Karachi: The Pakistan Stock Exchange (PSX) has decided to withhold further action against Pakistan Engineering Company Limited (PECO), according to a report dated October 12, 2026. The decision follows PECO's recent efforts to address non-compliance issues as stipulated by the PSX regulations.

In an earlier notice, PSX/N-882, dated July 14, 2026, a Risk Warning Alert (RWA) was issued against PECO due to its failure to pay a penalty imposed under Clause 5.21.1 of the PSX regulations within the designated timeframe. In response to this alert, PECO has shown progress towards rectifying non-compliance with Clause 5.11.1 (d) of the PSX regulations. The company has submitted a cheque to cover the penalty amount, prompting the PSX to withhold additional actions, specifically the issuance of buy-back directions to majority shareholders or sponsors, as outlined under Clause 5.11.3.(e) of the PSX regulations.

According to information available from the Pakistan Stock Exchange (PSX), the withholding of further action is contingent upon the clearance of the cheque submitted by PECO. If PECO fails to rectify the non-compliance, PSX will proceed with compulsory buy-back directions for the majority shareholders or sponsors in control of the company, adhering to the regulations.

Should PECO succeed in resolving the non-compliance issue under Clause 5.11.1.(d), the previously issued RWA will be withdrawn. Nonetheless, PECO will continue to be listed in the Non-Compliant Segment in accordance with Clause 5.11.1.(g) of the PSX regulations.

The situation remains under close observation by the PSX as PECO endeavors to meet the necessary compliance standards.