The Privatisation Commission (PC) has invited international and local firms to submit their expressions of interest by 9 May for consultancy on the privatisation of the Kot Lakhpat Works in Lahore, which belongs to Pakistan Engineering Company (PECO).

The PC plans to sell a 90 per cent stake with management control to a strategic investor. The remaining 10 per cent will be offered to the employees of the company. The book value of the works is estimated at Rs 1,500 million ($33.8 million). It has a paid-up capital of Rs 56.9 million ($1.3 million).

PECO is the biggest light engineering goods manufacturer in Pakistan. It produces bicycles, electric motors, diesel engines, pumps, machine tools, textile looms, concrete mixers, electric transmission and distribution towers, steel rolled products and steel ingots. More than 1,800 people work at the unit. A consultant is scheduled to be appointed by the end of May.

The PC is also in the process of hiring a local consultant for the sale of 90 acres of land owned by PECO in Kot Lakhpat. Bids for the estimated Rs 700 million ($17.5 million) property will be invited by the end of June.

Plans are also under way to develop and sell land owned by PECO in the Badami Bagh area of Lahore. The PC is currently waiting for proposals from the Lahore Development Authority and the Frontier Works Organisation for the construction of roads and associated facilities on the land. The property is estimated to be worth more than Rs 400 million ($9 million).