Oil and Gas Development Company Limited (OGDCL) has received the first interest payment of Rs7.725 billion from Power Holding (Private) Limited (PHL) as part of the circular debt settlement plan.
Pakistan’s leading Exploration & Production giant disclosed this development through a disclosure to the Pakistan Stock Exchange (PSX) on Monday in compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of PSX regulations.
“With reference to our earlier disclosure dated June 27, 2024, we are pleased to inform that, as part of the circular debt settlement plan, Oil and Gas Development Company Limited (OGDCL) has received the first interest payment of Rs 7.725 billion from Power Holding (Private) Limited (PHL), pursuant to the Government of Pakistan (GOP) approved mechanism,” read the OGDCL’s disclosure.
The company said that the total interest amount of Rs 92 billion is to be repaid in 12 equal monthly installments, commencing July 2025.
“The receipt of this initial payment reflects progress under the GOP’s initiative to address circular debt in the energy sector,” it added.
On June 27, 2024, OGDCL announced through the PSX that the government had approved the payment of Rs82 billion as the principal amount for its investment in privately placed term finance certificates (PPTFC) issued by Power Holding Company Pvt Ltd (PHL).
OGDCL had subscribed to these certificates to settle overdue receivables from oil refineries and gas companies.
The government had initially approved the issuance of Rs82 billion worth of TFCs by Power Holding Company in 2013 as part of the circular debt settlement plan for overdue receivables.
The term finance certificates were originally issued with a seven-year tenure and a three-year grace period but were later extended to a 10-year term with a six-year grace period in 2017. As of March 24, the total principal and interest due on these certificates reached Rs170 billion.
