Beco Steel finalises funding plan for solar power project with UAE affiliate

Beco Steel Limited has initiated the finalisation of a funding arrangement with its sister concern, Beco Steel Ferrous and Non-Ferrous Metal Trading LLC, United Arab Emirates, for its ongoing solar power project.

In a disclosure to the Pakistan Stock Exchange on Monday under the Securities Act, 2015 and PSX regulations, the company stated that the arrangement is aimed at ensuring uninterrupted project cashflows and timely execution of the solar power initiative.

The company said it is structuring an arm’s-length investment and participation agreement with the UAE-based affiliate. The funding model is aligned with Beco Steel’s policy of executing the project without relying on conventional interest-based borrowing and maintaining a Sharia-compliant financial structure.

Read This: What are the expected savings from solar electricity for Beco Steel?

According to the disclosure, the initiative is expected to secure dedicated project cashflows, preserve a debt-free or low-leverage profile, reinforce Sharia-compliant positioning and support long-term value through energy cost efficiencies.

On February 11, 2026, Beco Steel informed the PSX that it had started installation of a 5-megawatt solar power plant as part of its green expansion strategy. The company stated that the contract for solar panel installation had been awarded and procurement arrangements were in progress.

The company has also applied to the Lahore Electric Supply Company for the required sanctioned load enhancement. Installation of the solar system and the load enhancement process are expected to be completed within four months.

Once operational, the 5MW solar system is projected to generate approximately 600,000 kilowatt-hours of electricity per month. Beco Steel estimates monthly cost savings of around Rs16.8 million, translating into annual savings of approximately Rs201 million.