Oil & Gas Development Company Limited (OGDCL) has received the second monthly interest payment of Rs7.725 billion from Power Holding (Private) Limited (PHL) under the Government of Pakistan’s circular debt settlement initiative, according to a filing at the local bourse on Tuesday.Â
The installment is the second of twelve equal payments, covering a total interest amount of Rs92 billion on term finance certificates issued by PHL. The repayment plan, approved by the government, began in July 2025 to address longstanding circular debt in the energy sector.
OGDCL disclosed the payment to the Pakistan Stock Exchange, Securities and Exchange Commission of Pakistan, and London Stock Exchange, in line with regulatory requirements under Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of PSX regulations.
Company Secretary Wasim Ahmad said the receipt of this installment reflects steady progress in implementing the government-approved mechanism to improve liquidity and stabilise the power sector.
On August 4, OGDCL received the first interest payment of Rs7.725 billion from PHL as part of the circular debt settlement plan.
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.
