PSX warns PECO of compulsory buyback, flags three spinning mills over unpaid fees, penalties

Profit by Pakistan Today reported that the Pakistan Stock Exchange has cautioned Pakistan Engineering Company Limited (PECO) that its major shareholders and sponsors could be ordered to buy back shares compulsorily. The threat applies if the company does not settle its outstanding dues by October 12. The exchange issued the notices on October 5.

Because a penalty under clause 5.21.1 of the PSX Regulations went unpaid, PECO was placed on a Risk Warning Alert on 14 July 2026. Even if the dues are cleared by the deadline, the company will remain on the Non-Compliant Segment because of a separate breach of regulation 5.11.1(g). Its listing status will persist until all remaining non-compliances are rectified.

Separately, the exchange flagged Gulshan Spinning Mills Limited, Gulistan Spinning Mills Limited and Paramount Spinning Mills Limited for failing to pay penalties it had imposed. All three were already on the Non-Compliant Segment for missing annual listing fees and SECP supervisory fees for two years. The breach under regulation 5.11.1(d) will continue for each of them until every outstanding due is paid.