LAHORE: Pakistan Engineering Company Limited (PECO) announced that its factory premises have been sealed by the Excise and Taxation Department of the Punjab government due to non-payment of property tax amounting to Rs1.9 million.
PECO disclosed this development through a notice to the Pakistan Stock Exchange (PSX) on Thursday.
The company said that 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.
Additionally, PECO’s Right Issue, originally announced on January 21, 2025, has faced regulatory roadblocks. The SECP restricted PECO from proceeding with the Right Issue, citing regulatory limitations primarily due to the company’s name appearing in the CIB report in relation to an overdue liability.
The company said it was actively pursuing appropriate forums and representations to clarify that the proposed Right Issue aims to address the very compliance concerns, and therefore, the restrictions should not apply in such a context.
Despite these challenges, PECO has assured its shareholders that they will be kept informed of all significant developments as efforts continue to resolve the issues.
