Lahore: In a recent report issued on June 12, 2026, the Board of Directors of Pakistan Engineering Company Limited (PECO) unveiled a detailed account of the company's operational and financial challenges for the half-year ending December 31, 2024. The update, part of the Directors' review report, marks a return to regular financial disclosures after a two-year hiatus.

The report highlights the volatility in global steel prices, influenced by raw material cost fluctuations, aggressive Chinese exports, and geopolitical uncertainties. These factors have led to increased trade protectionism and pricing pressures globally. Steel producers have been focusing on operational efficiencies and market diversification in response. Despite these measures, the flat steel sector continues to face risks from global overcapacity and trade barriers.

Pakistan's economy, meanwhile, showed signs of stabilization in FY 2025, with a real GDP growth of 2.68% and a significant drop in inflation to 4.5%. The country recorded a current account surplus of USD 2.1 billion, buoyed by strong remittances and stable exports. Sectoral performance was mixed, with moderate agricultural growth, industrial expansion, and growth in services, particularly in the IT and financial sectors.

The directors' report acknowledged that while the economy showed signs of recovery, PECO continued to grapple with the aftermath of governance disruptions and administrative challenges experienced from 2018 to 2023. These issues have adversely affected PECO's operational and financial performance in 2025, with the company unable to resume production activities due to deteriorated infrastructure and supply chain disruptions.

According to information available from the Pakistan Stock Exchange (PSX), PECO's sales during the reporting period amounted to Rs. 26.70 million, up from Rs. 12.83 million in the same period last year. Despite this increase, the company reported a gross loss of Rs. 12.47 million, compared to Rs. 7.50 million previously. The sales primarily consisted of scrap sales to maintain minimal operational activities.

PECO's loss after taxation stood at Rs. 37.03 million, an improvement from the Rs. 56.70 million loss recorded in the same period last year. As a result, the loss per share improved to Rs. 6.51, down from Rs. 9.96. The company remains focused on strengthening corporate governance and financial discipline, despite ongoing operational and financial constraints.

The Board of Directors extended their appreciation to the management and employees for their dedication during challenging times and reaffirmed their commitment to supporting the Government of Pakistan in addressing the company's issues through the Ministry of Industries and Production.