The Oil and Gas Development Company Limited (OGDCL) has received the sixth installment of Rs7.725 billion as part of Pakistan’s ongoing circular debt settlement, the company announced in a filing. This payment is part of twelve equal monthly installments being made by Power Holding Limited (PHL) under the Government of Pakistan’s (GoP) circular debt resolution framework.
Earlier disclosures indicate that the total interest amount of Rs92 billion will be repaid over 12 monthly installments, which commenced in July 2025. The latest receipt underscores continued progress in the government’s efforts to address the energy sector’s mounting circular debt.
On December 11, OGDCL had also received Rs41.8 billion from Uch Power (Private) Limited as part of the broader debt settlement initiative. In June 2024, the federal government approved the payment of Rs82 billion to OGDCL representing the principal of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL, in addition to the approved interest repayment plan.
OGDCL, incorporated on October 23, 1997 under the Companies Ordinance of 1984 (now Companies Act, 2017), is responsible for the exploration, development, and production of oil and gas resources in Pakistan. The company continues the operations previously carried out by the Oil and Gas Development Corporation, founded in 1961, playing a pivotal role in meeting Pakistan’s energy requirements.
The structured repayments reflect the GoP’s commitment to reducing circular debt liabilities, ensuring liquidity in the energy sector, and strengthening the financial health of key state-owned energy companies like OGDCL. Analysts view these developments as crucial to stabilising Pakistan’s power and gas supply chain while enabling continued investment in energy infrastructure.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.