Islamabad: Oil & Gas Development Company Limited (OGDCL) has received the seventh installment of Rs7.725 billion from Power Holding (Private) Limited (PHL) under the government-approved circular debt settlement mechanism, the company disclosed in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.
The payment forms part of a structured plan approved by the Government of Pakistan (GOP) to address long-standing circular debt issues in the energy sector. Under the arrangement, a total interest amount of Rs92 billion is being repaid to OGDCL in twelve equal monthly installments, which commenced in July 2025.
With the receipt of the seventh installment, the repayment process has crossed the halfway mark, reflecting steady implementation of the agreed mechanism. The circular debt settlement initiative aims to improve liquidity across the energy value chain, particularly for upstream exploration and production companies that have faced cash flow constraints due to delayed receivables.
Market observers note that timely payments under this framework are critical for strengthening the financial position of energy companies, supporting ongoing exploration activities, and enhancing overall stability in Pakistan’s power and petroleum sectors. The latest disbursement underscores continued progress in the government’s broader efforts to resolve circular debt and restore confidence in the energy sector’s financial management.
