Excise Department Seals PECO Factory

The factory of Pakistan Engineering Company Limited (PSX: PECO) has been sealed by the Excise and Taxation Department of Punjab due to non-payment of property tax worth Rs. 1.9 million, the company disclosed in a filing to the Pakistan Stock Exchange (PSX) on Thursday. According to the filing, the company’s management is actively engaging with authorities to resolve the matter and restore access to the premises in order to avoid disruption to administrative operations. In a separate development, PECO also announced that it has been unable to proceed with its planned Right Issue, initially announced on January 21, 2025. The Securities and Exchange Commission of Pakistan (SECP) has issued directives in two separate proceedings restricting the company from moving forward with the issue. The SECP’s objection is based on PECO’s name appearing in the Credit Information Bureau (CIB) report due to an outstanding liability, which creates regulatory limitations on capital raising. PECO said it is pursuing legal and regulatory forums to clarify that the proposed Right Issue was intended to address such compliance and financial concerns. The company pledged to keep shareholders informed of any further material developments.