Approval granted to PIA’s transfer
of Precision Engineering Complex to new entity
The Securities and Exchange Commission of Pakistan
(SECP) has approved Pakistan International
Airlines Holding Company Limited’s (PIAHCL) plan to transfer its Precision
Engineering Complex (PEC) into a separate entity, Precision Engg Comp (Private)
Limited (PECPL), under the Pakistan Air Force
(PAF).
The development was announced in a
notice to the Pakistan Stock Exchange (PSX) on Wednesday. Under the approved
arrangement, all PEC assets, liabilities, contracts, and employees will be
transferred to PECPL, with the effective date of transfer set as May 1, 2025.
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Holding approves transfer of Precision Engineering Complex to PAF-owned entity
PECPL will also assume pension liabilities of Rs2.9 billion for 259 retired employees and future pension and provident fund obligations of Rs1.1 billion for 251 current employees associated with PEC. Employment terms and conditions for all staff will remain unchanged under their existing contracts with PIAHCL.
The scheme includes an amendment to
Article 20.1 addressing land encumbrances. It requires PIAHCL, with prior
approval from Sukuk investors and participants, to ensure the release or
replacement of FEC land from the Musharaka assets pool and remove any
associated encumbrances.
In October 2025, PIAHCL had approved
the transfer of PEC to the PAF-owned entity, formalizing the carve-out as part
of a government-sanctioned restructuring plan.
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to hand over Precision Engineering Complex to PAF-controlled entity
PEC, a key unit of PIA, is a leading manufacturer of high-precision components for aerospace and other industries. The facility offers integrated services including investment casting, CNC machining, optics, PCB, electrical, electronics, and composites, serving major clients such as General Electric, Airbus, and Boeing.
Source: Profit Pakistan