The Central Power Purchasing Agency-Guaranteed (CPPA-G) will make a lump-sum payment of Rs89.5 billion to the Oil and Gas Development Company Limited (OGDCL) on behalf of Uch Power Limited (UPL) and Uch Power-II under the circular debt financing facility, Business Recorder reported, citing sources.
The payment, earlier scheduled in 18 monthly instalments, was converted to a one-time settlement to ease liquidity pressures on OGDCL. The decision follows the Economic Coordination Committee’s (ECC) approval of a power division plan for tariff rationalisation and late payment interest (LPI) waivers for government power producers, including nuclear power plants.
As per report, Rs614.9 billion has already been disbursed to government-owned power producers (GPPs), including nuclear plants. Outstanding liabilities of Rs150 billion remain as of July 2025. Future payments will continue through the Rs1.275 trillion circular debt financing facility.
The ECC had earlier approved a framework under which CPPA-G would clear dues owed to GPPs, while the Pakistan Atomic Energy Commission (PAEC) waived LPI claims up to December 31, 2024. In return, CPPA-G agreed to lower the delayed payment rate to three-month KIBOR plus one percent per annum.
The federal cabinet had also approved the waiver of Rs54 billion in LPI by OGDCL for Uch and Uch-II plants and authorised CPPA-G to pay the Rs89.5 billion principal amount in instalments. However, the task force on power sector reforms recommended a lump-sum payment, given OGDCL’s cash constraints and available funds under the debt facility.
Sources said CPPA-G confirmed that 10 out of 18 instalments had already been paid as of October 22, 2025.
Additionally, the cabinet approved an LPI waiver of Rs68.6 billion in the books of SNGPL for RLNG supplies to NPPMCL’s Haveli Bahadur Shah and Balloki plants, Quaid-e-Azam Thermal, and Nandipur power plants. The decision also upheld a 66% “take-or-pay” arrangement for RLNG supplies until December 2024, with a 50 percent level thereafter.
The Oil and Gas Regulatory Authority (OGRA) has cautioned that adjustments related to RLNG cost-of-supply may raise consumer prices. The regulator said any future SNGPL claims must be backed by independent audit certification and approval from the power division.
The Power Division has sought ECC approval to formalise settlement agreements with PAEC, authorise CPPA-G to amend relevant power purchase agreements, and issue policy guidelines to enable OGRA to incorporate Rs21.9 billion in verified adjustments into RLNG cost-of-supply.
