Oil and Gas Development Company Limited (OGDC) has received the fifth interest installment of Rs7.725 billion from Power Holding Private Limited (PHL). The payment is part of the government’s circular debt settlement plan aimed at easing financial pressure in the energy sector.
OGDC shared the update in a notice to the Pakistan Stock Exchange. The company said the payment reflects the government’s continued progress in clearing long-standing dues owed to state-owned energy firms.
According to the notice, the total interest amount of Rs92 billion will be settled through twelve equal monthly installments. These payments began in July 2025 under the approved repayment structure. OGDC stated that the latest installment is one of the scheduled monthly payments and supports broader efforts to reduce circular debt.
Last year in June, the government approved a payment of Rs82 billion to OGDC. This amount represented the principal value of the company’s investment in Privately Placed Term Finance Certificates issued by PHL. The approval also included repayment of Rs92 billion in interest through monthly installments starting July 2025.
OGDC is Pakistan’s largest oil and gas exploration company. It was established in October 1997 under the Companies Ordinance, 1984, which is now replaced by the Companies Act, 2017. The company took over the responsibilities of the former Oil and Gas Development Corporation, created in 1961 to develop the country’s petroleum resources.
The company said the steady flow of repayments will support its cash position and improve financial stability within the energy supply chain. It also noted that restoring liquidity is essential for maintaining operations and supporting new exploration activities.
In other related news also read OGDC Discovers Significant Gas And Condensate Reserves In Khairpur
With this latest installment, OGDC remains confident that the government’s plan will help reduce circular debt and strengthen the overall performance of the energy sector.
