Lahore: Pakistan Engineering Company Limited (PECO) has encountered significant operational challenges following the sealing of its factory premises by the Excise and Taxation Department of the Government of Punjab. The action was taken due to a non-payment of property tax amounting to PKR 1.90 million. The company is currently engaged in negotiations with the relevant authorities to resolve the matter and regain access to the factory offices, aiming to prevent any disruption in its administrative functions.

On January 21, 2025, PECO announced plans for a Right Issue, but the initiative has been stalled due to interventions by the Securities and Exchange Commission of Pakistan (SECP). According to information available from the Pakistan Stock Exchange (PSX), the SECP has issued directives in two separate proceedings that restrict the company from proceeding with the Right Issue. The primary reason for this restriction is the appearance of PECO's name in the Credit Information Bureau (CIB) report related to an overdue liability.

PECO management is actively seeking to address these regulatory hurdles, arguing that the proposed Right Issue is intended to resolve compliance issues and should not be impeded by the current restrictions. The company has committed to keeping its shareholders informed about significant developments as the situation evolves.

The market category for this information is Designated Market. The company has urged TRE Certificate Holders of the Exchange to be notified accordingly, ensuring all stakeholders are aware of the ongoing efforts to address these challenges.