The Privatization Commission (PC) of Pakistan decided to shelve the plan for
privatization of Pakistan Engineering Company (PECO) until the entity is free from
Cabinet Committee on Privatization (CCoP), in its meeting held on 8 August, 2019,
directed the PC to select any ten PSEs from the privatization list approved in CCoP
meeting, held on October 31, 2018, for privatization and initiate the process for
hiring of Financial Advisors collectively or separately, as per legal requirements,
for selected PSEs.
The following issues came to light during meetings with MOI&P and PECO: (i) legal
case in Islamabad High Court (IHC); (ii) default on repayment of NBP loan; (iii)
defaulters’ status on Pakistan Stock Exchange; (iv) mutation of land in the name
of PECO; (v) non-availability of audited/approved financial statements from June
2018 onwards; (vi) verification of valuation of assets (including Badami Bagh &
Kot Lakhpat Land); (vii) unauthorized JV between MD and a private firm; and (viii)
inquiry initiated by SECP for non-compliances on March 26, 2021.
Due to the complexity of these issues the PC has decided to completely shelve the
idea of privatization of PECO.