The Oil and Gas Development Company Limited (PSX: OGDC) has received the seventh interest payment of Rs. 7.725 billion from Power Holding Private Limited under Term Finance Certificates for the government-backed circular debt settlement plan.
The payment is part of a structured arrangement under which a total interest amount of Rs. 92 billion is to be paid to OGDC in twelve equal monthly instalments. The repayment process began in July 2025.
OGDCL said the payment was received under a mechanism approved by the Government of Pakistan, with Power Holding Private Limited acting as the designated entity for servicing the interest obligations.
Circular debt has remained one of Pakistan’s most persistent energy sector challenges, driven by delayed payments, power sector inefficiencies, and mounting government liabilities. Over the years, the accumulation of unpaid dues has constrained investment capacity and operational planning for companies like OGDC.
Under the approved plan, interest payments are being made on a monthly basis, providing liquidity relief to OGDC and improving cash flow visibility for the country’s largest exploration and production company.
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