Oil and Gas Development Company Limited (OGDCL) has received the fifth installment of Rs 7.725 billion from Power Holding (Private) Limited (PHL) as part of the government’s circular debt settlement plan. The country’s largest exploration and production (E&P) company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) today.
The company clarified that the total interest amount of Rs 92 billion is to be repaid in twelve equal monthly installments, starting from July 2025. This installment marks continued progress in the government’s initiative to tackle the circular debt issue plaguing the energy sector.
As part of the settlement, the government had approved payment of Rs 82 billion to OGDCL last year in June, representing the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by PHL. Additionally, the government approved the repayment of Rs 92 billion in interest, to be settled over the course of twelve monthly installments.
OGDCL, incorporated on October 23, 1997, under the Companies Ordinance of 1984 (now the Companies Act, 2017), was established to explore and develop oil and gas resources in Pakistan. The company also handles the production and sale of oil and gas, taking over the activities previously carried out by Oil and Gas Development Corporation, founded in 1961.
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