Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest E&P firm, has received the first interest payment of Rs7.73 billion from Power Holding (Private) Limited (PHL) under the government’s circular debt settlement plan.
The E&P disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
“As part of the circular debt settlement plan, OGDCL has received the first interest payment of Rs7.725 billion from PHL, pursuant to the Government of Pakistan (GOP) approved mechanism.
“As previously disclosed, the total interest amount of Rs92 billion is to be repaid in twelve equal monthly instalments, commencing July 2025,” read the notice.
OGDCL shared that receiving this initial payment reflects progress under the Government of Pakistan’s initiative to address circular debt in the energy sector.
Last year in June, as part of the circular debt settlement plan, the government approved payment of Rs82 billion to OGDCL, representing the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL.
The government also approved repayment of interest of Rs92 billion in twelve equal instalments commencing from July 2025.
OGDCL, as part of the settlement, agreed to waive off Rs72 billion on account of liquidated damages on the directives of the government.
OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984 (now the Companies Act, 2017). The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.
