PSX Gives Pakistan First Engineering Company, PECO, Until July 14 to Clear Dues or Face Risk Warning

KARACHI: The Pakistan Stock Exchange (PSX) has issued a fresh notice to Pakistan Engineering Company Limited (PECO), giving the company until July 14, 2026, to clear outstanding dues and rectify non-compliance with PSX Regulation 5.11.1.(d).

PECO was originally 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.

In its Notice No. PSX/N-788 dated June 29, 2026, the bourse reminded all concerned that PECO had earlier been flagged for failing to pay a penalty imposed by the exchange, as notified in PSX Notice No. PSX/N-427 dated April 15, 2026.

The exchange warned that failure to pay all outstanding dues by the deadline will result in action under Clause 5.11.3.(d) of the PSX Regulations, including the issuance of a Risk Warning Alert against the company.

Even if PECO rectifies the specific non-compliance by the deadline, it will continue to remain quoted in the “Non-Compliant Segment” under non-compliance of PSX Regulation 5.11.1.(g) until all other non-compliances are also resolved.

The notice, issued by Atif Islam Siddiqui, AGM and Unit Head of Listed Companies Compliance at the Regulatory Affairs Division, has been circulated to the Securities and Exchange Commission of Pakistan (SECP), company officials, registrars, depositories, clearing houses, and other stakeholders.

Market Reaction

On Monday, June 29, 2026, PECO shares closed at Rs879.58, down Rs38.23 or 4.16 percent. The stock traded in a range of Rs872.00 to Rs917.81 with thin volume of just 3,468 shares. The counter is prominently marked as NON-COMPLIANT on the PSX data portal.

Despite today’s decline, the scrip has shown strong longer-term performance, recording a 1-year gain of over 15 percent and a year-to-date surge of nearly 80 percent.