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.
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.