US drone maker Powerus signs Pakistan Army MOU, gets initial order

ISLAMABAD: US drone firm Powerus has signed a memorandum of understanding with the Pakistan Army that includes an initial drone-related order, co-founder Brett Velicovich told Reuters on Wednesday.

"Today we signed a very important MOU. As part of that MOU, we received an initial order for power systems," Velicovich said, speaking in Islamabad.

Asked what technology was covered by the agreement, Velicovich declined to provide details, citing security sensitivities, but said it fell within the category of unmanned aerial systems. He also declined to disclose the value of the order, citing confidentiality.

The signing of the MOU and the initial order have not previously been reported.

Powerus, which offers aerial and maritime drones for military and industrial use, is due to merge with a publicly traded company backed by two of US President Donald Trump's sons, called Aureus Greenway Holdings. Both companies have said they expect the merger to complete in early October.

Trump's sons Donald Trump Jr. and Eric Trump own a stake in Aureus through an investment fund called American Ventures, according to US regulatory filings. American Ventures is expected to hold a 9.9 per cent beneficial ownership stake in the combined company after the merger, regulatory filings show.

Pakistan's military on Wednesday said a Powerus delegation led by Velicovich met Field Marshal Syed Asim Munir and they discussed defence procurement, production and long-term capacity building. The military statement did not mention the MOU.

The military's media wing did not immediately respond to a request for comment on the agreement outside business hours.

The agreement comes amid warming ties between Washington and Islamabad under President Donald Trump after years of strained relations.

Trump has publicly praised Pakistan army chief Munir, while Islamabad has pursued a series of economic, financial and defence initiatives aimed at strengthening relations with the United States.

Andrew Fox, Powerus' co-founder and chief executive, said that Pakistan's private defence sector remains "emerging but still not mature," leaving room for US firms to move faster.

"The goal would be a joint technology relationship, pairing best-in-breed technology from the US with best-in-breed technology from Pakistan," Velicovich said, adding that Powerus was exploring ways to potentially build technology in Pakistan.

Fox dismissed suggestions that the company's growth was linked to the involvement of the Trump sons, saying contracts were awarded on merit and that they had "no involvement on the business side" of the company.

A spokesman for Donald Trump Jr said he is a passive investor with an indirect holding. "Don has no involvement whatsoever in the management or operations of PowerUS and plays absolutely no role in the procurement of contracts in the United States or abroad," the spokesperson said.

"He had no prior knowledge of this deal and had no involvement of any kind in its negotiation, procurement or execution." A spokesperson for Eric Trump couldn't immediately be reached.