Oil and Gas Development Company Limited (OGDCL) has received Rs41.8 billion from Uch Power (Private) Limited as part of the government’s circular debt settlement plan, the company said in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
The payment relates to longstanding receivables owed to OGDCL and forms part of the federal government’s wider effort to address liquidity constraints and settlement backlogs within the energy sector.
OGDCL submitted the information in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations, requesting dissemination to market participants.
The company said the receipt marks progress in the circular debt resolution initiative being implemented across the energy sector.
As part of the settlement, the government had approved payment of Rs 82 billion to OGDCL in June 2025, representing the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by Power Holding Limited (PHL).
Additionally, the government approved the repayment of Rs 92 billion in interest, to be settled over the course of 12 monthly instalments.
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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