Lahore: Pakistan Engineering Company Limited (PECO) has released its annual report for the financial year ending June 30, 2025, highlighting persistent financial challenges and operational stagnation that have plagued the company. This report was transmitted on June 11, 2026, in compliance with clause 5.6.1(d) of the Pakistan Stock Exchange (PSX) Regulations, and includes a comprehensive review of the company's performance over the past year.
PECO's financial results reveal ongoing difficulties, with net sales recorded at Rs. 26.70 million in 2025, a minor move increase from Rs. 23.33 million in 2024. Despite this rise in sales, the company reported a gross loss of Rs. 27.62 million, a big move increase from the previous year's gross loss of Rs. 20.19 million. These figures reflect the company's reliance on scrap sales to generate cash flow amidst stagnant operations.
According to information available from the Pakistan Stock Exchange (PSX), PECO's net loss after taxation stood at Rs. 63.81 million for the financial year 2025, compared to a net loss of Rs. 75.30 million in 2024. This marks a very large or significant move improvement in the company's financial performance, yet challenges remain. The loss per share was reported at Rs. 11.21, down from Rs. 13.23 in the prior year.
The annual report underscores the continued impact of governance disruptions and administrative difficulties from previous years, particularly from 2018 to 2023. These issues have led to operational disruptions, financial irregularities, liquidity constraints, reputational damage, and human resource challenges. The company's commercial operations have been suspended due to acute working capital shortages, obsolete machinery, and the absence of financial support for necessary upgrades.
Despite these challenges, the Board of Directors has emphasized efforts to enhance corporate governance, restore statutory compliance, and improve internal controls. The company aims to resolve legacy issues and implement corrective measures to rebuild credibility and stakeholder confidence.
PECO's contribution to the national exchequer amounted to Rs. 1.16 million during the year, reflecting the company's ongoing commitment to fulfilling its fiscal responsibilities. However, the financial statements indicate that the company continues to face substantial financial hurdles, with a loss carried forward to accumulated loss amounting to Rs. 51.72 million.
In a broader economic context, the report highlights a cautiously optimistic outlook for Pakistan's economy in FY 2025, with real GDP growth at 2.68% and inflation declining to 4.5%. However, the industrial sector, including PECO, continues to face significant challenges, requiring strategic capacity management and technological advancement to ensure sustainable growth.