The Privatisation Commission (PC) has initiated the initiated the privatization process of Pakistan Engineering Company Ltd (PECO).
The development was shared by PECO, which is principally engaged in the manufacturing and sale of engineering products, in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“PC has initiated the process of privatisation of Pakistan Engineering Company Limited (PECO),” read the notice.
“The management of PECO is directed that they shall not take any major administrative, financial and policy decisions without prior approval of the Privatisation Commission,” it added.
Back in June, PC temporarily suspended the divestment process of PECO and asked the Ministry of Industries and Production (MoIP) to take immediate action to address the issues before proceeding further on the PECO transaction.
Initially established under the name of Batala Engineering Company (BECO) in 1950, the PECO produced light engineering products.
Historically, the company manufactured high-quality machine tools, pumps, power looms, concrete mixers, cranes, power presses, electric motors, bicycles, steel rolled products, electricity transmission towers, structures and general fabrication.
The plant was originally set up at Badami Bagh, Lahore spanning 34 acres, with the neighbouring area subsequently converted into the steel centre of Pakistan. Due to the rapid addition of products, the land area became inadequate for further expansion and 247 acres land was acquired in 1960 at Kot Lakhpat industrial zone, Lahore for relocating factory premises in the future.
After take over by the government in 1972 under the nationalisation reforms, it was rechristened Pakistan Engineering Company (PECO).
In 2002, the government decided to restructure the company with all machines, equipment, and steel sheds moved from Badami Bagh to Kot Lakhpat. It was decided to close down unprofitable segments of the company including low-technology products such as machine tools, and power looms.