The Oil and Gas Development Company Limited (OGDCL) has received the sixth installment of Rs 7.725 billion as part of the ongoing effort to settle Pakistan’s circular debt, according to a filing by the company.
This payment is one of twelve equal monthly installments due from Power Holding Limited (PHL), pursuant to the Government of Pakistan’s (GoP) circular debt settlement mechanism.
As per earlier disclosures, the total interest amount of Rs 92 billion will be repaid in 12 monthly installments, which began in July 2025. The receipt of the latest installment is a continued progress in the GoP’s efforts to address the growing circular debt crisis within the energy sector.
On December 11, OGDCL received Rs41.8 billion from Uch Power (Private) Limited as part of the circular debt settlement plan.
In June 2024, the federal government had approved payment of Rs 82 billion to OGDCL, representing the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL. Additionally, the government approved the repayment of Rs 92 billion in interest, to be settled over the course of 12 monthly installments.
OGDCL, incorporated on October 23, 1997, under the Companies Ordinance of 1984 (now the Companies Act, 2017), was established to explore and develop oil and gas resources in Pakistan. The company also handles the production and sale of oil and gas, taking over the activities previously carried out by Oil and Gas Development Corporation, founded in 1961.
