Beco Steel Limited has initiated the finalisation of funding arrangements with its UAE-based sister concern, Beco Steel Ferrous and Non Ferrous Metal Trading LLC, to finance its upcoming solar power project.
In a notice submitted to the Pakistan Stock Exchange (PSX) on Monday, the listed company disclosed that its Board has begun structuring an arm’s length investment and participation arrangement with the UAE entity. The move aligns with Beco Steel’s strategy to execute the project without reliance on conventional interest-based borrowing, reinforcing its Shariah-compliant financial positioning.
The development follows last week’s announcement that the company has commenced installation of a 5-megawatt solar power plant. The facility is expected to generate an average of 600,000 kilowatt-hours (kWh) of electricity per month, contributing significantly to the company’s energy requirements and cost optimisation.
“In continuation of our earlier disclosure regarding the Company’s expansion plan, including installation of a solar power plant as part of the project, the Company is pleased to inform that the construction and execution of the project has started,” the company stated.
The investment comes amid a broader shift in Pakistan toward alternative energy sources, particularly solar power, which has gained traction across residential, commercial, and industrial segments due to rising grid tariffs and energy security concerns.
By advancing its solar initiative through an internally structured funding model, Beco Steel aims not only to enhance operational sustainability but also to position itself as a forward-looking industrial player in Pakistan’s evolving renewable energy landscape.
