PECO factory sealed over non-payment of Rs1.9mn property tax
The Excise and Taxation Department of the Punjab government has sealed the factory premises of Pakistan Engineering Company Limited (PECO), a publicly listed company, due to non-payment of property tax amounting to Rs1.9 million.
The company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
'The management is actively engaging with the relevant authorities to resolve the matter and ensure restoration of access to the factory offices to avoid disruption in administrative functions,' PECO said, in its filing to the bourse.
PC initiates privatisation process of PECO
Concerning the announcement of a Right Issue by PECO made in January 2025, the company informed that it has not proceeded with the said Right Issue due to directives issued in two separate proceedings initiated by the Securities and Exchange Commission of Pakistan (SECP).
'The SECP has restricted PECO from proceeding with the Rights Issue, citing regulatory limitations primarily due to the company's name appearing in the CIB report in relation to an overdue liability,' it said.
PECO added that it is actively pursuing appropriate forums to clarify that the proposed Right Issue is 'aimed at addressing these very compliance concerns, and therefore, the restrictions should not apply in such a context'.
Initially established under the name of Batala Engineering Company (BECO) in 1950, PECO produced light engineering products.
Historically, the company manufactured high-quality machine tools, pumps, power looms, concrete mixers, cranes, power presses, electric motors, bicycles, steel rolled products, electricity transmission towers, structures and general fabrication.
The plant was originally set up at Badami Bagh, Lahore, spanning 34 acres, with the neighbouring area subsequently converted into the steel centre of Pakistan. Due to the rapid addition of products, the land area became inadequate for further expansion and 247 acres of land were acquired in 1960 at Kot Lakhpat industrial zone, Lahore, for relocating factory premises in the future.
After being taken over by the government in 1972 under the nationalisation reforms, it was rechristened Pakistan Engineering Company (PECO).
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