The factory of Pakistan Engineering Company Limited (PSX: PECO) has been sealed by the Punjab Excise and Taxation Department due to non-payment of property tax amounting to Rs. 1.9 million, the company disclosed in a filing to the Pakistan Stock Exchange (PSX) on Thursday.

PECO’s management stated that it is actively engaging with authorities to resolve the issue and restore access to the premises, aiming to prevent any disruption to administrative operations.

In a separate development, PECO announced it has been unable to proceed with its planned Right Issue, which was initially announced on January 21, 2025. The Securities and Exchange Commission of Pakistan (SECP) has issued directives in two separate proceedings, restricting the company from moving forward with the capital-raising initiative.

The SECP’s objection stems from PECO’s name appearing in the Credit Information Bureau (CIB) report due to an outstanding liability, which imposes regulatory limitations on raising new capital.