The Federal Cabinet has approved the repayment of a longstanding Rs. 82 billion loan owed to the Oil and Gas Development Company Limited (OGDC), government sources told ProPakistani.
The loan, initially borrowed in 2012 by state-run Power Holding Limited, was intended to clear dues owed by power companies and address inter-corporate circular debt of the power sector.
Sources said the Ministry of Finance had provided a guarantee for the financing facility on behalf of the President of Pakistan. Over time, this facility was converted into a government loan. Now, the approved repayment will cover the principal amount, with separate provisions made for interest payments to OGDC.
