OGDC Receives First Rs. 7.7 Billion Interest Payment Under Circular Debt Settlement Plan
Oil and Gas Development Company Limited (OGDC) has received its first interest payment of Rs. 7.725 billion from Power Holding (Private) Limited (PHL), signaling the launch of the government’s much-anticipated circular debt settlement plan.
In a notification to the Pakistan Stock Exchange (PSX), OGDC confirmed that this payment is the first of twelve equal monthly installments, totaling Rs. 92 billion in interest. The repayment schedule officially began in July 2025.
Government-Led Financial Reform
The payment is part of the Government of Pakistan’s initiative to address the growing issue of circular debt in the energy sector—an ongoing financial challenge that has impacted power producers, fuel suppliers, and overall energy sector stability.
OGDC stated that the disbursement reflects meaningful progress in efforts to resolve the financial bottlenecks within the power and energy ecosystem.
Positive Market Response
The announcement comes as OGDC continues to demonstrate strong performance. Recently, the company crossed the Rs. 1 trillion market capitalization milestone, further supported by positive investor sentiment and broader energy sector developments.
