OGDC Receives Third Rs7.73bn Interest Payment Under Circular Debt Plan

September 30, 2025: Oil & Gas Development Company Limited (PSX: OGDC), the country’s largest exploration and production (E&P) company, has received its third interest instalment 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) on Tuesday, OGDC confirmed that this payment is part of the government-approved mechanism whereby the total interest of Rs92 billion will be repaid in twelve equal monthly instalments of Rs7.725 billion each, starting July 2025.

The company highlighted that the timely receipt of the third instalment underscores the government’s continued progress in addressing circular debt within the energy sector. Last month, OGDC had already received the second tranche of Rs7.73 billion.

Earlier in June 2024, as part of the broader circular debt settlement, the government approved a payment of Rs82 billion to OGDC against the principal amount of its investment in Privately Placed Term Finance Certificates (PPTFCs) issued by PHL. Additionally, OGDC agreed to waive off Rs72 billion in liquidated damages at the government’s directive.

OGDC, incorporated in 1997 (and formerly the Oil & Gas Development Corporation established in 1961), continues to play a leading role in Pakistan’s upstream energy sector through exploration, development, and production of oil and gas resources.