PECO, Established in 1947, Gets Final Warning from PSX on Regulatory Breach

KARACHI: The Pakistan Stock Exchange (PSX) on Monday issued a fresh notice to Pakistan Engineering Company Limited (PECO), directing the company to rectify its non-compliance with PSX Regulation 5.11.1.(d) by paying all outstanding dues on or before July 14, 2026.

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This is the latest development in a regulatory matter that dates back to PSX Notice No. PSX/N-427 issued on April 15, 2026, which had flagged PECO for failing to pay a penalty imposed by the exchange.

PECO was established in 1947. In fact, it was established in 1932 as the Batala Engineering Company (BECO) by Chaudhry Mohammad Latif Arain in East Punjab, it relocated to Lahore following the 1947 partition. The company was nationalised by the federal government in 1972 and subsequently renamed PECO.

According to PSX Notice No. PSX/N-788 dated June 29, 2026, failure to meet the July 14 deadline will trigger action under Clause 5.11.3.(d) of the PSX Regulations, including the issuance of a Risk Warning Alert against the company.

The notice further clarified that even if PECO clears the current violation within the stipulated time, the company will continue to remain in the “Non-Compliant Segment” under Regulation 5.11.1.(g) until all outstanding non-compliances are fully resolved.

The notice was issued by Atif Islam Siddiqui, AGM and Unit Head, Listed Companies Compliance, Regulatory Affairs Division. It has been circulated widely to SECP, company officials, Central Depository Company, National Clearing Company, State Bank of Pakistan, and other stakeholders.

On Monday, PECO shares closed at Rs879.58, reflecting a decline of Rs38.23 or 4.16 percent. Trading volume remained thin at 3,468 shares. The counter is currently displayed with a prominent NON-COMPLIANT marker on the PSX platform. Despite the day’s losses, the stock has posted a year-to-date gain of nearly 79.5 percent and a one-year return of over 15 percent.

Market participants will closely watch whether PECO meets the upcoming deadline to avoid further regulatory repercussions.