Oil and Gas Development Company Limited (OGDCL) has successfully secured the ninth installment of interest payments as part of the federal government’s ongoing strategy to resolve the energy sector’s circular debt. In a formal disclosure submitted to the Pakistan Stock Exchange on Wednesday, the state-owned energy giant confirmed the receipt of Rs7.25 billion from Power Holding (Private) Limited. This payment marks a continued commitment to the structured repayment framework designed to improve the liquidity of major players within the country’s oil and gas exploration landscape.
The current disbursement is part of a larger, pre-defined arrangement involving a total interest amount of Rs92 billion. Under the government-approved mechanism, this sum is being repaid in twelve equal monthly installments, a process that officially commenced in July 2025. By adhering to this timeline, the government aims to systematically reduce the financial burden on OGDCL, which has historically been strained by the accumulation of unpaid dues across the energy value chain. Power Holding (Private) Limited continues to serve as the primary settlement entity responsible for managing these specific interest components.
Industry analysts view the timely receipt of these installments as a positive indicator for the broader energy sector. The circular debt crisis has long been a bottleneck for infrastructure development and exploration activities in Pakistan, as it ties up significant capital that could otherwise be reinvested into increasing domestic production. The consistent progress of this repayment plan reflects a disciplined approach by the authorities to address long-standing fiscal imbalances and restore the financial health of critical state-owned enterprises like OGDCL.
For the company, these inflows provide much-needed fiscal space to maintain its operational momentum and fund high-tech projects, such as the recently announced horizontal drilling initiatives. As the leading exploration and production firm in the country, OGDCL’s financial stability is directly linked to national energy security. The company noted in its PSX filing that this development highlights the success of the government’s plan to stabilize the sector through transparent and structured financial settlements rather than ad-hoc measures.
As the repayment schedule enters its final quarters, the focus will likely shift to the settlement of the principal amounts and the prevention of further debt accumulation. For now, the successful execution of the interest payment plan serves as a confidence booster for shareholders and market participants. With three installments remaining in this specific cycle, the energy sector remains watchful for the next phases of the government’s broader circular debt management strategy, which is crucial for the long-term sustainability of Pakistan’s power and gas markets.
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