Oil and Gas Development Company Limited (OGDCL) has received another major payment under the government’s circular debt reduction programme, marking progress in efforts to ease financial pressure in Pakistan’s energy sector.
According to information shared with the Pakistan Stock Exchange, the company received ₨. 7.725 billion as its eleventh monthly interest payment from Power Holding (Private) Limited.
The payment is linked to the settlement mechanism introduced by the government to address long-standing circular debt challenges.
OGDCL explained that the repayment is being made through monthly instalments under an arrangement connected with Term Finance Certificates (TFCs).
The total interest amount of approximately ₨. 92 billion is scheduled to be paid over twelve equal monthly payments starting from July 2025.
The latest transfer represents the second-last instalment under the current repayment structure. One final payment remains before completion of the agreed interest settlement plan.
Pakistan’s energy sector has faced circular debt issues for years, creating financial difficulties for power producers, fuel suppliers and other related companies.
The government has introduced different measures to reduce outstanding liabilities and improve liquidity across the sector.
Officials believe regular repayments under the programme could help strengthen confidence among energy companies while improving financial stability in the industry.
Reducing circular debt is also considered important for attracting investment and ensuring smoother operations within the country’s power and energy system.
OGDCL remains one of Pakistan’s leading exploration and production companies, playing a major role in oil and gas development.
The latest payment reflects continued implementation of government-backed financial reforms aimed at resolving energy sector challenges.