ECC clears dues settlement framework for OGDCL, SNGPL

November 07, 2025 (MLN): The Economic Coordination Committee (ECC) has approved a comprehensive framework for the settlement of outstanding dues and rationalization of tariffs involving Oil and Gas Development Company Limited (OGDCL), Sui Northern Gas Pipelines Limited (SNGPL), nuclear power plants (NPPs), and government-owned power plants (GPPs), the Finance Division said in a statement.

The proposal, crafted under the Prime Minister’s Task Force on Power Sector Reforms, seeks to streamline inter-entity payments, enhance fiscal discipline, and reduce systemic inefficiencies that have long plagued Pakistan’s energy value chain.

Under the endorsed framework, concerned entities have agreed on mutual settlements of long-pending dues while waiving certain financial claims to restore liquidity across the sector.

The measure is aimed at supporting the government’s ongoing efforts to curb circular debt accumulation, which continues to strain the national exchequer and the operational capacity of power utilities.

The decision would have a direct positive impact on OGDCL and SNGPL, both of which have faced liquidity pressures due to delayed payments from the power sector.

The rationalization of payments and waiver arrangements are expected to unlock receivables, improving the companies’ cash flows, dividend potential, and investment capacity in upstream and midstream operations.

This initiative formed part of the government’s broader energy sector reform agenda, which focuses on reducing cost of power generation, improving governance and financial transparency, and ensuring long-term tariff stability.

The ECC’s approval indicated a major policy shift toward a market-based, sustainable power ecosystem, addressing long-standing payment bottlenecks that have hindered both state-owned and listed energy companies.

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