PECO to raise Rs284m via rights issue

The Pakistan Engineering Company Limited (PECO) Board of Directors (BoD) has decided to issue shares to existing shareholders to raise Rs284.5 million to meet the company's funding requirements, blaming the former managing director (MD) for the current financial crisis. In a press statement and a notice to the Pakistan Stock Exchange (PSX), the board announced its decision for the rights issue at a price significantly lower than PECO's market value. The Board of Directors of PECO, a public-listed company, also approved five years of delayed financial accounts, which will be presented for approval at a general body meeting of its shareholders scheduled for February 17, 2025, as per a press statement. "This is a tragic example of the damage caused by unchecked mismanagement and neglect, but today marks a turning point," said Mirza Mahmood Ahmad, Chairman of the BoD. "By approving these accounts, we are re-establishing transparency, accountability, and a foundation for PECO's revival."