OGDC receives 3rd instalment of Rs7.72bn in CD settlement

September 29, 2025 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) has received the third monthly instalment of Rs7.725 billion as interest payment from Power Holding (Private) Limited (PHL).

This development has marked continued progress in the government's circular debt settlement initiative.

The payment represents the third of twelve equal monthly installments totalling Rs92bn in interest on Term Finance Certificates (TFCs), according to a disclosure filed with the Pakistan Stock Exchange on Tuesday.

The installment payments, which commenced in July 2025, are part of a Government of Pakistan-approved mechanism designed to address the longstanding circular debt issue plaguing the country's energy sector.

Under the structured payment plan, PHL is required to make equal monthly payments through June 2026.

"The receipt of this instalment reflects continued progress under the GOP's initiative to address circular debt in the energy sector," stated Wasim Ahmad, Company Secretary of OGDCL, in the regulatory filing.

The circular debt settlement represents a significant step in resolving payment bottlenecks that have historically constrained Pakistan's energy sector, affecting power generation companies and fuel suppliers alike.

OGDC, Pakistan's leading exploration and production company, is among the entities receiving payments under this comprehensive debt resolution framework.

With nine installments remaining through mid-2026, the structured payment mechanism aims to provide financial stability and predictability for stakeholders in Pakistan's energy value chain.

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