular company can help in this regard is a million-dollar question.”

Powerus’s Guardian interceptors are small, low-cost drones designed to knock down incoming drones. They are a weapon widely used by both sides in the war in Ukraine.

Hammad Waleed, a research associate at the Islamabad-based Strategic Vision Institute, said such systems fill a cost gap that conventional air defences cannot.

“Traditional air defences use costly missiles against incoming cheaper drones,” he told Al Jazeera. “Interceptor drones are way cheaper and easier to operate than traditional air defences.”

Capability or signalling?

The retired Pakistani general, who has experience with defence production, said a supplier of this kind would normally face financial, technical and security checks as well as a review of its track record.

“A company less than a year old, not yet listed and without a delivery record would not usually clear these checks for a strategic defence partnership,” he said.

“Such firms are typically considered too immature unless the MoU is political signalling rather than a procurement decision.”

Khan agreed that the process has been unusual.

“Yes, the way this deal came about is not generally in line with how the procurement heads of the tri-services typically operate,” he said, referring to the three branches of Pakistan’s military.

The Powerus agreements were made as Munir has built close ties with President Trump, who has called him “my favourite field marshal” and praised him on several occasions during the past ۱۵ months.

In September last year, weeks after Pakistan signed a $۵۰۰m critical minerals agreement with a US company, Munir and Prime Minister Shehbaz Sharif met President Trump at the White House, where the Pakistani leaders presented him with samples of Pakistani minerals.

In January, Pakistan also signed an MoU with an affiliate of World Liberty Financial, the Trump family’s main cryptocurrency business.

Khan said Pakistan’s security establishment needs to ask what it is getting in return for that closeness.

“There was a time when such gains were measured in F-۱۶s and the billions in US financial assistance, yet today, we are seeing more photo ops and supposed pacts that obligate the armed forces, but are they helping the armed forces as a fighting force?”

He also offered what he called a “less cynical take”.

Pakistan has a growing number of drone start-ups that lack the capital to build production facilities, he said, and ties with Powerus could draw US investment into them.

“So there is an argument that building rapport with Powerus and its backers can lead to that capital,” Khan said.

Ahmed said Pakistan is looking beyond a single purchase.

“Pakistan’s primary interest appears to be the acquisition of state-of-the-art drone technologies that also allow for local production and indigenisation,” he said.

What about China and Turkiye?

The retired Pakistani general said bringing in a foreign private company could overlap with Pakistan’s existing Chinese and Turkish partnerships.

“It has the potential of being seen by Turkiye and China as Pakistan hedging politically,” he said.

Khan, however, disagreed.

“There’d be no issue with the Turks as they work with US companies all the time and the drones on offer by Powerus don’t overlap with the ones NASTP is designing with Turkiye,” he said, referring to Pakistan’s National Aerospace Science and Technology Park.

He added that any Powerus designs built cheaply in Pakistan would still rely on Chinese parts.

“With the Chinese, it’d be less of an issue because, ultimately, the only way to make these Powerus designs at a low enough cost for the Pakistani armed forces to induct is to literally import the upstream subassemblies from China.”

Waleed said the deal would not dent Pakistan’s defence ties with Beijing and Ankara.

“Pakistan is prioritising China and Turkiye for the sophisticated and modern combat systems in the drone and counterdrone domain. That relationship is not only unaffected and is going upwards in trajectory,” he said.

For now, Khan said, the real test of the Powerus deal would be what follows it.

“I would not pass judgement on the Powerus deal yet, but we can track whether it’s serious by seeing if the MoD [Ministry of Defence] signs similar deals with other foreign and local vendors in the coming months,” he said.

“Basically, will we see a consistent pattern moving forward, or will this be a one-off?”