The Oil and Gas Development Company Limited (OGDCL) announced on Thursday that it has received Rs41.8 billion from Uch Power (Private) Limited, marking a significant step in the government’s ongoing efforts to reduce circular debt in the energy sector.
In a notification to the Pakistan Stock Exchange (PSX), OGDCL confirmed that the payment was made against longstanding receivables. “This receipt reflects the Government of Pakistan’s initiative to address circular debt in the energy sector,” the company said.
Earlier, sources told Business Recorder that the Central Power Purchasing Agency–Guaranteed (CPPA-G) is set to pay a total of Rs89.5 billion to OGDCL on behalf of Uch Power Limited and Uch Power-II. The payment—drawn from the circular debt financing facility—will be made as a lump sum instead of the previously planned 18 monthly instalments.
The arrangement is part of a broader plan approved by the Economic Coordination Committee (ECC) under a Power Division summary titled “Rationalisation of LPI and Potential Reduction for Nuclear Power Plants (NPPs) — Chashma-1, Chashma-2, Chashma-3, Chashma-4, K-2, and K-3.”
The policy push follows Prime Minister Shehbaz Sharif’s decision on August 4, 2024, to establish a Task Force for implementing structural reforms in the power sector. The Task Force has been mandated to identify challenges and ensure the execution of critical reforms aimed at stabilising the sector.
