PECO faces factory closure over unpaid property taxes

May 29, 2025 (MLN): Pakistan Engineering Company Limited (PSX: PECO) has had its factory premises sealed by the Excise and Taxation Department, Government of Punjab, due to non-payment of property tax amounting to Rs1.9 million.

The company’s management is currently in active dialogue with the relevant authorities to resolve the matter and restore access to the factory offices, aiming to prevent disruptions in administrative functions.

Additionally, PECO has disclosed that it has not proceeded with the Right Issue previously disclosed on January 21, 2025, the company's filing on PSX revealed today. 

The Securities and Exchange Commission of Pakistan (SECP) has issued directives in two separate proceedings restricting the company from moving forward with the Rights Issue.

The SECP’s decision is based on regulatory limitations linked to PECO’s name appearing in the Credit Information Bureau (CIB) report due to an overdue liability.

PECO is actively engaging with the appropriate forums to argue that the proposed Right Issue was intended to address these compliance concerns, and therefore, the restrictions should not apply in this context.

The company has committed to keeping shareholders informed of any significant developments as the situation evolves.

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