OGDCL Secures Second Rs7.73bn Interest Payment Under Circular Debt Plan

Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has announced the receipt of its second interest installment of Rs7.73 billion from Power Holding (Private) Limited (PHL). The payment is part of the Government of Pakistan’s ongoing circular debt settlement plan for the energy sector.

According to OGDCL’s notice to the Pakistan Stock Exchange (PSX) on Tuesday, this marks the second of twelve equal monthly installments of Rs7.725 billion each. The cumulative interest repayment amounts to Rs92 billion, scheduled to be cleared by June 2026.

Earlier this month, OGDCL had received the first installment of Rs7.73 billion. In June 2024, the government cleared Rs82 billion towards the principal repayment of OGDCL’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL, while also approving the Rs92 billion interest settlement plan.

As part of the agreement, OGDCL waived Rs72 billion in liquidated damages on government directives, facilitating the broader restructuring of energy-sector liabilities.

This progress underscores the government’s commitment to reducing circular debt pressures while strengthening OGDCL’s liquidity position.

Established in 1961 (and later incorporated as a company in 1997 under the Companies Ordinance), OGDCL remains Pakistan’s flagship E&P firm engaged in the exploration, development, production, and sale of oil and gas resources.