June 27, 2024 (MLN): As part of the circular debt settlement plan, the Oil and Gas Development Company Limited (OGDC) has agreed to waive off Rs72 billion on account of liquidated damages on the directives of the government.
This decision is in response to the government's approval of a Rs82bn payment to the company, which represents the principal amount of its investment in Privately Placed Term Finance Certificates (PPTFC) issued by Power Holding (Private) Limited (PHL).
Furthermore, the government has also approved the repayment of interest of Rs92bn in twelve equal installments commencing from July 2025.
OGDCL had subscribed to these certificates for settling its overdue receivables from oil refineries and gas companies.
The GOP’s initiative aimed at resolving the circular debt issue paves the way for sustainable growth and enhances shareholder value.
To recall, on June 13, 2024, the Economic Coordination Committee (ECC) approved the aforementioned recovery for OGDC from PHL.
As a result, OGDCL was also instructed to settle its liabilities to the government following this substantial recovery authorized by the committee.
