ISLAMABAD, September 16 (Reuters) – The American drone company Powerus signed a memorandum of understanding with the Pakistan Army that includes an initial order related to drones, cofounder Brett Velicovich told Reuters on Wednesday.
“Today we signed a very important memorandum of understanding. As part of this agreement, we received an initial order for power systems,” Velicovich said, speaking in Islamabad. When asked about which technology was covered by the agreement, Velicovich refused to provide details, citing security concerns, but said it fell into the category of unmanned aerial systems. He also refused to disclose the value of the order, citing confidentiality.
The signing of the memorandum of understanding and the initial order had not been disclosed previously.
Powerus, which offers aerial and maritime drones for military and industrial use, is set to merge with a publicly traded company backed by two of the US president Donald Trump’s sons, called Aureus Greenway Holdings. Both brands stated that they expect the merger to be completed in early October.
Trump’s sons, Donald Trump Jr. and Eric Trump, hold an interest in Aureus through an investment fund called American Ventures, according to US regulatory filings. American Ventures is expected to hold a 9.9% stake in the beneficial ownership of the post-merger company, according to the regulatory filings.
The Pakistan Armed Forces said on Wednesday that a Powerus delegation led by Velicovich met with Field Marshal Syed Asim Munir and discussed defense acquisitions, production, and long-term capacity building. The Armed Forces’ statement did not mention the memorandum of understanding.
The Armed Forces’ press office did not immediately respond to a request for comment on the agreement outside business hours.
The agreement comes amid improving relations between Washington and Islamabad under the administration of President Donald Trump, after years of tense relations. Trump publicly praised the head of the Pakistan Army, Munir, while Islamabad has been promoting a series of economic, financial, and defense initiatives aimed at strengthening relations with the United States.
Andrew Fox, cofounder and chief executive of Powerus, said that Pakistan’s private defense sector remains “emerging, but not yet mature,” leaving room for American companies to move more quickly.
“The objective would be a joint technology partnership, combining the best technology from the US with the best technology from Pakistan,” Velicovich said, adding that Powerus was exploring ways to potentially develop technology in Pakistan.
Fox rejected suggestions that the company’s growth was linked to the involvement of Trump’s sons, stating that contracts were awarded on merit and that they “have no involvement in the commercial side” of the company.
A spokesperson for Donald Trump Jr. said that he is a passive investor with an indirect stake. “Don has no involvement in the management or operations of PowerUS and does not play any role in obtaining contracts in the United States or abroad,” the spokesperson said. “He had no prior knowledge of this agreement and had no involvement of any kind in its negotiation, procurement, or execution.” A spokesperson for Eric Trump could not be reached immediately.
