ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production firm, has received the first interest installment of Rs7.73 billion from Power Holding (Private) Limited (PHL) under the government’s circular debt settlement framework.
The development was announced in a notice to the Pakistan Stock Exchange (PSX) on Monday, confirming that the payment is part of a broader plan approved by the Government of Pakistan to resolve the mounting circular debt in the energy sector.
“As part of the circular debt settlement plan, OGDCL has received the first interest payment of Rs7.725 billion from PHL, pursuant to the Government of Pakistan approved mechanism,” the company stated.
The total interest amount of Rs92 billion is to be repaid in twelve equal monthly installments beginning July 2025. This marks a key milestone in the implementation of the government’s long-awaited strategy to alleviate financial stress in the power and energy sectors.
As part of the settlement finalized last year, the government approved a principal payment of Rs82 billion to OGDCL, covering its investment in Privately Placed Term Finance Certificates (PPTFCs) issued by PHL. The settlement also included a waiver by OGDCL of Rs72 billion in liquidated damages, as per government directives.
OGDCL, incorporated in 1997 and originally part of the state-owned Oil and Gas Development Corporation established in 1961, remains a critical player in the development and production of Pakistan’s oil and gas resources.
The payment reflects visible progress in the government’s efforts to tackle the country’s chronic energy sector liabilities and restore financial viability to state-run and private energy entities.
