OGDC gets Rs7.7bn boost on Power Holding's 9th TFC payment

March 25, 2026 (MLN): The Oil & Gas Development Company Limited (PSX: OGDC) has received the ninth installment of interest under Term Finance Certificates (TFCs) from Power Holding (Private) Limited (PHL). 

This marked another step forward in the government’s ongoing efforts to address circular debt in the energy sector.

As part of a GOP-approved mechanism aimed at resolving the chronic circular debt issue affecting Pakistan’s energy industry, PHL is repaying a total interest amount of Rs 92 billion in twelve equal monthly installments of Rs 7.725 billion each.

The repayment schedule commenced in July 2025, and the receipt of the ninth installment reflects steady and timely execution of the government’s initiative.

Circular debt has long been a challenge in Pakistan, impacting both the operational and financial health of energy sector entities.

The government’s structured repayment plan, under which PHL is now making its ninth interest payment, seeks to stabilize the sector and restore confidence among investors and stakeholders.

The continued timely payments by PHL highlight the effectiveness of the GOP’s mechanism in mitigating financial pressures in the energy sector while ensuring that OGDC receives its due interest under the TFC framework.

The successful implementation of these installments could improve liquidity for both state-owned and private energy companies, potentially paving the way for long-term sectoral stability.

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