STATE ENGINEERING CORPORATION OF PAKISTAN (SEC)

PAKISTAN ENGINEERING COMPANY LIMITED (PECO)

General Information: Pakistan Engineering Company Limited (PECO) is the largest light engineering
products manufacturing set-up in Pakistan. It has its own steel making and re-rolling facilities, located in the industrial area of Kot Lakhpat, Lahore. The diversified product range includes Machine Tools, Electric Motors, Pumps, Bicycles, Power Looms, Transmission Towers and Steel Fabrication. The infrastructure facilities at Kot Lakhpat Works are installed on a 247 acre of land. Additionally, PECO owns 251 Kanals of
vacant land at Badami Bagh comprising of 131 Kanals of Acquired land and 120 Kanals of Purchased land.

Legal Position: At the moment there is no legal case impeding the privatization of the unit.

Financial Highlights (as on 30th June 1999) Rs. In Million

Total assets	1,920.24
Total liabilities	1,815.40
Net worth	104.84

Privatisation Status and Issues: There have been nine attempts to privatize the unit by adopting different strategies, but none of them materialized. Delay in implementing BMR plan has reduced the technical edge of the company over its competitors. Huge liabilities of Rs.1.8 billion, including government bonds worth Rs.784 million with poor Order-book has discouraged any interest by the private sector. Only vacant land at Badami Bagh under 'Purchased Category' measuring 120 Kanals, for which NOC from Board of Revenue is not required can be sold off. Maximum price can be realized by plotting the land into viable sizes.

Key Contacts:
Mr. Naeem Baig, Director General
Privatisation Commission, 5-A Constitution Avenue,
EAC Building, Islamabad - Pakistan
Telephone: (92-51) 9216514
Facsimile : (92-51) 920 3076, (92-51) 921 1692