Privatisation Commission Resumes PECO Divestment Process

PECO disclosed this significant development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday. The notice highlighted that the PC has officially kicked off the privatisation proceedings, imposing a directive on PECO's management. It mandates that major administrative, financial, and policy decisions require prior approval from the Privatisation Commission.

This move follows a temporary suspension of the divestment process in June by the PC, during which the Ministry of Industries and Production (MoIP) was tasked to address issues before proceeding with the PECO transaction.

Established in 1950 as Batala Engineering Company (BECO), PECO has a rich history of producing high-quality machine tools, pumps, power looms, and various other engineering products. Originally situated at Badami Bagh, Lahore, the company's growth led to the acquisition of 247 acres of land in Kot Lakhpat industrial zone in 1960 for future expansion.

After nationalization in 1972, PECO underwent restructuring and became the Pakistan Engineering Company. In 2002, a comprehensive overhaul involved relocating the factory from Badami Bagh to Kot Lakhpat, with the closure of unprofitable segments such as low-technology products like machine tools and power looms.

This latest development in the privatisation process aligns with the government's efforts to streamline and optimize state-owned enterprises. The directive to seek prior approval from the Privatisation Commission underscores the gravity of decisions affecting PECO's future trajectory.