OGDCL receives seventh monthly interest payment under circular debt plan

Oil and Gas Development Company Limited has received its seventh consecutive monthly interest payment from Power Holding (Private) Limited under the government’s Circular Debt Settlement Plan, the company said.

The latest instalment amounts to Rs7.725 billion and was disclosed through a notice to the Pakistan Stock Exchange and the London Stock Exchange in line with the Securities Act, 2015.

The payment forms part of a government-approved mechanism to settle Rs92 billion in accrued interest on Term Finance Certificates through 12 equal monthly instalments. The repayment schedule began in July 2025 and is expected to conclude by mid-2026.

OGDCL said the latest receipt has taken total interest recovered under the plan to around Rs54 billion.

The interest payments follow a settlement reached in June 2024, when the federal government cleared Rs82 billion in principal dues owed to the company as part of broader efforts to address circular debt in the energy sector.

Circular debt has remained a persistent issue for Pakistan’s power sector, where payment delays across the supply chain create liquidity constraints for fuel suppliers and upstream exploration firms.

The company said the continued flow of payments has improved its cash position, supporting ongoing exploration and production activities.