Oil and Gas Development Company Limited (OGDC), Pakistan’s largest exploration and production (E&P) firm, announced on Tuesday that it has received the third interest payment of Rs7.73 billion from Power Holding (Private) Limited (PHL) under the government’s circular debt settlement plan.
In a notice to the Pakistan Stock Exchange (PSX), the company said the payment is the third instalment out of twelve equal monthly payments, each amounting to Rs7.725 billion, as part of the approved settlement mechanism.
“As previously disclosed, the total interest amount of Rs92 billion is to be repaid in twelve equal monthly instalments, commencing July 2025,” the notice stated.
The company highlighted that the timely receipt of the instalments demonstrates continued progress in the government’s efforts to reduce circular debt in the energy sector.
Last month, OGDC received its second instalment of Rs7.73 billion, while in June 2024, the government approved the payment of Rs82 billion as principal amount to OGDC against its investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL.
Additionally, as part of the settlement, OGDC agreed to waive Rs72 billion in liquidated damages on government directives.
OGDC, incorporated on October 23, 1997, under the Companies Ordinance, is Pakistan’s largest oil and gas exploration company. It was formed to continue exploration, development, production, and sale of petroleum resources, previously carried out by the Oil and Gas Development Corporation, established in 1961.
