Circular debt plan: OGDC receives Rs7.73bn 5th interest payment

Oil and Gas Development Company Limited (OGDCL) said it had received the fifth installment of Rs 7.725 billion from Power Holding (Private) Limited (PHL) under the government’s circular debt settlement plan.

Pakistan’s largest E&P firm disclosed the development in a notice to the Pakistan Stock Exchange (PSX) today.

“As previously disclosed, the total interest amount of Rs 92 billion is to be repaid in twelve equal monthly installments, commencing July 2025,” read the notice.

The OGDCL said that the receipt of this installment, being one of twelve equal monthly installments, reflects continued progress under the government’s initiative to address circular debt in the energy sector.

Last year in June, as part of the circular debt settlement plan, the government approved payment of Rs82 billion to OGDCL, representing the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL.

The government also approved repayment of interest of Rs92 billion in twelve equal instalments commencing from July 2025.

OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984 (now the Companies Act, 2017).

The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.